Press release – H1 2019 Results

Jacques Aschenbroich, Valeo’s Chairman and Chief Executive Officer, commented:

“In an automotive market that declined 7% in the first half, we demonstrated our ability to accelerate our outperformance, which came out at 4 percentage points, and improve our profitability following the low point recorded in second-half 2018.

Despite the overall market decline of around 4% in 2019, all of the actions we rolled out to achieve a structural reduction in costs and capital expenditure enable us to confirm our operating margin (excluding share in net earnings of equity-accounted companies) objective, based on an operating margin of at least 6.3% in the second half and continued free cash flow generation. Valeo therefore confirms the strengthening of its strategic positioning in high-growth segments and the capacity to finance its dividend policy.”

Paris, July 24, 2019, Valeo’s consolidated sales came to 9,776 million euros in the first half, down 1% compared with the prior-year period.

Original equipment sales totaled 8,220 million euros, down 3% on a like-for-like basis⁽²⁾ and representing a 4 percentage point outperformance versus global automotive production. The Group’s outperformance accelerated over the first half (from 3 percentage points in the first quarter to 4 percentage points in the second quarter). Sales were affected in particular by the strong decline in automotive production in China, which fell 16% (IHS/CPCA⁽³⁾ estimates) in the first half.

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