Press release – Q3 2019 Sales
Sales up 8% to 4,772 million euros
8 percentage point outperformance versus automotive production
Guidance confirmed, excluding the one-off impact of the General Motors strike in the United States
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented:
“In line with our forecasts, our outperformance accelerated in the third quarter in all of our Business Groups and production regions, including China. This was driven by a customer/product mix that moved back into favorable territory, and by the gradual start of production under contracts in the camera, electrification and lighting segments.
To continue the action plan launched in the first half of the year, we are continuing to roll out our program to reduce costs by more than 100 million euros and further scaling back our capital expenditure by around 200 million euros. This will help improve our operating margin and free cash flow generation in the second half of the year. We confirm our guidance excluding the impact of the General Motors strike.”
Paris, October 24, 2019. Consolidated sales totaled 4,772 million euros in the third quarter, a rise of 8% as reported, or 6% like for like(1).
Original equipment sales totaled 4,046 million euros, up 7% as reported, or 5% like for like(1), with the outperformance accelerating to 8 percentage points in the third quarter (from 3 percentage points in the first quarter and 4 percentage points in the second quarter).
All Business Groups outperformed the market during the period, spurred by the start of production of numerous high-tech innovations (cameras and other ADAS-related products, electrification and lighting systems), mainly in Europe, China and North America, where the Group’s outperformance is accelerating. In addition, Valeo continued to benefit from the balanced alignment of its businesses across the main automotive production regions and the main automaker customers.
Aftermarket sales were down 3% on a like-for-like basis(1) owing to the slowdown in business in Europe, as well as the closure of operations in Iran.
“Miscellaneous” sales, including tooling revenues, rose by a sharp 46%, confirming the hypothesis of a higher outperformance in the fourth quarter than in the first half.
Consolidated sales for the first nine months of 2019 came out at 14,548 million euros, while nine-month original equipment sales (12,266 million euros) slipped 1% like for like(1), beating automotive production by 5 percentage points.
(1) See Financial Glossary, page 7.