China helps Valeo increase its sales in the third quarter

Article by Christian Andrei, on October 19, 2013

Valeo’s sales in the third quarter grew as demand increased in China and North America and the European auto market displayed signs of stabilizing. The French supplier said that sales climbed 2.2% to 2.91 billion euros ($3.98 billion) from 2.84 billion euros the previous year. The revenue during the last nine months totalled 9.07 billion euros, which is 2.6% higher compared to the past year.

Valeo has not changed its full-year target of a "slight increase" in operating margin as a proportion of revenue in 2013, "assuming stabilized market conditions in Europe." The auto market in Europe is meant to decrease for a sixth straight year after an 18-month recession in the euro region that concluded in the second quarter.

In a statement, CEO Jacques Aschenbroich said that the group posted “excellent figures” for the original equipment market as well as in the aftermarket. This also is indicative of its capacity for balanced growth. He added that these results are reflective of the gradual entry into production of the high order intake posted by the group in the past three years and the strength of Valeo's growth model.

To be more profitable, Valeo is concentrating on technology that promotes vehicle safety, comfort and pollution reduction. Its products range from windshield wipers and headlights to stop-start ignition systems. In March 2011, Aschenbroich made a promise to boost annual revenue to 14 billion euros by 2015, driven by the sales of fuel-saving parts.

Last September 11, the CEO said in an interview that the depreciation of South American currencies, which include the Argentinian peso and the Brazilian real, could affect Valeo's second-half operating margin. He said that changes in exchange rates and Valeo's structure had a negative impact on its third-quarter revenue of 5.2% and 4.4% respectively. The company changed its structure, prompted by the sale of Access Mechanisms and the acquisition of a controlling interest in Foshan Ichikoh Valeo.

Topics: valeo, china, sales

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