Valeo swung to net profit in 2010. The group recorded a net profit of EUR365m, compared with a 2009 net loss of EUR153m.
Second half 2010 saw sales of EUR4,845mn, up by 20%, operating margin level at 6.7% of sales and net income of EUR197mn, at 4.1% of sales.
Full year 2010 saw sales of EUR9,632mn, up by 28%, operating margin level at 6.4% of sales, net income Group share of EUR365mn, or 3.8 % of sales, net earnings per share at 4.86, ROCE higher than 32%, strong generation of net cash flow of EUR440mn, decrease in net debt of 444mn, at 278mn at December 31, 2010, record level of order intake of 12.5 billion and proposed payment of dividend of 1.20 per share.
2011 Outlook is promising with a forecast growth of global automotive market of 5%.
Jacques Aschenbroich, Valeo’s Chief Executive Officer, declared:, “Our 2010 results, with an operational performance ahead of the objectives set in the plan presented in early 2010, underline the pertinence of our strategy. Moreover, our medium-term growth prospects, based on a record order intake level, the rising importance of innovative products developed by Valeo, and the Group’s ability to regularly outperform its main markets, make us confident in our ability to achieve and sustain one of the best levels of return on capital employed in our sector.”
Valeo reported stronger sales in the Asian region (+36% for the full-year) and Asian sales accounted for 19% of the Group’s passenger car original equipment sales versus 13% before the crisis. Sales in Europe and Africa accounted for 60% versus 67% before the crisis.