Breaking News

Tweet TWEET

Valeo’s First-Quarter Sales Rise on Higher China Demand

Valeo SA (FR), France’s second-biggest auto-parts maker, reported a 6.3 percent percent rise in first-quarter revenue on higher demand in China and North America and the end of a six-year contraction in Europe.

Sales increased to 3.11 billion euros ($4.3 billion) from 2.93 billion euros a year earlier, the Paris-based company said in an e-mailed statement today.

“These results demonstrate our capacity to outpace the market in all production regions and in all business groups,” Chief Executive Officer Jacques Aschenbroich said in the statement.

Valeo, whose products span windshield wipers, headlights and stop-start ignition systems, is focusing on technology that improves safety and comfort and reduces pollution to boost profitability. Last year, it met a goal to improve earnings as a proportion of sales after growth accelerated in the second half. Europe’s car market, which is starting to revive from a two-decade low, will increase 1 percent to 2 percent this year, the French manufacturer reiterated today.

Valeo stuck to a target to increase full-year sales at a faster pace than auto markets in its main regions. The company also aims for a “slight” gain in its 2014 operating margin.

The car-parts maker said on Feb. 21 that it will build six new factories, including four in China, and increase its global workforce by one-third over the next four years.

To contact the reporter on this story: Mathieu Rosemain in Paris at mrosemain@bloomberg.net

To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net Chris Reiter

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.