Valeo has reported 1.1% growth in consolidated sales on a like-for-like basis for the first quarter of 2013, despite a 9% drop in automotive production in Europe.

"Valeo's performance in the first quarter once again proved the strength of our strategy, which is based on innovations and the expansion of our business in Asia and emerging countries," said Valeo CEO, Jacques Aschenbroich.

"On the back of the ramp-up of our projects and an excellent performance in China and North America, the Group exported 1.1% growth in like-for-like sales and outpaced the market in the main automotive production regions, offsetting particularly strong economic headwinds in Europe."

First-quarter 2013 consolidated sales remained stable at EUR3.04bn, up 1.1% on a like-for-like basis, with original equipment sales coming in at EUR2.56bn, stable on a like-for-like basis.

The impact of the marked downturn in the European market was offset by above-market growth in the main automotive production regions: up five percentage points in Europe, up eight percentage points in North America and up seven percentage points in China.

Aftermarket sales totalled EUR382m, up 3.5% on a reported basis and 4.2% like-for-like.

Show the press release

Valeo reports 1.1% growth in consolidated sales on a like-for-like basis1 for
first-quarter 2013 despite a 9% drop in automotive production in Europe
Jacques Aschenbroich, Valeo's Chief Executive Officer, stated:
"Valeo's performance in the first quarter once again proved the strength of our strategy, which is
based on innovations and the expansion of our business in Asia and emerging countries. On the back
of the ramp-up of our projects and an excellent performance in China and North America, the Group
reported 1.1% growth in like-for-like sales and outpaced the market in the main automotive
production regions, offsetting particularly strong economic headwinds in Europe."
 First-quarter 2013
 Consolidated sales remained stable at 3,039 million euros, up 1.1% on a like-for-like
basis
 Original equipment sales came in at 2,575 million euros, stable on a like-for-like basis.
The impact of the marked downturn in the European market was offset by abovemarket
growth in the main automotive production regions:
- up 5 percentage points in Europe
- up 8 percentage points in North America
- up 7 percentage points in China
 Aftermarket sales totaled 382 million euros, up 3.5% on a reported basis and 4.2% likefor-
like
 2013 outlook confirmed
At this time, Valeo confirms its guidance for 2013 as published last February
1 Constant Group structure and exchange rates.
2
Paris, France, April 24, 2013 – Following the meeting of its Board of Directors today, Valeo released
its sales figures for the first quarter of 2013:
Global automotive production down 1%
In the first quarter of 2013, global automotive production fell 1%, reflecting widely contrasting
results across the various regions:
Change
in Q1 2013*
Asia and Middle East +1%
Europe & Africa -9%
North America +1%
South America +9%
Total -1%
* LMC estimates
- European automotive production (down 9%) was impacted by the economic crisis and the
resulting fall in new vehicle registrations.
- Global automotive production declined slightly despite a strong performance in Asian and
American markets.
Sales up 1.1% on a like-for-like basis despite economic headwinds in Europe
Sales increased 1.1% on a like-for-like basis: changes in exchange rates had a negative impact of
1.4% while changes in Group structure had a positive 0.5% impact.
The Group's consolidated sales came to 3,039 million euros, in line with first-quarter 2012.
In millions of
euros
Q1 2012* Q1 2013* Change Change**
Total 3,033 3,039 +0.2% +1.1%
of which:
Original
equipment
2,602 2,575 -1.0% 0.0%
Aftermarket 369 382 +3.5% +4.2%
Miscellaneous 62 82 +32.3% +34.2%
* Unaudited
** Like-for-like
Original equipment sales (86% of total sales) remained stable on a like-for-like basis, with the
Group's above-market performance in the main automotive production regions offsetting
particularly strong economic headwinds in Europe.
Aftermarket sales (12% of total sales) advanced 4.2% like-for-like on the back of the performance of
the Group's businesses in Asia and emerging countries as well as in Europe.
Miscellaneous sales (2% of total sales) benefited from significant increases in tooling revenues
resulting from the launch of new production lines, climbing 34.2% like-for-like.
3
Foreign customers represented 82% of original equipment sales, with German and
Asian customers combined accounting for 55%
The share of German customers during the first quarter remained stable at 29% of original
equipment sales, while the share of Asian customers declined to 26% (versus 29% in first-quarter
2012), reflecting Japanese customers' high level of activity in first-quarter 2012. American customers
represented 20% of original equipment sales (versus 17% in the same year-ago period), in the
process overtaking French customers who accounted for 18% of original equipment sales.
