Valeo SA, a French car parts supplier, says it would review its medium-term targets in March 2011 after a quicker-than-expected rebound in profitability. Valeo shares surged 3.7 percent to EUR44.84 at 10:20 CET. The Stoxx 600 European Autos Index increased 2.6 percent while the French CAC-40 index edged up 0.11 percent.
Suppliers and carmakers and suppliers are depending on brisk sales in Asia as European markets have slowed down when the scrappage schemes ended.
In March 2010, Valeo established a new strategic plan, saying it aimed for sales of EUR10 billion ($13.2 billion) by 2013 and return on capital invested of about 30 percent in the same time frame.
In October 2010, Valeo tapped its 2010 operating margin target higher and said it saw sales of about EUR9.4 billion for the full year 2010.
An analyst for Natixis, Michael Foundoukidis, says Valeo has been surprised by the much stronger growth than forecast in March.
At the Reuters Global Autos Summit in November 2010, Valeo CEO Jacques Aschenbroich said he did not exclude increasing medium-term targets. [via autonews - sub. required]