After having posted a 38% increase in half-year sales, French supplier Valeo raised its full-year operating margin target and its forecasts for automobile production in major markets.
Valeo predicts that automobile production will climb by 6% this year in Europe, and 18% in Asia, mostly due to its strong showing in China. North American automobile production is expected to increase by 30% and South America should get a rise of 10%. Valeo said that first-half sales increased by 38% to 4.787 billion euros ($6.18 billion). Meanwhile, the operating margin widened to 292 million euros, or 6.1% of sales.
That compared with a 51 million euro loss, or negative 1.5%, in the year-earlier period. Net income was 168 million euros, compared with a year-earlier net loss of 213 million euros. The group raised its full-year operating margin target to over 5% of sales, based on its more optimistic view of car production in major markets.
Valeo had formerly targeted a doubling of its 2009 operating margin which stood at 133 million euros or 1.8% of sales. One sector analyst said that the operating (margin) was a “bit better than I expected.” Another analyst said that the results are in line with its latest expectations given the publications from other players in the sector.
It’s also very important that the company is raising its full-year objectives above the consensus.” Valeo also stated that it will revising upwards its forecast for automobile production in its main markets despite the end of vehicle scrapping programs in Europe and the macroeconomic uncertainties.”
[via autonews - sub. required]
Tags: car news, valeo, valeo operatin margin target
This entry was posted on Friday, July 30th, 2010 at 12:16 am and is filed under 2010, 4wheels News, Europe, Year, Zone. You can follow any responses to this entry through the RSS 2.0 feed.
You can leave a response, or trackback from your own site.
0 Comments.