Valeo expect their operating margin to rise in 2011, building on last year’s return to net profitability. Demand for cars is growing strongly in emerging regions like China, Latin America and Russia, offsetting stagnant European markets.
The group forecast 2011 global automotive production growth of 5%, saying European auto production will be flat in 2011, while Asia will show 5% growth, North America will see an 8% rise and South America a 7% increase.
Valeo CEO Jacques Aschenbroich says the supplier’s 2010 results place them ahead of the goals set in early 2010, «underline the pertinence of our strategy (…) the Group’s ability to regularly outperform its main markets, make us confident in our ability to achieve and sustain one of the best levels of return on capital employed in our sector.”
Valeo’s consolidated annual financial statements for the period ending 31 December 2010 show that in the second half of last year, s ales were €4.85bn, up by 20% with an operating margin level at 6.7% of sales. The net income was €197m, right at 4.1% of sales.
Overall in 2010, Valeo announced a record level of order intake of €12.5bn; s ales were €9.63bn, up by 28% with an operating margin at 6.4% of sales. The net income was €365m, 3.8 % of sales.
