Valeo has increased its full year guidance for operating margins and production levels, following the release of its third quarter results.

The company said that third quarter consolidated sales jumped 22% (16% on a like-for-like basis) to EUR2,342m.

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The original equipment division reported sales of EUR1,929m (82% of consolidated sales), an increase of 17% (like-for-like) and outperformed global automotive production by 5% for the period.

During the same period, aftermarket sales (15% of consolidated sales) amounted to EUR359m up by 14% (like-for-like) versus the third quarter 2009.

Jacques Aschenbroich, Valeo’s CEO, said: “Valeo has shown, since the beginning of the year, original equipment sales growth higher than that of global automotive output in its main regions of production. This performance has been made possible by the implementation of our return to organic growth strategy, based on products designed to reduce CO2 emissions and on accelerated investment in Asia and in emerging countries.

“As demonstrated by our new 2010 operating margin level objective, we are confident in Valeo’s ability to meet and sustain the objectives we have set within the framework of our 2013 strategic plan.”

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Looking ahead, the company said that it had revised upwards its automotive production forecast for 2010, with Europe looking at 10% growth; Asia 22%; North America 34% and South America 12%. This equals a rise of 19% of global automotive production for the full year.

“Based on this scenario, and thanks to the group’s outperformance on its main markets, to controlled costs and to the deployment of its new organisation based on four business groups, Valeo again revises upwards its 2010 operating margin level guidance,” the company said.

It said it was now expecting second half sales in line with those of the first half and sales higher than EUR9.4bn for the full year and a second half operating margin level slightly higher than that of the first half.

It added that it also estimated a generation of cash flow of around EUR100m in the second half, giving a free cash flow of around EUR400m for the full year (net cash flow generation of around EUR340m).

For the full Valeo statement, click here.