TomTom's quarterly loss widens as inflation, supply chain issues weigh
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DUTCH navigation and digital mapping company TomTom on Friday (Jul 15) reported worse-than-expected loss for the second quarter, citing high inflation and strained supply chains.
The Amsterdam-based company, whose products are used by major carmakers and leading global tech firms, posted quarterly operating loss of 55.5 million euros (S$78.1 million), against analysts' average forecast for loss of 20 million euros.
The group confirmed its 2022 outlook for revenue of 470 million to 510 million euros but warned about uncertainties related to Russia's invasion of Ukraine and increasing inflation.
"These could impact supply chains, cost levels, general macro-economic activity as well as the valuation of our assets and liabilities on the balance sheet," the company said in a statement.
The company, whose clients range from Volkswagen and Renault to Microsoft, has been hit by the global chip shortage that has disrupted the automotive and electronics industries and forced automakers to slash production.
TomTom, which in June initiated restructuring of its maps unit, said the plan had impacted its operating expenses by 31 million euros in the quarter.
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Cash outflows related to restructuring are expected to be weighted towards the second half of the year, with roughly one third of the total costs expected in 2023, it added.
Net loss for the second quarter amounted to 55 million euros, missing analysts' consensus by 35 million euros, while revenue was in line with estimates at 133 million euros. REUTERS
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