French auto parts manufacturer sales zoom ahead

23rd July 2004, Comments 0 comments

PARIS, July 23 (AFP) - French auto parts manufacturer Valeo said Friday it would likely meet its sales targets this year thanks a brisk climb in new orders.

PARIS, July 23 (AFP) - French auto parts manufacturer Valeo said Friday it would likely meet its sales targets this year thanks a brisk climb in new orders.

"In the first half of the year we recorded EUR 1.4 in orders for every euro of sales and that is a guarantee of future sales," said Valeo chairman Thierry Morin as he presented January-June results.

The ratio has improved steadily over the last three years, moving from one to one in 2001, one to 1.2 in 2002 and one to 1.3 in 2003.

Morin added that in light of cost reductions, Valeo should be able to improve its orders pace, with the first effects seen in 2006-2007.

The company had net earnings of EUR 120 million (USD 146 million) in the first half of 2004, an increase of 17.6 percent over the same period last year, from sales that rose 1.7 percent to EUR 4.928 billion.

Another French auto parts enterprise, Faurecia, a subsidiary of PSA Peugeot Citroen, said Friday it expected European automobile production to be stable in second-half 2004 compared with the same period last year.

European auto production declined 0.3 percent in the first six months of the year, a performance that was far better than the anticipated drop of 3.4 percent.

Faurecia had first half sales of EUR 5.520 billion, up 5.3 percent on the same period of 2003, and an operating margin of 3.6 percent, compared with 3.1 percent.

© AFP

Subject: French news

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