Valeo Sets New 2015 Financial Targets as Part of its Strategic PlanBy Valeo, PRNE
Tuesday, March 8, 2011
PARIS, March 9, 2011 - At an Investor Day event held today in Paris, Valeo is presenting its
new medium-term guidance.
As announced when its 2010 results were released last February
24, Valeo is ahead of the 2013 targets set in March 2010, which included:
- Around EUR10 billion in sales; - An operating margin rate* of 6-7%; - A more than 30% return on capital employed**.
Valeo intends to pursue and step up the strategy presented in
March 2010 and is setting new targets for 2015.
Based on the record EUR12.5 billion in order intake last year,
Valeo is confident in its ability to outperform automobile production by an
average 3% a year over the 2011-2015 period, thanks to:
- Innovation and new products, particularly to reduce CO2 emissions; - Expansion in Asia and emerging markets.
Consequently, and barring any exogenous economic events
impacting its industry, Valeo now expects to achieve in 2015, through organic
growth, sales of around EUR14 billion, an operating margin rate* of more than
7% and a return on capital employed** exceeding 30%. These results assume
growth in global automotive output of around 5% a year over the 2011-2015
period, of which around 4.4% per year in Europe and Africa, 4.7% in North
America, 5.3% in South America and 5.8% in Asia.
Lastly, Valeo wants to play an active role in any potential
industry consolidation, while maintaining a disciplined financial strategy
aligned with its commitment to restoring its investment grade rating.
The presentations by Jacques Aschenbroich, Chief Executive
Officer, and Robert Charvier, Chief Financial Officer, as well as the 2010
consolidated financial statements, the auditors' report on the 2010
consolidated financial statements and the presentation of the 2010
consolidated financial statements, may be downloaded from the Publications
section of the www.valeo.com website.
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 58,000 people in 27 countries worldwide.
Glossary * Operating income before other income and expenses ** Operating margin/capital employed before goodwill, over the last 12 months
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.
 All of the assumptions are described in detail in Robert Charvier's
presentation at the March 9, 2011 Investor Day.
 These assumptions are based on output forecasts by specialized firms
JD Power and Associates and IHS Global Insight, as well as on Valeo's own
analysis of the market outlook.
For more information about the Valeo Group and its businesses, please
For additional information, please contact: Fabienne de Brebisson, Group Communications Vice President, Phone: +33(0)1-40-55-20-65; Thierry Lacorre, Investor Relations Director, Phone: +33(0)1-40-55-20-39
Tags: France, March 9, Paris, Valeo