Car parts maker Valeo sees lower core profit margin in 2022 – Reuters

February 25, 2022 by No Comments

The logo of Valeo is pictured during the Viva Tech start-up and technology summit in Paris, France, May 25, 2018. REUTERS/Charles Platiau

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Feb 25 (Reuters) – French car parts maker Valeo (VLOF.PA) on Friday forecast its core profit margin would come between 11.8% and 12.3% this year, below last year’s level, and unveiled a strategic plan for 2021-2025.

The group, which specialises in the design, production and sale of components and services for the automotive sector, reported a margin on earnings before interest, taxes, depreciation, and amortisation of 13.4% in 2021, in line with its own guidance.

However, its free cash flow at 292 million euros ($327.36 million) fell short of its previously announced target range of 330-550 million euros.

Valeo also provided a new medium-term outlook, saying it aims to increase its original equipment sales by around 13% and to outperform the market by more than 5% over the 2021-2025 period, led by volumes recovery.

($1 = 0.8920 euros)

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Reporting by Olivier Cherfan and Dagmarah Mackos; editing by Milla Nissi

Our Standards: The Thomson Reuters Trust Principles.

Source: https://www.reuters.com/business/autos-transportation/car-parts-maker-valeo-sees-lower-core-profit-margin-2022-2022-02-25/

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