Valeo has recorded first-half net income up 34% to EUR343m (US$381m), while sales rose 15% to EUR7.3bn.

"Valeo's results for the first half of 2015 reflect the hard work carried out by our teams over the past few years to develop a more diverse customer portfolio, strengthen our products' technological advantage and further align the Group's businesses geographically," said Valeo CEO, Jacques Aschenbroich.

"Furthermore, the figures demonstrate the strength of Valeo's growth model in any market conditions.

"Our record order intake - which stands at EUR10.7bn - and the 15% growth in sales reflect the commercial success of technologies developed by the Group for CO2 emissions reduction and intuitive driving.

"This growth was accompanied by a 23% increase in our operating margin, a 34% increase in net income and a doubling of free cash flow. These first-half results put Valeo ahead of schedule in terms of the medium-term plan presented at our Investor Day in London on March 16, 2015."

Valeo is raising its full-year 2015 guidance, as follows: sales growth outperformance in the main production regions, including China; operating margin - as a % of sales - higher than in 2014, with a slight increase in operating margin - as a % of sales - in the second half of 2015 compared to the first half.

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SALES UP 15% TO 7.3 BILLION EUROS

07.27.2015 - STRATEGY & RESULTS

 

SALES UP 15% TO 7.3 BILLION EUROS
OPERATING MARGIN(1) UP 23% TO 7.4% OF SALES
NET INCOME UP 34% TO 4.7% OF SALES
FREE CASH FLOW OF 306 MILLION EUROS
ORDER INTAKE(2) UP 18% TO 10.7 BILLION EUROS
FULL-YEAR 2015 GUIDANCE RAISED

 

 

Jacques Aschenbroich, Valeo's Chief Executive Officer, commented: "Valeo's results for the first half of 2015 reflect the hard work carried out by our teams over the past few years to develop a more diverse customer portfolio, strengthen our products' technological advantage and further align the Group's businesses geographically. Furthermore, the figures demonstrate the strength of Valeo's growth model in any market conditions.
Our record order intake – which stands at 10.7 billion euros – and the 15% growth in sales reflect the commercial success of technologies developed by the Group for CO2 emissions reduction and intuitive driving. This growth was accompanied by a 23% increase in our operating margin, a 34% increase in net income and a doubling of free cash flow. These first-half results put Valeo ahead of schedule in terms of the medium-term plan presented at our Investor Day in London on March 16, 2015."

First-half 2015

  • Order intake of 10.7 billion euros, up 18% (13% like-for-like)
  • Consolidated sales of 7,298 million euros, up 15% (6% like-for-like)
  • Original equipment sales of 6,316 million euros, up 16% (7% like-for-like) outpacing global automotive production by 6 percentage points: 
    - Europe: up 10%(3), 8 percentage points higher than automotive production 
    - Asia: up 6%(3), 4 percentage points higher than automotive production 
        - of which China: up 10%(3), 5 percentage points higher than automotive production 
    - North America: up 4%(3), 1 percentage point higher than automotive production 
    - South America: down 13%(3), 3 percentage points higher than automotive production
  • Aftermarket sales up 8% (up 2% like-for-like)
  • Operating margin(1) up 23% to 538 million euros, or 7.4% of sales
  • Net attributable income up 34% to 344 million euros, or 4.7% of sales
  • Free cash flow(2) of 306 million euros, double the figure for first-half 2014
2015 outlook 

Based on the following assumptions:
  • an increase in global automotive production(4) of between 2% and 3%, including: 
    - between 4% and 5% in Europe excluding Russia 
    - between 4% and 5% in China
  • raw material prices and exchange rates in line with current levels;
Valeo raises its full-year 2015 guidance, as follows: 
  • sales growth outperformance in the main production regions, including China;
  • operating margin(1) (as a % of sales) higher than in 2014, with a slight increase in operating margin (as a % of sales) in the second half of 2015 as compared to the first half.

Original source: http://www.valeo.com/en/journalists/news/sales-up-15-to-7-3-billion-euros-10599.html