Valeo’s half-year profit before interest, tax, depreciation and amortization fell nearly 8% from a year earlier to 1.11 billion euros ($1.12 billion), but exceeded consensus of analysts provided by the company, which were 1.07 billion euros.
“The context has been difficult,” CEO Christophe Perillat told reporters, referring to the shortages of electronic chips that have hit the automotive sector. However, he said the flea situation is “improving”.
Additional pressures have been exerted by rising costs in the tight supply chains that auto parts makers depend on to produce components.
Valeo said in February that it expects a core profit margin for 2022 in a range of 11.8 to 12.3 percent, down from 13.4 percent last year.
IHS Markit, which tracks data and predicts auto production, forecast this month that global light vehicle production will hit 81 million this year, up from around 77 million in 2021.
PUSHING TOWARDS ELECTRIC VEHICLES
Valeo added in a press release that it was “particularly satisfied” with its order intake, particularly in the field of vehicle electrification and advanced driver assistance systems.
The European Union is pursuing its plans for net zero emissions by 2050, prompting manufacturers and suppliers to increase their investments in electric vehicles (EVs).
Over the past few months, Valeo has signed numerous agreements and partnerships in the field of EVs, including a major contract with BMW to equip the German manufacturer’s next EV platform with its advanced driver assistance systems (ADAS).
In February, it announced jointly with Renault its plan to develop a new generation electric motor vehicle in France.
Valeo’s “Move Up” plan, unveiled in February, focuses on the accelerated adoption of vehicle electrification and ADAS systems.
Valeo’s order intake in the first six months of 2022 was 13.1 billion euros, and 2.9 billion for Valeo Siemens eAutomotive, the group said, adding that this “puts us perfectly in line”. with the Move Up plan.
($1 = 0.9872 euros)