Zebra Technologies Chief executive Anders Gustafsson told CNBC’s Jim Cramer on Friday that although the company has seen transportation costs drop, shortages of components such as semiconductor chips continue to cause problems.
“Over the past couple of years, we’ve seen some sort of migration of some of the problems. Now, it started with transportation as an issue we talked about, the cost we incurred, which was moderate. It was a little better in the Q1 vs Q4: Our cost per kilo was falling, not to what it was pre-pandemic, but it was definitely falling, “Gustafsson said in an interview with”crazy money. “
He added that the company expects to hold at these levels for the remainder of the year.
However, “shortage of components, shortage of semiconductors and we are now spending far more money on securing parts with long lead times and having to ship them to our facilities and then ship the finished products to our customers,” said the CEO.
And while the company has had to pay for more expensive shipping options due to supply chain delays, Gustafsson expects to see improvements later in the year.
“We are basically putting everything on air freight instead of putting it in a container over the ocean [freight]which of course would be a lot cheaper, but as the year goes on, we expect to get a better supply and we will be able to put more stuff overboard, “he said.
Shares of Zebra were up 6.36% on Friday.
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