Zebra CEO states freight expenses have actually moderated, part scarcities still a headwind

Zebra CEO says freight costs have moderated, component shortages still a headwind

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Zebra Technologies president Anders Gustafsson informed CNBC’s Jim Cramer on Friday that while the business has actually seen freight expenses boil down, scarcities of parts like semiconductor chips continue to trigger problems.

“Over the past two years, we’ve seen kind of a migration of some of the issues. Now, it started off with freight being the issue that we talked about, the cost that we incurred, that has moderated. It was somewhat better in Q1 than it was in Q4 – our cost per kilo was coming down, not to what it was pre-pandemic but it certainly was down,” Gustafsson stated in an interview on “Mad Money.”

He included that the business is anticipating a hold at these levels for the remainder of the year.

Yet, “component shortages, semiconductor shortages, and we’re now spending a lot more money on securing long-lead time parts and having to expedite them to our facilities and then expediting the finished goods to our customers,” the CEO stated.

And while the business has actually needed to spend for more pricey shipping choices as an outcome of the supply chain hold-ups, it anticipates to see enhancement later on in the year, according to Gustafsson.

“We are putting whatever essentially on air cargo versus putting it in a container on ocean [freight], which certainly would be more affordable, however as we go through the year, we anticipate that we will improve supply and we will have the ability to put more things on ocean,” he stated.

Shares of Zebra increased 6.36% on Friday.

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