Dutch navigation and digital mapping firm TomTom warned provide chain issues within the auto sector may final till the primary half of subsequent 12 months after it reported a much bigger than anticipated quarterly core loss.
Auto manufacturing has been hammered by a worldwide scarcity in semiconductor chips, which has pressured carmakers nonetheless recovering from final 12 months’s coronavirus disruptions to halt manufacturing once more.
“Collectively we’ve underestimated how huge the availability chain points, and particularly for semiconductor shortages, have been or have develop into”, Chief Monetary Officer Taco Titulaer instructed Reuters.
Titulaer added TomTom’s client and automotive income numbers would proceed to be affected by these challenges.
The group stated the restoration of its automotive division, which provides maps and navigation software program to carmakers, lagged expectations because it noticed gross sales fall 21% within the third quarter.
The buyer enterprise, which sells automotive {hardware} akin to transportable navigation gadgets, beat a company-provided consensus however nonetheless noticed a decline of 24% within the quarter.
The group’s enterprise enterprise, which supplies maps, visitors info and navigation software program to tech corporations like Uber and Microsoft, noticed gross sales develop 8% due to contract expansions from earlier intervals.
TomTom reiterated its 2021 income steering, however stated it will possible are available in on the decrease finish of its 500-530 million euro vary. It additionally lowered its annual free money stream steering from round 5% to round 2% of complete income.
The Amsterdam-based firm reported a third-quarter loss earlier than curiosity, taxes, depreciation and amortisation of 5.3 million euros ($6.1 million), lacking the 1-million-euro loss analysts had forecast.
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