Valeo set out new targets for revenue and profitability due to Asian demand

Article by Christian Andrei, on March 11, 2011

Valeo S.A. established new targets for profitability and revenue as it believes that new technology and expansion in Asia would help it outpace automobile production growth in coming years.

The company said it would target revenue of around EUR14 billion ($19.4 billion) in 2015, an operating margin rate above 7 percent and return on capital employed (ROCE) above 30 percent.

Valeo sees sales outside Africa and Europe to account for over 50 percent of the total in 2015, compared with 40 percent in 2010.

Automakers and their suppliers rely on fast-growing emerging markets and new green technologies like electric vehicles and hybrids to boost their sales as mature markets struggle for growth. Natixis analyst Michael Foundoukidis stated that such “ambitious but realistic targets should please the market.”

The targets assume growth in global automobile output of about 5 percent annually in 2011 through 2015, including about 4.4 percent annually in Europe and Africa, 4.7 percent in North America, 5.3 percent in South America and 5.8 percent in Asia.

Based on its record EUR12.5 billion order intake in 2010, Valeo said it was “confident” it could outperform automobile production growth by about 3 percent a year through the next four years. The company also said that in 2011, it could even that record level once more.

Topics: valeo

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016