Aug 1 (Reuters) - Mobileye Global cut its annual revenue and profit forecasts on Thursday, blaming volatile demand for its driver-assistance chips in China even as the automotive tech company reels from weak sales due to global production cuts.
Shares of the company, which have shed more than 50% of their value so far this year, slumped 9.1% in premarket trading.
Automakers have been keeping a tight check on production levels as they come off a pandemic-induced inventory glut, denting business at auto industry suppliers such as Mobileye, which has partnerships with companies including Ford, Honda and Volkswagen for its ADAS technologies.
While its customers' inventories have been pared down, Mobileye said weakness in China would dent its chip shipment volumes for the rest of the year.
"The excess inventory at... customers that meaningfully impacted our business in the first half of 2024 appears to be almost fully behind us, but a more significant than anticipated softening of business conditions in China is expected to lead to challenges in the second half," CEO Amnon Shashua said.
The Israel-based company now expects full-year revenue of $1.60 billion to $1.68 billion, lower than $1.83 billion to $1.96 billion expected previously. Analysts on average estimate $1.87 billion, according to LSEG data.
The company reported revenue of $439 million in the second quarter, compared with $454 million a year ago and analysts' average estimate of $424.8 million.
Mobileye now expects full-year adjusted operating income between $152 million and $201 million, compared with its prior expectation of $270 million to $360 million.
