4 percentage point outperformance versus automotive production, accelerating over the first half
Operating margin(1) of 514 million euros, or 5.3% of sales, up 0.5 percentage points compared with second-half 2018
Net income(2) of 162 million euros, or 1.7% of sales, after non-recurring expenses of 30 million euros
Free cash flow(2) generation of 237 million euros, up 90% compared with second-half 2018, corresponding to a cash conversion rate(2) of 19% Order intake(2) of 11.1 billion euros, representing 1.3 times original equipment sales
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented: “In an automotive market that declined 7% in the first half, we demonstrated our ability to accelerate our outperformance, which came out at 4 percentage points, and improve our profitability following the low point recorded in second-half 2018.
“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.”
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SOURCE: Valeo
