VALEO Sales advance 8% in the third quarter of 2017 to 4.3 billion euros
Jacques Aschenbroich, Valeo's Chairman and Chief Executive Officer, commented:
"Since the start of the year, sales growth, at 14%, has outpaced automotive production by 5 percentage points on a like-for-like basis in line with our road map, which provides for an acceleration in medium-term growth. This growth is driven by the high order intake recorded over recent years, which is attributable, in particular, to our innovations in vehicle electrification and intuitive driving.
The Valeo Siemens order intake - which amounted to 5.4 billion euros over the first nine months of the year - positions us as the leading player in hybrid and electric vehicles."
Third-quarter 2017:- Consolidated sales of 4,301 million euros, up 8% (up 5% on a like-for-like basis).
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Original equipment sales of 3,751 million euros, up 8%, or 6% on a like-for-like basis, outpacing global automotive production by 4 percentage points after taking into account the negative 1.2 percentage point impact of the tense geopolitical context between China and South Korea.
Europe: up 5%(1), 1 percentage point higher than automotive production (excluding Russia: 2 percentage points higher)
China: up 16%(1), 16 percentage points higher than automotive production
Asia excluding China: up 9%(1), 1 percentage point higher than automotive production after taking into account the negative impact of the tense geopolitical context between China and South Korea
North America: up 1%(1), 9 percentage points higher than automotive production
South America: up 19%(1), 1 percentage point lower than automotive production.
- Aftermarket sales up 7% (up 2% on a like-for-like basis). In the first nine months of the year:
- Consolidated sales of 13,765 million euros, up 14% (up 8% on a like-for-like basis).
- Original equipment sales of 11,986 million euros, up 13%, or 8% on a like-for-like basis, outpacing global automotive production by 5 percentage points after taking into account the negative 1.2 percentage point impact of the tense geopolitical context between China and South Korea.
- Aftermarket sales up 12% (up 4% on a like-for-like basis). Finalization of the acquisition of FTE Automotive and Valeo-Kapec joint venture:
Having been authorized by the European Commission, the FTE Automotive acquisition should be finalized in late October 2017, subject to approval from the Turkish antitrust authorities.
The formation of the Valeo-Kapec joint venture should be completed by the end of 2017, as Valeo has received clearance from the relevant antitrust authorities.
1 Like for like (constant Group structure and exchange rates). 2017 outlookThe growth forecast for global automotive production has been revised slightly upwards to around 2%. Valeo confirms its objectives for 2017:
sales growth outperforming the market by more than 5 percentage points;
a slight increase in operating margin(1) (as a % of sales and before acquisitions) despite the increase in raw material prices and the situation in South Korea.
Automotive production expanded by 2% year on year in the third quarter of 2017, benefiting from:
faster growth in Europe;
continued expansion in Asia (excluding China);
the growth uptick in automotive production in South America.
Automotive production was stable year on year in China. In North America, automotive production contracted.
Automotive production (year-on-year change)
First-half* | Third-quarter* | Nine months ended September 30, 2017* | |
Europe and Africa | +2% | +4% | +2% |
excluding Russia | +1% | +3% | +1% |
Asia, Middle East & Oceania | +4% | +4% | +4% |
of which China | +3% | 0% | +2% |
excluding China | +5% | +8% | +6% |
North America | 0% | -8% | -2% |
South America | +17% | +20% | +18% |
TOTAL | +3% | +2% | +3% |
* LMC automotive production estimates released on October 11, 2017.
The growth forecast for global automotive production in 2017 has been raised to around 2%.
Sales growth Sales for the first nine months of the year climbed 14%, delivering like-for-like growth of 8% (growth of 8% and 5% respectively in the third quarter, to 4,301 million euros). The impact of changes in exchange rates during the first nine months of the year was neutral (negative 3.3% impact in the third quarter, primarily due to the appreciation of the euro against the US dollar, Chinese renminbi and Japanese yen). Changes in Group structure had a positive 6.2% impact during the first nine months of the year (a positive 5.9% impact in the third quarter), following the takeover of Ichikoh, which has been consolidated by the Group since February 1, 2017. Ichikoh has contributed 665 million euros to consolidated sales since the start of the year (246 million euros in the third quarter).Sales (in millions of euros)
As a % of sales over first nine months | First-half | Third-quarter | Nine months ended September 30 | ||||||||||
2016 | 2017 | Change | LFL change* | 2016 | 2017 | Change | LFL change* | 2016 | 2017 | Change | LFL change* | ||
Original equipment | 87% | 7,106 | 8,235 | +16% | +9% | 3,472 | 3,751 | +8% | +6% | 10,578 | 11,986 | +13% | +8% |
Aftermarket | 10% | 845 | 963 | +14% | +5% | 417 | 446 | +7% | +2% | 1,262 | 1,409 | +12% | +4% |
Miscellaneous | 3% | 179 | 266 | +49% | +27% | 105 | 104 | -1% | -15% | 284 | 370 | +30% | +11% |
Total | 100% | 8,130 | 9,464 | +16% | +9% | 3,994 | 4,301 | +8% | +5% | 12,124 | 13,765 | +14% | +8% |
* Like-for-like (constant Group structure and exchange rates).
Original equipment sales for the first nine months of the year climbed 8% on a like for like basis (up 6% in the third quarter to 3,751 million euros). Aftermarket sales rose 4% over the first nine months of the year on a like-for-like basis (up 2% in the third quarter). Miscellaneous sales, mainly consisting of tooling revenues related to the launch of new projects, increased by 11% like for like in the first nine months of the year (down 15% in the third quarter).Valeo SA published this content on 24 October 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 24 October 2017 16:02:04 UTC.
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