- Dutch navigation and digital mapping company TomTom said on Thursday the war in Ukraine and increasing inflation could impact supply chains and general economic activity, but the effects on the group remained limited.
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"The immediate effects of the war seem to be limited and contained. That's what we hear from our partners in the industry," Chief Executive Officer Harold Goddijn told Reuters.
TomTom's customers include carmakers Stellantis, Volkswagen, Renault and Toyota Motor Corp.
Goddijn said the group's presence in Russia is historically very limited and it does not have any customers in Ukraine.
He added some factories in Ukraine belonging to carmakers or their suppliers were still working, even if not at full capacity.
Goddijn estimated carmakers have lost about 8% of their production capacity compared to last year, but the impact has been cushioned by higher prices for new cars.
"In terms of profitability, the carmakers do not complain – it's a bit of a funny situation," he said.
The industry is expecting the supply constraints, which have forced carmakers around the globe to slash production, to be lifted in 2023, according to Goddijn.
The Amsterdam-based company maintained its full-year outlook for revenue between 470 million and 510 million euros ($512.86 million-$556.51 million), with 380-420 million euros generated from its core location technology business.
"In our guidance, we had assumed that 2022 will not be an easy year," Goddijn said, adding that in the first quarter everything went according to plan.
TomTom reported operating loss of 19.8 million euros for the first three months of the year, against a 20 million euro loss expected by analysts.
It also reaffirmed its revenue and cash flow guidance for next year.
($1 = 0.9164 euros)