Valeo : 2017 Results

Consolidated sales up 12% to 18.6 billion euros

Gross margin up 15% to 3.5 billion euros

Operating margin up 11% to 1.5 billion euros

Net income up 8% to 1,003 million euros, or 5.4% of sales, excluding a 117 million euro non-recurring expense relating to the decline in value of deferred tax assets following US tax reform. Including this expense, net income down 4% to 886 million euros, or 4.8% of sales
Sharp rise in order intake:

• Up 17% year on year to 27.6 billion euros for Valeo, of which 50% relates to innovative products
• 10 billion euros to date for Valeo Siemens eAutomotive, of which 6.1 billion euros in 2017

Jacques Aschenbroich, Valeo's Chairman and Chief Executive Officer, commented:
'Valeo's very strong results in 2017 once again demonstrate the solidity of our growth model. They were achieved amid more complex economic conditions, shaped in particular by the rise in the value of the euro and in raw material prices. The very high order intake, both for Valeo (27.6 billion euros) and for our joint venture Valeo Siemens eAutomotive (6.1 billion euros in 2017 and a cumulative 10 billion euros at end-February 2018), confirms our excellent positioning on the fast-growing markets of hybrid, electric and autonomous vehicles and justifies our sustained investment in R&D and production capacity.
At the end of the year we were also delighted to welcome the teams of FTE automotive and Valeo-Kapec. The integration, which is going well, will enable the Group to expand its footprint in Asia with Asian customers and to cement its leadership on the automatic transmissions market.'

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