Valeo has posted first half operating margin of EUR514m or 5.3% of sales, up 0.5 percentage points, while net income was EUR162m.
“In an automotive market that declined 7% in the first half, we demonstrated our ability to accelerate our outperformance, which came out at four percentage points, and improve our profitability following the low point recorded in second-half 2018,” said Valeo chairman and CEO, Jacques Aschenbroich.
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“Despite the overall market decline of around 4% in 2019, all of the actions we rolled out to achieve a structural reduction in costs and capital expenditure enable us to confirm our operating margin (excluding share in net earnings of equity-accounted companies) objective, based on an operating margin of at least 6.3% in the second half and continued free cash flow generation.
“Valeo therefore confirms the strengthening of its strategic positioning in high-growth segments and the capacity to finance its dividend policy.”
All Business Groups outperformed the market during the period, driven by the start of production on innovations (cameras and other ADAS-related products, electrical systems and LED lighting systems), mainly in Europe and North America.
Valeo confirms its guidance despite a stronger than anticipated decline in the automotive market, which is expected to contract by around 4% in 2019 (versus a previously forecast decrease of between 1% and 0%).
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