Valeo Reports First Quarter 2011 Organic Sales Growth of 15.6% (+19.2% in Original Equipment Sales), With all Business Groups and all Production Regions Outperforming the MarketBy Valeo, PRNE
Wednesday, April 20, 2011
Consolidated Sales up 15.6% (+14.3% like-for-like)
PARIS, April 21, 2011 - Following the meeting of its Board of Directors today, Valeo
released its sales figures for the first quarter 2011:
In million euros Q1 2010* Q1 2011* % change % change 2011/2010 2011/2010** Original equipment 1,898 2,263 +19.2% +17.4% Aftermarket 351 361 +2.8% +4.5% Other 60 45 -25.0% -26.5% Total sales 2,309 2,669 + 15.6% +14.3%
* Unaudited ** On a like-for-like basis
Jacques Aschenbroich, Valeo's Chief Executive Officer, said:
"Our strategic focus on developing products that reduce CO2 emissions and on
increasing sales in Asia and emerging markets continued to pay off well in
the first quarter of 2011. Our performance for the period once again
demonstrated our ability to grow significantly faster than the market in all
of our businesses and production regions. I'm confident that we will continue
to outperform the market throughout the rest of the year."
In the first quarter 2011, global automotive production remained high in
all production regions except Japan where output fell 29%. Global passenger
car production was up 4.5% compared with the year-earlier period.
In this environment, original equipment sales rose 19.2% (+17.4%
like-for-like) to EUR2,263 million, despite a 22% drop in Japan,
outperforming market growth by 12 points. Aftermarket sales were up 4.5%, at
Total consolidated sales amounted to EUR2,669 million, up
15.6% compared with the first quarter 2010. The like-for-like increase was
Above-market growth in original equipment sales in all
Original 1st quarter* equipment (in million euros) 2010 2011 % change % change Valeo automotive sales** production Europe 1,170 1 365 +17% +8% Asia excl. Japan 258 310 +17% +9% of which China 140 161 +14% +7% Japan 117 101 -22% -29% North America 212 317 +46% +15% South America 143 170 +10% +9%
*Unaudited ** Like-for-like
Automotive production rose 8% in Europe and 15% in North
America compared with the first quarter 2010. In Asia, production declined by
1% due to the consequences of the earthquake in Japan which led to a 29% drop
in the country's output for the quarter.
Against this backdrop, the Group's original equipment sales
outperformed the market in all production regions:
- In Europe, Valeo sales growth of 17% thanks to its favorable
customer positioning and product mix, and the ramp-up of certain
technologies, particularly in the Powertrain Systems and Comfort & Driving
Assistance Systems Business Groups;
- In Asia, excluding Japan, Valeo sales growth of 17% thanks
to increased market shares;
- In North America, Valeo sales growth of 46% thanks to its
favorable customer positioning, improved product mix and market share gains.
These dynamic performances in all regions, combined with a positive
geographic mix, enabled the Group to outperform global original equipment
market growth by 12 points in the first quarter.
Europe accounted for 60% of original equipment sales in the first quarter
compared with 63% in the same period of 2010. North America accounted for 14%
versus 11% in the same period of 2010, and Asia was down by 1 point versus
the same period of 2010, at 18%.
All Business Groups contributed to the increase in sales and
outperformed the growth in global automotive production
Total sales 1st quarter* In million euros 2010 2011 % % change change OE sales** Valeo sales** Comfort & Driving 408 481 +17% +19% Assistance Systems Powertrain Systems 636 767 +21% +25% Thermal Systems 693 783 +10% +11% Visibility Systems 591 664 +12% +17%
*Unaudited ** Like-for-like
The Business Groups all delivered dynamic performances, with
original equipment sales rising faster than global automotive production,
which was up 5% in the first quarter.
The Group also achieved excellent results with its German
customers, which now account for 29% of total original equipment sales
compared with 27% in the first quarter 2010.
Situation following the earthquake in Japan
Valeo does not expect global automotive production (except in Japan) to
be seriously affected up until the end of May. Nevertheless, beyond that
date, possible problems in the supply chain for electronic and other
components cannot be ruled out, and automotive production may also be
Valeo announced on February 23, 2011 the signing of an
agreement with RHJ International SA and Nissan to acquire Niles, a Japanese
automotive supplier which would reinforce Valeo's Comfort and Driving
Assistance Systems Business Group. The transaction amounts to 320 million
euros (enterprise value). With this acquisition, Valeo would strengthen its
position in Asia (Japan, China, Thailand) and with Japanese automakers,
particularly Nissan. The Group would thus become world leader in the
automotive Human-Machine Interface market. This external growth project is
within the framework of the strategy presented to the Group's shareholders in
2011, aiming to reinforce Valeo's presence in Asia. The agreement is subject
to various preconditions, such as approval of the anti-trust authorities,
before it can enter into effect.
On March 9, 2011 Valeo organized an investor day to present its new
medium-term financial objectives.
On April 1, 2011 two new facilities were opened in China - an
Electronics Expertise Center in Shenzhen that will develop electronic
hardware and services for all Group entities and a wiper systems plant in
Wenling that will significantly increase wiper and washing system production
capacity for both Chinese and international customers.
Annual Shareholders' Meeting, June 8, 2011.
The Board of Directors decided to propose to the 2011 Annual
Shareholders' Meeting the appointment of Mr. Thierry Moulonguet as a new
Member of the Board. Mr. Thierry Moulonguet spent the majority of his career
with the Renault-Nissan group, where he was notably Executive Vice-President
and Chief Financial Officer and Member of the Executive Committee then
Special Adviser to the CEO of Renault up until his departure on March 31.
Valeo is an independent industrial Group fully focused on the
design, production and sale of components, integrated systems and modules for
the automotive industry, mainly for CO2 emissions reduction. Valeo ranks
among the world's top automotive suppliers. The Group has 109 plants, 20
research centers, 38 development centers, 10 distribution platforms and
employs 60,900 people in 27 countries worldwide.
For more information about the Valeo Group and its businesses, please
Safe Harbor Statement
Statements contained in this report, which are not historical
fact, constitute "Forward-Looking Statements". Actual results may differ
materially due to numerous important factors. Such factors include, among
others, the cost and timing of implementing restructuring actions, the
company's ability to generate cost savings or manufacturing efficiencies to
offset or exceed contractually or competitively required price reductions,
conditions in the automotive industry, and certain global and regional
economic conditions. The company assumes no responsibility for any analysts'
estimates and any other information prepared by third parties which we may
reference in this report. Valeo does not intend or assume any obligation to
review or confirm analysts' estimates or to update any forward-looking
statement to reflect events or circumstances after the date of this report.
For more information, please contact: Fabienne de Brebisson, Group Vice-President, Communications, Phone: +33-1-40-55-20-65; Thierry Lacorre, Investor Relations Director, Phone: +33-1-40-55-20-39
Tags: April 21, France, Paris, Valeo