Press release – Q3 2021 Sales
Valeo displays sound financial resilience in an environment marked by the semiconductor shortage:
- Sales up 15% over the first nine months of 2021, with third-quarter sales of 3,964 million euros, down1 10%
- Aftermarket business sales up1 26% over the first nine months and up 18% in the third quarter
- Automotive production up 11% over the first nine months despite an 18% contraction in the third quarter
- Original equipment sales outperformance in all production regions
- Tightening of 2021 EBITDA margin objective to upper end of range at 13.0% to 13.4%, compared with 12.8% to 13.4% previously
- Confirmation of free cash flow generation objective of between 330 and 550 million euros
1 Like for like (constant Group structure and exchange rates).
Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented:
“I’d like to thank all of the Valeo teams who worked hard to supply all of our customers without the slightest interruption, despite the semiconductor shortage, and to continuously adapt our production facilities to the extreme volatility of automaker programs.
In addition, the strict management of our costs, price adjustments obtained from our customers, and the excellent performance of the aftermarket business enable us to tighten, to the upper end of the range, our 2021 EBITDA margin objective, which now stands at between 13.0% and 13.4% of sales, an improved margin compared to 2019 despite the 16% decline in automotive production in the year to September. We also confirm our free cash flow generation objective of between 330 and 550 million euros.
We are also confident in our ability to achieve our 2021 CO2 emissions reduction objective, and therefore confirm our long-term sustainable development commitments.”