VALEO (EPA:FR) Valeo reports 14% growth in consolidated sales for third quarter
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20/10/2011 17:59
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Press release
24.11
Valeo reports 14% growth in consolidated sales for third quarter 2011
* Third quarter 2011
- 14% growth in consolidated sales (12% on a like-for-like basis(1)) to 2,662
million euros
- 17% growth in original equipment sales (14% on a like-for-like basis) to
2,262 million euros
* Third quarter 2011 and nine months ended September 30, 2011
- Original equipment outperformed the market in all Business Groups and main
production regions
* Outlook
- 2011 guidance confirmed, i.e., to achieve full-year operating margin rate
slightly higher than that of 2010
Paris, France, October 20, 2011 - Following the meeting of its Board of
Directors today, Valeo released its sales for the third quarter 2011:
In millions of euros Third quarter* Nine months ended
September 30*
2010 2011 % 2010 2011 %
change change
sales sales
Total
of which: 2,342 2,662 +14% 7,129 7,996 +12%
Original equipment 1,929 2,262 +17% 5,886 6,772 +15%
Aftermarket 359 336 -6% 1,082 1,055 -2%
Miscellaneous 54 64 +19% 161 169 +5%
* Unaudited
(1) Constant Group structure and exchange rates.
Jacques Aschenbroich, Valeo's Chief Executive Officer, stated:
"Thanks to our robust organic growth and the integration of Niles, Valeo
reported 17% growth in third quarter original equipment sales (14% on a
like-for-like basis), outperforming automotive production in all of our
businesses and main production regions for the eighth straight quarter. This
dynamic performance once again underscores the success of Valeo's strate gic
focus these past two years on developing products that reduce CO2 emissions and
on expanding business activities in emerging markets and Asia, a strategy that
has also been reflected in the acquisition of the Japanese automotive supplier,
Niles. This acquisition is in line with our objective of boosting our activities
in Asia, a region that accounted for 25% of our original equipment sales in the
third quarter of 2011."
In the third quarter 2011 and the first nine months of the year, global
automotive production remained robust in all regions. Production advanced 4%
compared to the first nine months of 2010.
In Japan, automotive production began to turn around, declining by 5% in the
third quarter compared to a drop of 31% in the first half of the year. For the
first nine months of the year, automotive production in Japan fell 21%.
Consolidated sales totaled 2,662 million euros in the third quarter of 2011, up
14% (12% on a like-for-like basis). In the first nine months of the year,
consolidated sales came in at 7,996 million euros, representing an increase of
12% on both a reported and like-for-like basis.
* Changes in Group structure in the third quarter represented 4.2% of
consolidated sales, including 106 million euros corresponding to the
contribution of Niles.
* Original equipment sales (85% of consolidated sales) came out at 2,262
million euros in the third quarter, up 17% (14% on a like-for-like basis),
and 6,772 million euros in the first nine months of the year, up 15% (14%
on a like-for-like basis).
* Original equipment sales in Asia represented 25% of total original
equipment sales in the third quarter, further to the acquisition of Niles.
* Aftermarket sales (13% of consolidated sales) amounted to 336 million euros
in the third quarter, down 3% on a like-for-like basis, and stood at 1,055
million euros in the first nine months of the year, edging up 1%
like-for-like.
Original equipment sales outperformed the market in all the main automotive
production regions
Original Third quarter* Nine months ended September 30*
equipment
In millions 2010 2011 % % change 2010 2011 % % change
of euros change automotive change automotive
OE production*** OE production***
sales** sales**
Europe 1,057 1,188 +13% +6% 3,438 3,908 +14% +8%
Asia 420 568 +13% +3% 1,209 1,372 +7% -1%
of which
China 160 186 +22% +4% 461 504 +14% +4%
of which
Japan 129 221 -8% -5% 364 409 -18% -21%
North
America 288 326 +23% +8% 776 966 +33% +9%
South
America 177 180 +4% +7% 496 526 +5% +9%
* Unaudited
** Like-for-like
*** JD Power estimates
Strong sales momentum in the main production regions, combined with a positive
geographic mix enabled the Group to outperform global automotive production for
the eighth straight quarter (outperformance of 9 percentage points in the third
quarter 2011).
