New Delhi: Dutch navigation and digital mapping firm TomTom on Thursday reduce its 2021 outlook, amid a world scarcity in semiconductor chips that has disrupted auto provide chains and will eat into its revenues from carmakers.TomTom now anticipates revenues of 500-530 million euros ($592-$627 million), in comparison with the 520-570 vary it had beforehand guided, and reduce its free money circulation steerage from round 6% to round 5%.
The corporate, which has posted a quarterly web loss for the final two years, reported a lack of 23.6 million euros – deeper than the 15 million analysts had predicted.
“Once we gave our steerage early this 12 months we knew the semiconductor scarcity might have an impact, however it is rather troublesome to know when the worst half is over and we begin to see restoration,” finance chief Taco Titulaer informed Reuters in an interview.
Titulaer now expects it can take till not less than the top of the 12 months for automotive provide chains to start out normalising, although the state of affairs ought to enhance from the third quarter.
The scarcity has had the dual impact of slicing automobile manufacturing, he added, and pushing producers to prioritise less complicated vehicles which use fewer chips.
Within the second quarter, TomTom however noticed revenues from its automotive enterprise bounce 18% in comparison with final 12 months, when a primary wave of lockdowns shut down massive components of the business.
Main carmakers have once more needed to reduce manufacturing this 12 months as a result of coronavirus-sparked chips scarcity – together with main TomTom prospects akin to Stellantis.
Titulaer mentioned that although volumes of automobile gross sales have been displaying sturdy enchancment on 2020, the earlier 12 months had been “fairly dire”.
With volumes nonetheless beneath 2019 ranges, he mentioned it might take a pair quarters for these to get again to regular.
China’s general gross sales stood at 2.02 million automobiles in June, in line with information from the China Affiliation of Car Producers (CAAM). The nation offered 12.89 million automobiles between January and June, up 25.6% from year-ago ranges.
