China helps Valeo increase its sales in the third quarter

Article by Christian A., 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.

If you liked the article, share on:

Topics: valeo, china, sales

Comments

Recommended

It has been nearly eight years since Toyota entered a new era of sports cars when it officially unveiled the production version of the Toyota 86 – also known as...
by - February 27, 2019
The new Audi TT RS – yes, the top version of the German carmaker’s facelifted TT model series – is now officially here. If you could remember, the range-topping TT...
by - February 18, 2019
Nearly half a year ago when McLaren Automotive unveiled the McLaren 600LT Coupe, the British carmaker is now introducing a version that lets its passengers enjoy the thrill of an...
by - January 25, 2019
German carmaker Volkswagen is now making the latest evolution of the new Volkswagen Golf GTI -- the new Golf GTI TCR. First unveiled as a concept at the annual GTI...
by - January 24, 2019
It has been three and a half years since BMW unveiled the sixth generation of the BMW 7 Series. Thus, it is really about to give the 7 Series a...
by - January 17, 2019