Valeo has reported first-half sales up 12.5% to EUR6bn, but earnings per share declined 9% to EUR2.63 and net income was off 9.2%. Valeo was dented by lower vehicle production in Europe, but helped by stronger demand in Asia.
Net income in the first half was EUR218,198m, down 9.2% on last year.
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Global automotive production advanced 9% in first-half 2012. However, Valeo said that this reflects widely contrasting results across the various regions:
- Asia (51% of global automotive production) climbed 15% on the back of further growth in China (up 7%) and a favourable comparison basis for Japan due to the events that hit the country in the first six months of 2011;
- Europe (25% of global automotive production) shrank 5% compared with first-half 2011, which had been boosted by the final phases of automotive stimulus programs in certain countries;
- North America (19% of global automotive production) delivered robust 22% growth spurred by the rally in new vehicle registrations and the return to normal activity levels for Japanese automakers;
- South America (5% of global automotive production) contracted by 8%.
Against this backdrop, Valeo’s consolidated sales were up 12.5% to EUR5.9bn.
Valeo set an objective for full-year 2012 operating margin level (in millions of euros) to be ‘in the same magnitude’ of full-year 2011.
Jacques Aschenbroich, Valeo’s Chief Executive Officer, said:
“Valeo has demonstrated once again the appeal of its innovations and product portfolio, with order intake reaching a record high of 8 billion euros and sales advancing 12.5%. Our operating margin also demonstrated its resilience, up 7.2% in a first half characterized by a 5% fall in European automotive production. Thanks to our strategy of focusing the Group’s activities on developing technologies that reduce CO2 emissions and on expanding our business in high-growth markets in Asia and emerging countries, Valeo is well equipped to pursue its profitable growth.”
