(Updated with press releases on governance and the strategic plan)
PARIS, Jan 26 (Reuters) – Valeo VLOF.PA 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 and announced as provided for the appointment of Christophe Périllat as Chief Executive Officer.
The automotive supplier, which was to publish its annual results on February 24, reported, according to unaudited data, a turnover of 17.3 billion euros, up 5% and above expectations. , and an EBITDA margin of 13.4%, at the top of its forecast range.
On the other hand, it announced a free cash flow of 290 million, lower than its forecasts of between 330 and 550 million, under the effect of an increase in stocks of 430 million euros “resulting from a voluntary increase in stocks in order to to supply customers without interruption in the face of shortages of semiconductors.”
“In a difficult context of a serious global shortage of electronic components, which massively slowed down automotive production in 2021, Valeo has shown strong resilience,” said Christophe Périllat, quoted in a press release.
“The increase in stocks implemented to protect our customers will gradually be absorbed in 2022, as supply conditions improve,” he added.
Valeo has indicated that it will publish its final results on February 25, and no longer on February 24, and that it will accompany this publication with the presentation of its strategy for 2022-2025 and the associated financial projections.
In accordance with CEO Jacques Aschenbroich’s succession plan, Valeo’s Board of Directors has decided to appoint Christophe Périllat as Chief Executive Officer, while Jacques Aschenbroich will remain Chairman of the Board for the remaining term of his term as director, the equipment manufacturer added. in another press release.
Jacques Aschenbroich’s mandate runs until 2023.
This succession at the head of the group, and the split in the functions of CEO which accompanies it, were announced in October 2020.
Christophe Périllat, 56, who joined Valeo in 2000, was appointed Deputy CEO in May 2021.
This is a page that turns for the group since Jacques Aschenbroich, 67, president of Valeo since 2016, was also its managing director since 2009.
Arrived in the midst of the automotive crisis, a consequence of the shock wave of the bankruptcy of the Lehman bank at the end of 2008, this engineer, formerly of Saint-Gobain, refocused Valeo on its core business and printed a sober and rigorous style. at the head of the group.
Anticipating several underlying trends – the decline of diesel, the boom in electrification – it has strengthened the position of the equipment manufacturer in several businesses that are currently enjoying strong growth, such as hybrids, driving aids and lighting.
(Gilles Guillaume, edited by Bertrand Boucey)