Financial Results | 24 Jul, 2019 | 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.



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