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STOCKHOLM, March 23 (Reuters) – Shares in the Volvo AB fell 7% on Tuesday after the Swedish truck maker warned of a sharp hit on production in the second quarter due to a global shortage of semiconductors.
The company, which has 18 production facilities worldwide, has had to cut production shortages at its Belgian and Brazilian factories.
Deutsche Bank analysts estimated that Volvo would make 16,000 fewer trucks in the second quarter and that consensus earnings could drop 4-7% this year.
The Swedish company, German competitor Daimler and Traton, said late on Monday that visibility into the semiconductors supply chain was very low and that the disruption would also affect other group business areas. .
Assuming four weeks of lost sales in Europe and Brazil and a fall of more than 30%, the 3.6 billion Swedish crowns ($ 421.7 million) would have an impact on second-quarter earnings before interest and tax. Citi analysis estimates.
Global manufacturers have been hit by a shortage of semifinals, forcing them to cut or stop production as the supply of available chips was maintained by consumer electronics manufacturers such as smartphones – the chip industry’s preferred buyers because they buy more advanced chips, with a higher margin.
U.S. manufacturers such as General Motors and Ford, Volkswagen from Germany and Honda Motor in Japan have suffered greatly in production.
Volvo Cars, owned by Geely Holdings in China, had also said it would suspend or temporarily stop production in China and the United States for parts of March. ($ 1 = 8.5363 Swedish crowns) (Reporting by Supantha Mukherjee in Stockholm; edited by Niklas Pollard)