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Q3 2017 Sales

Financial Results

Sales advance 8% in the third quarter of 2017 to 4.3 billion euros

Paris, France, October 24, 2017 – Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented:

“Since the start of the year, sales growth, at 14%, has outpaced automotive production by 5 percentage points on a like-for-like basis in line with our road map, which provides for an acceleration in medium-term growth. This growth is driven by the high order intake recorded over recent years, which is attributable, in particular, to our innovations in vehicle electrification and intuitive driving.

The Valeo Siemens order intake – which amounted to 5.4 billion euros over the first nine months of the year – positions us as the leading player in hybrid and electric vehicles.” 

Third-quarter 2017:

  • Consolidated sales of 4,301 million euros, up 8% (up 5% on a like-for-like basis).
  • Original equipment sales of 3,751 million euros, up 8%, or 6% on a like-for-like basis, outpacing global automotive production by 4 percentage points after taking into account the negative 1.2 percentage point impact of the tense geopolitical context between China and South Korea.
    • Europe: up 5%(1), 1 percentage point higher than automotive production (excluding Russia: 2 percentage points higher)
    • China: up 16%(1), 16 percentage points higher than automotive production
    • Asia excluding China: up 9%(1), 1 percentage point higher than automotive production after taking into account the negative impact of the tense geopolitical context between China and South Korea
    • North America: up 1%(1), 9 percentage points higher than automotive production
    • South America: up 19%(1), 1 percentage point lower than automotive production.
  • Aftermarket sales up 7% (up 2% on a like-for-like basis).

In the first nine months of the year:

  • Consolidated sales of 13,765 million euros, up 14% (up 8% on a like-for-like basis).
  • Original equipment sales of 11,986 million euros, up 13%, or 8% on a like-for-like basis, outpacing global automotive production by 5 percentage points after taking into account the negative 1.2 percentage point impact of the tense geopolitical context between China and South Korea.
  • Aftermarket sales up 12% (up 4% on a like-for-like basis).

Finalization of the acquisition of FTE Automotive and Valeo-Kapec joint venture:

  • Having been authorized by the European Commission, the FTE Automotive acquisition should be finalized in late October 2017, subject to approval from the Turkish antitrust authorities.
  • The formation of the Valeo-Kapec joint venture should be completed by the end of 2017, as Valeo has received clearance from the relevant antitrust authorities.

2017 outlook

The growth forecast for global automotive production has been revised slightly upwards to around 2%.

Valeo confirms its objectives for 2017:

  • sales growth outperforming the market by more than 5 percentage points;
  • a slight increase in operating margin(2) (as a % of sales and before acquisitions) despite the increase in raw material prices and the situation in South Korea.

(1)Like for like (constant Group structure and exchange rates).

(2) Including share in net earnings of equity-accounted companies, see Financial Glossary, page 9 (PDF).

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