Valeo has reported a rise in revenues, but a fall in profits.
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Operating revenues were up 8% to EUR10,033m, while operating income fell 7.8% to EUR307m and net income fell 41.5% to EUR141m.
The sharp drop in the net income result was mainly due to a one-off tax reimbursement in 2004, which boosted the net figure that year by EUR83m.
Operating margin was 3.1% in 2005, down from 3.6% in 2004. This was due to pressure on prices, weak automotive market growth and the increase in the cost of materials.
Revenues were boosted by expansion from the acquisition of Johnson Controls’ engine electronics business and the remaining shares in Zexel Valeo Climate Control.
These acquisitions positively contributed 7%.
