Valeo-Cash flow 2021 affected by chip shortages | Photo credits: © 2016 Valeo SA
PARIS, Jan 26 (Reuters) – Valeo released preliminary results for 2021 on Wednesday evening showing free cash flow below expectations due to a sharp rise in inventories to cope with chip shortages.
The automotive supplier, which was to publish its annual results on February 24, announced according to unaudited data a turnover of 17.3 billion euros, up 5% and above expectations, and a margin of EBITDA of 13.4%, at the top of its forecast range.
It also reported a free cash flow of 290 million, lower than forecast, under the effect of an increase in inventories of 430 million euros, “resulting from a voluntary increase in inventories in order to supply the customers without disruption in the face of semiconductor shortages.”
(Gilles Guillaume, edited by Bertrand Boucey)