Valeo has reported a first-half net attributable loss of EUR1.22bn (US$1.41bn), which includes EUR622m in non-recurring items.
“With the COVID-19 crisis, we are witnessing both a growing preference for individual mobility and accelerating demand for safer, electric mobility all over the world,” said Valeo chairman and CEO, Jacques Aschenbroich.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
“This trend further demonstrates the relevance of our strategic choices. Protecting all of our employees has been of the utmost importance during this pandemic. This is the rationale behind the safety protocol – which is mandatory and audited – put in place at all of the Group’s sites.
“Measures have also been taken on an exceptional scale to ensure the continuity of our operations going forward, including cost savings of EUR570m and a reduction of EUR384m in investments and gross inventories. The Group also recognised EUR622m euros in one-off charges.
“I would like to thank all of our staff for their extraordinary, unwavering commitment and reiterate my confidence in the future of our Group in a post-COVID world which is proving the relevance of the strategy we have pursued over the past few years.”
The French supplier outlined several highlights of the first half:
- Top priorities are to protect employees and to resume operations as quickly as possible
- Stronger liquidity position, with EUR2.3bn available in undrawn credit lines and EUR2.1bn in net cash and cash equivalents at 30 June, 2020
- Strong outperformance in all automotive production regions; sales of EUR7.06bn (down 28%) despite a 35% decline in the market
- Costs reduced by EUR570m and investments and gross inventories by EUR384m
- Negative operating margin of EUR840m affected by one-off charges of EUR457m
- One-off charges of EUR622m linked mainly to the COVID-19 crisis
- Free cash flow consumption of EUR1.05bn
