Valeo Announces Third Quarter Earnings Reaffirms Annual Profit Target

French component supplier Valeo SA announced last week’s financial report for the third quarter of this year and reiterated the company’s fiscal revenue targets throughout the year.

In the third quarter of this year, Valeo’s revenue increased by 12% year-on-year to 2.66 billion Euros (approximately US$3.7 billion), of which sales of original accessories increased by 14% year-on-year to 2.62 billion Euros (approximately US$3.64 billion), and was acquired in July of this year. Niles, a Japanese automotive steering system supplier, brought Valeo a turnover of 106 million euros (about 150 million U.S. dollars) in the third quarter of this year.

In the first nine months of this year, Valeo’s revenue increased by 12% year-on-year to 8 billion euros (about 11.1 billion US dollars), of which sales of original equipment increased by 15% year-on-year to 6.77 billion euros (about 9.4 billion US dollars). Valeo said that despite the increase in raw material prices in the second half of this year, the company’s full-year profit margin target is 6.4%.

Valeo CEO Jacques Aschenbroich said that the company does not have very accurate forecasts for next year's production. It only predicts that the North American and Asian markets will achieve sustained growth. The Latin American market slows down, and the European market is in a grim situation. But regardless of market conditions, Valeo has been fully prepared.

Valeo is committed to the design, development, production and sales of automotive parts, systems and modules. The company's business involves the original supporting business and after-sales business. It is the world's leading supplier of automotive parts and components and provides supporting facilities for all major auto factories in the world.