Valeo gives cautious 2022 outlook amid global undertainties – 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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  • Targets EBITDA margin of 11.8-12.3% in 2022 vs. 13.4% in 2021
  • 2022 sales expected to rise to 19.2-20.0 billion euros
  • Sees “minimal” direct impact from Ukraine crisis
  • Shares fall 10%

Feb 25 (Reuters) – French car parts maker Valeo (VLOF.PA)said on Friday it expected to report lower core profit margin this year amid geopolitical tensions and inflationary pressures, after 2021 margin missed the group’s target.

“Overall, Valeo’s H2/21 results were consistent with the Jan 26 pre-announce, but 2022 guidance was well below consensus expectations,” RBC analyst Tom Narayan said in a note.

He added this was in line with what Renault (RENA.PA), Michelin (MICP.PA), Faurecia (EPED.PA) and Stellantis (STLA.MI) had earlier said, suggesting companies remain cautious amid the global chip shortage.

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Shares in Valeo were down 10% in midday trade, as the stock heads for its worst day since March 2020.

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