Valeo also grew faster than the market in the main automotive production regions
during the first nine months of the year:
· In Europe (58% of original equipment sales), the Group reported original
equipment sales growth of 14% on a like-for-like basis, 6 percentage points
higher than the market.
· In Asia (20% of original equipment sales), the Group recorded original
equipment sales growth of 7% on a like-for-like basis, 8 percentage points
higher than the market.
· In North America (14% of original equipment sales), the Group posted
original equipment sales growth of 33% on a like-for-like basis, 24
percentage points higher than the market.
All Business Groups contributed to the growth effort
Sales Third quarter* Nine months ended September 30*
equipment
In millions 2010 2011 % % change 2010 2011 % % change
of euros change OE change OE
sales** sales** sales** sales**
Comfort &
Driving
Assistance
Systems 418 567 +12% +15% 1,266 1,537 +14% +16%
Powertrain
Systems 625 743 +17% +21% 1,969 2,292 +18% +21%
Thermal
Systems 735 777 +8% +8% 2,182 2,336 +8% +8%
Visibility
Systems 547 597 +9% +13% 1,733 1,901 +10% +14%
* Unaudited
** Like-for-like
The Business Groups all enjoyed buoyant growth momentum, with original equipment
sales rising faster than global automotive production (up 4% in the first nine
months of the year).
The Powertrain Systems, Comfort & Driving Assistance Systems and Visibility
Systems Business Groups outperformed global automotive production by 17, 12 and
10 percentage points respectively, thanks in particular to market share gains in
new technologies (Stop-Start, torque converter, driving assistance, cameras,
radars, innovative lighting systems, etc.). The Thermal Systems Business Group,
which has a strong presence in Japan, was more directly impacted by the drop in
production in this country.
The Group also achieved excellent results with its German customers, which
accounted for 29% of total original equipment sales for the first nine months of
the year, compared with 27% in the same year-ago period.
Highlights
At the IAA Frankfurt motor show held on September 13-25, 2011, Valeo presented
several innovations that will fuel the Group's development in the coming years,
including:
- Park4U(r) Remote: this fully automatic parking assistance system maneuvers the
vehicle into a parking space without any input from the driver. It can be
activated either from inside the vehicle or remotely, using a smartphone;
- Affordable Hybrid: an electrification solution for the powertrain. The
Affordable Hybrid architecture consists of a motor-generator and low-voltage
electronics (48V). By combining the Stop-Start function, regenerative braking
and engine assistance, this system offers the advantages of a hybrid for a
very low cost.
Other information
During the third quarter, Valeo concluded, in two tranches, the buyback of
1,228,000 shares for a total of 40.9 million euros. These shares were allocated
to cover stock option purchase plans.
Outlook
The automotive production growth forecast for 2011 is consistent with the
estimates published by Valeo. In this context, and despite the high price of
certain raw materials, particularly rare earths, in the second half of the year,
Valeo confirms its 2011 guidance, i.e., to achieve full-year operating margin
rate slightly higher than that of 2010.
Financial calendar
Full-year 2011 results: February 22, 2012 prior to stock market opening
Valeo is an independent industrial Group fully focused on the design, production
and sale of components, integrated systems and modules for the automotive
industry, mainly for CO2 emissions reduction. Valeo ranks among the world's top
automotive suppliers. The Group has 125 plants, 21 research centers, 40
development centers, 10 distribution platforms and employs 67,900 people in 28
countries worldwide.
For more information, please contact:
Media relations Thierry Lacorre, Investor Relations
Phone: +33 1.40.55.37.18 Phone: +331.40.55.37.93
For more information about the Valeo Group and its activities, please visit our
web site www.valeo.com
Safe Harbor Statement
Statements contained in this report, which are not historical fact, constitute
"Forward-Looking Statements". Actual results may differ materially due to
numerous important factors. Such factors include the cost and timing of
implementing restructuring actions, the company's ability to generate cost
savings or manufacturing efficiencies to offset or exceed contractually or
competitively required price reductions, conditions in the automotive industry,
and certain global and regional economic conditions. The company assumes no
responsibility for any analysts' estimates and any other information prepared by
third parties which we may reference in this report. Valeo does not intend or
assume any obligation to review or confirm analysts' estimates or to update any
forward-looking statement to reflect events or circumstances after the date of
this report.
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