- ORDER INTAKE SURGED 25% TO 9.1 BILLION EUROS
- SALES CAME IN AT 6.3 BILLION EUROS, UP 10% LIKE FOR LIKE (7% AS REPORTED)
- OPERATING MARGIN(1) UP 15% TO 442 MILLION EUROS, OR 7.0% OF SALES
- NET INCOME UP 38% TO 262 MILLION EUROS, OR 4.1% OF SALES
- FREE CASH FLOW OF 153 MILLION EUROS, UP 15%
Jacques Aschenbroich, Valeo’s Chief Executive Officer, stated:
“In the first half of 2014, orders booked by the Group totaled 9.1 billion euros, up 25% on first-half 2013, once again confirming the Group’s high organic growth potential. Consolidated sales grew by 10% on a like-for-like basis as did the original equipment segment, which outpaced global automotive production by 7 percentage points. Valeo achieved an operating margin including the share in net earnings of equity-accounted companies of 7.0% of sales. Thanks to the commitment of all our employees, Valeo confirms its ability to achieve an operating margin in excess of 7%.”
First-half 2014 results
- Order intake(2) up 25% on first-half 2013 to 9.1 billion euros, confirming the Group’s high growth potential
- Consolidated sales of 6,347 million euros, up 10% on a like-for-like basis (7% as reported)
- Original equipment sales amounted to 5,432 million euros, up 10% on a like-for-like basis, outpacing global automotive production by nearly 7 percentage points:
– China: up 36%, outpacing automotive production by 25 percentage points
– Asia excluding China: up 10%, outpacing automotive production by 8 percentage points
– Europe: up 10%, outpacing automotive production by 6 percentage points
– North America: up 6%, outpacing automotive production by 3 percentage points
– South America: down 13%, versus a 17% fall in automotive production - Operating margin(1) up 15% to 442 million euros, or 7.0% of sales
- Net income up 38% to 262 million euros, or 4.1% of sales
- Free cash flow(2) of 153 million euros
– Net debt (2) of 525 million euros after the dividend payment, the acquisition of Osram’s 50% stake in joint venture Valeo Sylvania and the share buyback program.
2014 outlook
Based on the following assumptions:
- global automotive production up approximately 3% including an increase in automotive production in Europe of around 2%, and
- raw material prices and currencies in line with current levels;
Valeo has set the following objectives for 2014:
- sales growth outperformance in the main production regions,
- operating margin(1) slightly higher than 7% of sales.
(1) Including share in net earnings of equity-accounted companies, see Financial Glossary, page 10
(2) See Financial Glossary, page 10
