Valeo: Net Income of 365 Million Euros in 2010, or 3.8% of Sales; Operational Performance Ahead of the Strategic Plan Pr

PARIS, February 24, 2011 /PRNewswire/ --

    
    - Second half 2010:
    - Sales of 4,845 million euros, up by 20%
    - Operating margin level(1) at 6.7% of sales
    - Net income of 197 million euros, at 4.1% of sales
    - Full year 2010:
    - Sales of 9,632 million euros, up by 28%
    - Operating margin level(1) at 6.4% of sales
    - Net income Group share of 365 million euros, or 3.8 % of sales
    - Net earnings per share at 4.86 euros
    - ROCE(4) higher than 32%
    - Strong generation of net cash flow(2) of 440 million euros
    - Decrease in net debt(3) of 444 million euros, at 278 million
      euros at December 31, 2010
    - Record level of order intake of 12.5 billion euros
    - Proposed payment of dividend of 1.20 euros per share
    - 2011 Outlook:
    - Forecast growth of global automotive market of 5%
    - Objective: Valeo's outperformance versus the market in its
      main regions of production
    - Operating margin level(1) expected in 2011 slightly higher
      than that of 2010

The Valeo Board of Directors, meeting on February 24, 2011, approved the consolidated annual financial statements for the period ending December 31, 2010*:

    
                                      2009   2010
    Sales (MEUR)                     7,499  9,632
            of which OE sales (MEUR) 6,029  7,952

    Operating margin(1) (in % of       1.8%   6.4%
    sales)
    EBITDA(5) (in % of sales )         8.9%  11.9%

    Net income Group share (MEUR)     (153)   365
    Net income Group share (in % of   -2.0%   3.8%
    sales )
    Net earnings per share (EUR)     (2.04)  4.86

    Net cash flow(2) (MEUR)             99    440
    Net financial debt(3) (MEUR)       722    278

    ROCE(4)                              7%    32%

Jacques Aschenbroich, Valeo's Chief Executive Officer, declared:

"Our 2010 results, with an operational performance ahead of the objectives set in the plan presented in early 2010, underline the pertinence of our strategy. Moreover, our medium-term growth prospects, based on a record order intake level, the rising importance of innovative products developed by Valeo, and the Group's ability to regularly outperform its main markets, make us confident in our ability to achieve and sustain one of the best levels of return on capital employed in our sector."

*At the date of this press release, the consolidated financial statements for 2010 had been audited by the Statutory Auditors Second half 2010 results

Global passenger car production continued to recover in the second half of 2010, achieving 12% growth versus the second half of 2009.

Benefiting from a favorable automotive environment and from the outperformance of its original equipment activity on its main markets, the Group recorded in the second half of 2010 consolidated sales of 4,845 million euros, up by 15% on a like-for-like basis:

    
    - Original equipment sales amounted to 3,995 million euros (82%
      of consolidated sales). Compared with the second half of 2009,
      passenger car original equipment sales rose by 16% (like-for-like);
    - Aftermarket sales totaled 723 million euros (15% of consolidated
      sales), up by 12% versus the second half of 2009.
    In million euros  H2 2009    H2 2010    Change

                                            2010/2009
    Sales               4,027      4,845      +20%
    Like-for-like                             +15%*
    Original            
    equipment           3,286      3,995      +16%*
    Aftermarket           626        723      +12%*
    Miscellaneous         115        127       +5%*

* like-for-like

In the second half, the gross margin stood at 879 million euros, or 18.1% of sales.

The operating margin(1) amounted to 325 million euros in the second half of 2010, or 6.7% of sales.

EBITDA(5) therefore totaled 586 million euros, or 12.1% of sales.

Net income in the second half showed a profit of 197 million euros, or 4.1% of sales.

In the second half of 2010, the Group generated a net cash flow(2) of 199 million euros.

Net financial debt(3) was brought down to 278 million euros at December 31, 2010 versus 438 million euros at June 30, 2010. Simplified consolidated results for full-year 2010

    
    Million euros                      2009*      2010*      Change
    Sales                              7,499      9,632        +28%
    Gross margin                       1,138      1,735        +52%
    % of sales                          15.2%      18.0%     +2.8 pts
    Operating margin(1)                  133        617       +364%
    % of sales                           1.8%       6.4%     +4.6 pts
    EBITDA(5)                            670      1,150        +72%
    % of sales                           8.9%      11.9%       +3 pts
    Operating income                      84        590       +602%
    % of sales                           1.1%       6.1%     +5.0 pts
    Income from non-strategic              
    operations                             0          0         na
    Net income Group share              (153)       365         na
    Net earnings per share             (2.04)      4.86         na
    (continued operations) (EUR)
    Free cash flow                       155        527       +240%
    Net cash flow(2)                      99        440       +344%
    Net financial debt(3)                722        278        -61%

*Audited

In 2010, the order intake / original equipment sales ratio reached a record level at December 31, 2010 of 1.6 times sales (or 12.5 billion euros, versus 9.2 billion euros at December 31, 2009) with a consistent performance among the different Business Groups.

Global automotive production rose by 25% (annualized) to reach 74.0 million vehicles, exceeding the pre-crisis level (70.2 million vehicles in 2007). This performance is mainly the result of a dynamic Asian market, in particular the Chinese market, as automotive production in Europe and North America remained below pre-crisis levels.

Group consolidated sales in 2010 totaled 9,632 million euros, up by 28% (+24% on a like-for-like basis):

    
    - In 2010, Valeo's original equipment sales outperformed
      automotive production in its main regions of production:
    Passenger car    2009      2010      Change        Change      Automotive
    OE sales In                                                    production
    million euros                      2010 / 2009 (like-for-like)
    Europe &        
    Africa          3,713     4,472       +20%          +20%          +15%
    Asia and          
    others            985     1,461       +48%          +36%          +28%
    North America     589       995       +69%          +60%          +39%
    South America     474       601       +27%           +8%          +12%
    - Aftermarket sales amounted to 1,445 million euros, up by 14% on a
      like-for-like basis.
    In million euros     2009       2010     Change

                                            2010/2009
    Sales               7,499      9,632      +28%
    Like-for-like                             +24%
    Original            
    equipment           6,029      7,952      +27%*
    Aftermarket         1,242      1,445      +14%*
    Miscellaneous         228        235       -4%*

*like-for-like

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