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

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Zebra Technologies chief executive Anders Gustafsson told CNBC’s Jim Cramer on Friday that while the company has seen lower transportation costs, shortages of components such as semiconductor chips continue to cause problems.

“Over the last couple of years we’ve seen a kind of migration of some of the issues. Now it started with freight being the issue that we talked about, the cost that we incurred, which has subsided. C Q1 was a little bit better than Q4 – our cost per pound was going down, not to where it was pre-pandemic, but it was definitely down,” Gustafsson said in an interview on “Mad Money.” .

He added that the company expects these levels to remain at those levels for the rest of the year.

Still, “component shortages, semiconductor shortages, and now we’re spending a lot more money securing long-lead parts and shipping them to our facilities and then shipping the finished products to our customers,” he said. said the CEO.

And although the company had to pay for more expensive shipping options due to supply chain delays, it expects to see an improvement later in the year, according to Gustafsson.

“We basically put everything on air freight rather than putting it in a container on the ocean [freight]which would obviously be a lot cheaper, but as the year progresses, hopefully we’ll have a better supply and be able to put more stuff on the ocean,” he said.

Shares of Zebra rose 6.36% on Friday.

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