Consolidated sales up 3% to 4.9 billion euros in first-quarter 2018
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented:
“In line with the medium-term growth plan presented in London in February 2017, Valeo’s organic growth will accelerate in 2018 and 2019, supported by our order intake, especially in the fields of vehicle electrification and intuitive driving.
Given the strong basis of comparison in 2017, when organic growth reached 13% in the first quarter, we recorded limited organic growth in first-quarter 2018, with reported growth coming in at 3%, and like-for-like growth at 1%. However, taking into account the acquisitions carried out in 2017, and at constant exchange rates, Valeo’s growth came to 8.5% for the period.
Moving forward, our organic growth will accelerate sharply over the rest of the year, to between 5% and 6% in the second quarter, and around 7% in the second half.”
For the sake of consistency, the figures are presented under the same accounting principles as in 2017 (i.e., before the application of IFRS 15). The impact of IFRS 15 (0.7% of sales) is presented on pages 6 and 7 of this document.
- Consolidated sales of 4,917 million euros, up 3% (up 1% on a like-for-like basis(1))
- Original equipment sales of 4,275 million euros, up 2% (up 1% on a like-for-like basis(1)):
|Original equipment sales
(in millions of euros)
|2018||2017||LFL* change||Outperformance vs. LMC**||Outperformance vs. IHS***|
|Europe & Africa||2,081||2,001||+1%||-2 pts||+1 pt|
|Asia, Middle East & Oceania||1,296||1,189||+1%||0 pts||+2 pts|
|of which China||551||564||-3%||-2 pts||0 pts|
|excluding China||745||625||+4%||+1 pt||+3 pts|
|North America||796||895||-2%||+1 pt||+1 pt|
|South America||102||89||+29%||+18 pts||+17 pts|
|TOTAL||4,275||4,174||+1%||0 pts||+ 2 pts|
* Like for like (constant Group structure and exchange rates) (1)
** Based on LMC automotive production estimates released on April 10, 2018.
*** Based on IHS automotive production estimates released on April 16, 2018.
- Aftermarket sales up 7% (up 3% on a like-for-like basis(1))
Outlook: February 2018 guidance confirmed
Based on the following assumptions:
- an increase in global automotive production of 1.5% in 2018;
- raw material prices and exchange rates in line with those of February 2018.
The Valeo Group confirms its objectives:
- nominal sales growth of around 8% for 2018;
- like-for-like growth in original equipment sales of:
- between 5% and 6% in the second quarter,
- around 5% in 2018, accelerating in the second half ahead of expected double-digit growth in 2019;
- in 2018, operating margin excluding share in net earnings of equity-accounted companies (as a % of sales) in line with 2017.
Valeo Siemens eAutomotive:
- Valeo Siemens eAutomotive had a strong order intake of 6.1 billion euros in 2017 and a cumulative 10 billion euros at end February 2018;
- to accommodate its fast-paced expansion going forward, Valeo Siemens eAutomotive will bear the costs required to push ahead with ongoing projects and structure its organization. Accordingly, the “Share in net earnings of equity-accounted companies” caption will have an impact of around 0.2 points on Valeo’s statement of income in 2018.
- by 2022, Valeo Siemens eAutomotive should be delivering sales of more than 2 billion euros and a similar EBITDA margin (as a % of sales) to that of Valeo.
(1)See Financial Glossary, page 9.