STOCKHOLM -- Automotive technology group Veoneer said its first-quarter losses narrowed despite emerging cost pressures from a global microchip shortage, but the supplier stood by guidance for like-for-like sales growth of more than 25 percent this year.
Veoneer said in a statement that operating losses eased to $104 million from $122 million in the year-ago quarter.
The company's quarterly net loss narrowed to $104 million, more than half the net loss of $231 million posted a year ago. Revenue increased 16 percent to $419 million.
The maker of vision systems, radars and software for advanced driver-assistance systems (ADAS) was hit hard by the initial outbreak of pandemic more than a year ago. But car production has since broadly recovered while facing a shortage of electronic components, above all semiconductors.
The company, which competes with suppliers including Aptiv, Bosch, Continental and Mobileye, said the chip shortage had resulted in extra costs in the quarter while it also contended with the lingering turbulence created by the pandemic.
"In conjunction with these developments the underlying demand for cars continues to be strong," Veoneer CEO Jan Carlson said in the statement.
"We anticipate that disruptions will continue during the second quarter and then gradually decrease," he added.
Veoneer shares fell 14 percent to close at $22.99 in New York on Wednesday.
Automotive News contributed to this report.