Above-market growth in original equipment sales in the main production regions
enabled Valeo to offset the marked economic downturn in Europe
Valeo's original equipment sales remained stable on a like-for-like basis, standing at one percentage
point higher than global automotive production (down 1%).
In millions of euros Q1 2012* Q1 2013*
Change OE
sales**
Change
automotive
production***
Total 2,602 2,575 +0% -1%
of which:
Europe 1,404 1,348 -4% -9%
Asia 624 628 +2% +1%
of which China 229 282 +20% +13%
of which Japan 202 140 -22% -12%
North America 422 460 +9% +1%
South America 152 139 +3% +9%
* Unaudited
** Like-for-like
*** LMC estimates
Valeo's performance in each of its production regions over the first three months of the year was as
follows:
- In Europe, Valeo’s like-for-like original equipment sales slipped 4% whereas automotive
production retreated 9%. The Group therefore reported an excellent performance,
outpacing the market by 5 percentage points, driven by the appeal of its portfolio of
high-tech products and a favorable customer mix.
- In Asia, original equipment sales were up 2% on a like-for-like basis, beating the market by
1 percentage point. This performance is attributable to a sharp increase in original
equipment sales in South Korea, China and India (with growth outpacing automotive
production by 6, 7 and 15 percentage points, respectively) and an unfavorable customer mix
in Japan.
- In North America, like-for-like original equipment sales climbed 9%, once again outpacing
automotive production (up 1%) thanks to a favorable customer mix, reflecting a strong
performance by American customers.
- In South America, like-for-like original equipment sales advanced 3%, versus a 9% increase
in automotive production, standing at 6 percentage points lower than the market on the
back of a low order intake in 2006 and 2007 and an unfavorable customer mix.
4
Share of original equipment sales produced in Asia and emerging countries
remained stable at 53%
In the first quarter of 2013, Valeo continued to rebalance its businesses:
- the share of original equipment sales produced in Western Europe decreased to 38% (versus
40% in the same year-ago period);
- the share of original equipment sales produced in Asia and emerging countries (including
Eastern Europe) remained stable at 53%.
Strong growth for the Visibility Systems Business Group
As was the case for the consolidated Group, the sales performance for each Business Group
reflected the specific geographic and customer mix and the relative weighting of the aftermarket in
their activity as a whole.
Business Group sales
In millions of euros
Q1 2012* Q1 2013*
Change
sales
Change OE
sales**
Comfort & Driving Assistance
Systems 657 629 -4% -3%
Powertrain Systems 855 833 -3% -2%
Thermal Systems 864 824 -5% -3%
Visibility Systems 685 782 +14% +10%
* Unaudited
** Like-for-like
Thanks to the success of the Visibility Systems Business Group’s innovative Lighting Systems and the
ramp-up of new projects, sales for the Business Group grew 14% to 782 million euros.
5
2013 outlook confirmed
Given that business levels observed during first-quarter 2013 are consistent with the scenario
outlined at the start of the year, i.e.:
- decline in automotive production in Europe in the region of 4%,
- growth in global automotive production in the region of 1%,
- raw material prices in line with 2012 levels;
At this time, Valeo confirms its objectives for 2013:
- sales growth higher than the market in the main production regions,
- assuming an upturn in the European market in the second half of 2013, operating margin in
line with 2012 (in millions of euros) despite a decline in the first half of the year as a result of
market conditions.
Highlights
On April 2, 2013, Valeo announced that, for technical reasons, the closing regarding the sale of the
Access Mechanisms business to Japan-based U-Shin did not occur as initially expected at the end of
March, but should take place within a short period of time.
On January 29, 2013, Moody's Rating Services confirmed its "Baa3/P3" long- and short-term
corporate credit ratings for Valeo with a stable outlook.
Upcoming event
Annual Shareholders’ Meeting: June 6, 2013.
First-half 2013 results: July 30, 2013.
Valeo is an independent industrial Group fully focused on the design, production and sale of
components, integrated systems and modules for the automotive industry, mainly for CO2 emissions
reduction. Valeo ranks among the world's top automotive suppliers. The Group has 128 plants,
21 research centers, 40 development centers, 12 distribution platforms and employs 75,800 people in
29 countries worldwide.
For more information, please contact:
Media relations Thierry Lacorre
Tel.: +33 (0)1 40 55 21 75/+33 (0)1 40 55 37 18 Investor Relations Director
Tel.: +33 (0)1 40 55 37 93
For more information about the Valeo Group and its activities, please visit our website
www.valeo.com

Original source: http://www.valeo.com/medias/upload/2013/04/8260/valeo-reports-1-1-growth-in-consolidated-sales-on-a-like-for-like-basis-for-first-quarter-2013.pdf