Valeo Sales Up, Profits Down in “Challenging” Year
Acquisitions helped boost revenue for Valeo SA in 2018. But earnings plunged because of slow sales growth in China and emission-test disruptions to production in Europe.
The French parts supplier reports its consolidated sales grew 4% to €19.3 billion ($21.9 billion) last year. But operating and net profit fell, respectively, by 26% to €1.1 billion ($1.2 billion) and 38% to €546 million ($619 million).
Valeo says its new-order volume in 2018 shrank 15% to €28.6 billion ($32.4 billion), including results from its eAutomotive venture with Siemens AG. Net debt expanded 22% to €2.2 billion ($2.5 billion).
The company predicts global auto production will be flat or down 1% this year, as a downturn in the first half is offset by modest growth in the second half. But Valeo predicts its own sales will outpace the market, thanks to growing demand for sensors and electrified powertrain components.
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