Valeo reports slight profit fall, but optimistic
French auto parts manufacturer Valeo reported a 2.0-percent fall in net profit on Tuesday, but said the worst was now past for the global car industry.
Net profit for the six months ended June 30 came to 190 million euros ($252 million) from 193 million euros a year ago, mainly reflecting the sale of the Access Mechanism business as well as unfavourable exchange rates.
Sales however, grew 2.8 percent to 6.17 billion and its operating margin widened by 4.0 percent compared with last year.
In afternoon trading on the Paris stock exchange, shares in the company had jumped by 4.03 percent to 58.89 euros.
Valeo chief executive Jacques Aschenbroich said "the worst is behind us," adding "Valeo once again confirmed its status as a growth business."
He particularly pointed to the balanced sales growth of original equipment which he said was "outpacing the global market by five percentage points."
For 2013, Valeo expects the European automotive production to slump by two to three percent, but it predicts a two percent growth for global car production.
Valeo said that in terms of its own outlook for the year, it expected to perform better than the market in the main production regions and to achieve a slightly better operating margin than last year.
"Given the results of Valeo's efforts in innovation and expansion in Asia and emerging countries, we are confident that the group will achieve its medium-term financial objectives," Aschenbroich said.
© 2013 AFP