Mexican Media Brands
Valeo’s Sales, Earnings Drop
Parts supplier Valeo SA reports its revenue, operating income and net profit fell in the first half of 2019 because of declining vehicle production, especially in China.
#economics
Share
Parts supplier Valeo SA reports its revenue, operating income and net profit fell in the first half of 2019 because of declining vehicle production, especially in China.
Global sales by the Paris-based maker of electronics, lighting and driver-aid systems slipped 1% to €9.8 billion ($10.9 billion). Operating income plunged 47% to €377 million ($420 million), and net income attributable to shareholder skidded 64% to €162 million ($181 million).
The company’s operating margin dropped to 5.3% of sales from 7.7% in the first half of 2019.
Valeo launched a plan in January to lower its annual costs and capital investments by €100 million ($111 million) each. The company says that effort—coupled with falling raw material prices and the launch of new product programs—leaves its previous guidance unchanged.
The supplier predicts a gradual gain in performance through the second half of 2019, marked by an unspecified gain in earnings before interest, taxes, depreciation and amortization and continued positive free cash flow.
RELATED CONTENT
-
China and U.S. OEMs
When Ford announced its 3rd quarter earning on October 24, the official announcement said, in part, “Company revenue was up 3 percent year over year, with net income and company adjusted EBIT both down year over year, primarily driven by continued challenges in China.” The previous day, perhaps as a preemptive move to answer the question “If things are going poorly in China, what are you doing about it?, Ford announced that it was establishing Ford China as a stand-alone business unit.
-
Enterprise Edges into Self-Driving Car Market
U.S. rental car giant Enterprise Holdings Inc. is the latest company to venture into the world of self-driving vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.