We are using cookies to help us give you the best experience of our site. By clicking "I Accept" on this banner, you consent to the storing of cookies on your device to enhance site navigation and analyze site usage unless you have disabled them. Click here to know how to disable it.
Financial Results |
| 5 min
Press release – H1 2019 Results
Valeo stays focused on its strategic goals and confirms its 2019 objectives
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
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.”
Paris, July 24, 2019, Valeo’s consolidated sales came to 9,776 million euros in the first half, down 1% compared with the prior-year period.
Original equipment sales totaled 8,220 million euros, down 3% on a like-for-like basis(2) and representing a 4 percentage point outperformance versus global automotive production. The Group’s outperformance accelerated over the first half (from 3 percentage points in the first quarter to 4 percentage points in the second quarter). Sales were affected in particular by the strong decline in automotive production in China, which fell 16% (IHS/CPCA(3) estimates) in the first half.