Car parts maker Valeo confident of reaching full-year targets – Reuters
Oct 27 (Reuters) – French car parts maker Valeo (VLOF.PA) on Thursday said it was confident in its ability to reach its full-year guidance, as it posted third-quarter sales slightly above expectations.
The group, which specialises in the design, production and sale of components and services for the automotive sector, confirmed its guidance for 2022 based on estimates from S&P Global Mobility, which tracks data and predicts automotive production.
The business information provider this month forecast global production of light vehicles would hit 81.8 million this year, and sees it increasing to 85.3 million in 2023.
“Programmes we receive from our customers remain strong in this end of the year,” Chief Executive Christophe Périllat said on a call.
Périllat added the group saw an acceleration of sales in September and no order cancellations from its clients, and expects this trend to continue into the fourth quarter.
Third-quarter sales amounted to 5.26 billion euros ($5.26 billion), ahead of the 5.23 billion euros expected on average by analysts in a company-compiled consensus.
Valeo said changes in exchange rates from the depreciation of the euro against the U.S. dollar and the Chinese yuan had a positive 6% impact on its quarterly sales.
The French company sees total sales in 2022 coming in between 19.2-20.0 billion euros, and a core profit margin in a range of 11.8%-12.3%, below the 13.4% posted in 2021.
Périllat added the group is sheltered against rising energy costs, having signed long term contracts when prices were low in early 2020, many of which protect it for 2022 and into 2023.
Europe faces energy shortages as Russia cuts its gas supplies, raising costs and heaping additional pressure on tight supply chains which auto parts makers rely on to produce their components.
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