- Third consecutive Quarter of Improved Margins
- Continued Refocusing of the Product Portfolio
Following the meeting of its Board of Directors, Valeo
presented its first quarter 2008 results.
(in EUR million) 1 January - 31 March
2008* 2007** change
Total operating revenues 2,473 2,499 - 1.0%
Gross margin 392 377 + 4.0%
% of sales 16.1% 15.3% + 0.8 pt
Operating margin(1) 90 74 + 21.6%
% of total operating revenues 3.6% 3.0% +0.6 pt
Net income (attributable to the 43 33 + 30.3%
% of total operating revenues 1.7% 1.3% +0.4 pt
Basic earnings per share from 0.57 0.42 +35.7%
continued operations (EUR)
* The first quarter 2008 results were not audited by the
statutory auditors, nor were they the object of a limited review by
** These figures do not include amounts related to the wiring
harness activity, which was divested on 31 December 2007, in line
with IFRS 5 norms.
The Group's strategy is confirmed by the continued improvement of
its performance. Despite a market slowdown, Valeo's results have
progressed, thanks to its strategy of operational excellence (cost
and quality). The Group continued the alignment of its product
portfolio around its three Domains of Innovation, with the planned
divestiture of its truck engine cooling activity.
First quarter 2008 results
In the first quarter of 2008, total operating revenues stood at
2,473 million euros, stable at constant reporting entity and exchange
rates. Volumes increased by 3.7%. At the same time, world automotive
production rose by only 1.5%, a marked slowdown compared with the
second half of 2007 (+8%).
Gross margin totaled 392 million euros or 16.1% of sales. The 0.8
point increase in the margin rate reflects productivity gains and a
slight drop in raw material costs.
Operating margin rose by 21.6% to 90 million euros, compared with
74 million euros in 2007. Despite the marked automotive market
slowdown and an unfavorable calendar impact for the first quarter,
the operating margin rate was up by 0.6 points, in line with progress
made during the second half of 2007.
Net financial debt amounted to 786 million euros, down by 19%,
versus 966 million euros at 31 March 2007. This was due in part to
the sale of the wiring harness business on 31 December 2007. The
Group's net debt-to-equity ratio is 44%, down 10 points versus the
end of the first quarter 2007.
On 3 April 2008, Valeo announced a project to sell its truck
engine cooling division to the Swedish company EQT. This operation,
which aims to focus the Group's engine cooling activity on the
passenger car segment, is part of the program to divest non-strategic
Valeo received several awards from its automaker customers
recognizing the Group's quality performance, including an Excellent
Quality Performance Award from Toyota in Nagoya, Japan. The Group
also received awards from Toyota Europe, TPCA (Toyota Peugeot Citroën
Automobile) and Renault. For the fourth year in a row, Valeo improved
its quality performance, recording its lowest ever level of customer
returns in 2007, with a rate of 10 ppm (defective parts per million
delivered) versus 185 ppm four years earlier.
On 10 April 2008, the German insurance company Allianz gave
Valeo's Park4UTM system the 2008 Genius Safety Award, recognizing
innovations that contribute to better road safety. Park4UTM also won
the automotive industry's prestigious 2008 PACE Award. This is the
Group's fourth consecutive PACE Award, following the blind spot
detection system in 2007, the StARS micro-hybrid system in 2006 and
the Lane VueTM system in 2005.
In the context of an automotive market slowdown, with new
tensions impacting raw material prices, Valeo confirms an improvement
of its operating margin in 2008, thanks to the pursuit of its
strategy based on operational excellence and innovation.
2008 Annual General Meeting of Shareholders
The Valeo Board of Directors has called the Combined Annual
General Meeting of Shareholders (AGM) to be held on 20 June 2008 at
2:30 pm at the Palais Brongniart, Place de la Bourse, 75002 Paris.
The AGM will be asked to approve the Group's annual accounts and
the payment of a dividend of 1.2 euros per share. Payment is planned
for 1 July. The detachment of the dividend will occur prior to the
opening of trading on 26 June 2008.
Valeo is an independent industrial group dedicated to the design,
production and sale of components, integrated systems and modules for
cars and trucks. It is one of the world's leading automotive
suppliers. The Group has 125 production sites, 62 R&D centers, 9
distribution platforms, and employs 61,300 people in 28 countries.
For all additional information, please contact:
Kate Philipps, Group Communications Director, Tel:
Rémy Dumoulin, Investor Relations Director, Tel:
For more information about the Group and its activities,
please visit our web site http://www.valeo.com
(1) Operating income before other income and expenses
ots Originaltext: Valeo Management Services
Im Internet recherchierbar: http://www.presseportal.ch
For all additional information, please contact: Kate Philipps, Group
Communications Director, Tel: +33-1-40-55-20-65; Rémy Dumoulin,
Investor Relations Director, Tel: +33-1-40-55-29-30