Valeo - First Half 2007 Results
26/07/2007 20:55
PR Newswire
PARIS, July 26 /PRNewswire/ -- The Board of Directors, which met today, approved the
summarized consolidated accounts for the first half 2007.
In millions of euros(X) 1st half Quarterly variation 2007
2007 2006 Change 2nd quarter 1st quarter
Total operating revenues 5,286 5,309 -0.4% 2,646 2,640
Gross margin 810 835 -3.0% 414 396
% of sales 15.5% 15.9% -0.4pt 15.9% 15.2%
Operating income 169 169 = 90 79
% of total revenues 3.2% 3.2% = 3.4% 3.0%
Net income attributable to
Company shareholders 71 94 -24.5% 38 33
% of total revenues 1.3% 1.8% -0.5pt 1.4% 1.3%
Basic earnings per share 0.92 1.23 -25.2% 0.50 0.42
(in euros)
(X) Non audited
First half 2007 Group results
Valeo's total operating revenues stood at 5,286 million euros
in the first half 2007, down by 0.4% versus the first half 2006. Adjusted for
exchange rate variations (-1.6%) and changes in the consolidated reporting
entity (-0.5%), sales increased by 1.7%, in line with the growth in the
Group's reference automotive production.
The gross margin for the half totaled 810 million euros, representing for
15.5% of sales, versus 835 million euros or 15.9% of sales in the first half
2006. The Group considers that the rise in raw material prices reduced the
gross margin for the half by 0.6 points. The gross margin in the second
quarter increased by 0.7 points versus the first quarter.
Operating income amounted to 169 million euros, unchanged versus the same
period in 2006. It represents 3.2% of total operating revenues, the same
ratio as in the first half 2006. Operating income includes a net expense of
17 million euros under "other income and expenses", versus an expense of 32
million euros in 2006.
Income before tax was 126 million euros versus 152 million euros in 2006.
This includes other financial expenses of 20 million euros, versus other
financial income of 9 million euros in 2006 which included a capital gain of
20 million euros from the sale of the shareholding in Parrot.
Income tax totaled 50 million euros versus 44 million euros in
the first half 2006.
The net income attributable to Valeo shareholders was 71
million euros for the half, versus 94 million euros for the first half 2006.
Basic earnings per share totaled 0.92 euros, versus 1.23 euros in 2006.
Free cash flow(1) amounted to 78 million euros, unchanged
versus the first half 2006.
At 30 June 2007, Valeo's net debt stood at 940 million euros
versus 968 million euros at 31 December 2006. The debt-to-equity ratio was
51% versus 55% at year-end 2006.
The order intake for the half represented 1.2 times OEM sales
for the period, a level equivalent to that of the first half 2006.
Highlights of the first half
The Group's technological innovation potential continues to be
widely recognized by the market. Valeo's blind spot detection system, winner
of a 2007 PACE Award, will be available on selected Buick and Cadillac models
from 2008. The Park4UTM parking assistance system, introduced as a world
premiere on the Volkswagen Touran in the middle of the first half, has had an
excellent launch and will soon be available on nine additional models. The
StARSTM micro-hybrid system, which has equipped the Citroën C2 and C3 - also
as a world premiere - since 2004, is now standard equipment on the "smart
fortwo mhd" which will be available at the end of year, and the Group expects
new commercial developments for this starter-alternator technology in the
short term.
The optimization of the industrial footprint, which aims to
support customers' growth while constantly maintaining a competitive cost
base, continued. The Group opened two sites in Asia, one in Pusan, South
Korea (Engine Cooling) and the other in Foshan, China (Lighting Systems).
Moreover, the percentage of productive headcount in competitive-cost
countries continued to progress, representing 55% of the total versus 51% at
30 June 2006.
In order to reinforce its three Domains on a global basis and
strengthen its internal growth potential, the Group announced the creation of
two joint ventures in India, one for the Security Systems product family and
the other for the Electrical Systems product family. Benefiting from the
dynamism of the local market, these two operations are expected to generate
sales of some 100 million euros in 2010.
Outlook
For the second half, the Group forecasts an acceleration of global
automotive production, driven by North America and Asia.
Valeo continues to concentrate on its strategy based on innovation and
the focusing of the product portfolio on its three Domains. The Group is
confident in its capacity to achieve its objective of an operational margin
of 6% in 2010 and the doubling of its return on capital.
Valeo is an independent industrial group dedicated to the
design, production and sale of components, integrated systems and modules for
cars and trucks. It is one of the world's leading automotive suppliers. The
Group has 133 production sites, 67 R? centers, 9 distribution platforms, and
employs 72,300 people in 29 countries worldwide.
For more information about the Group and its activities,
please visit our web site http://www.valeo.com
(1) Non-GAAP item: cash flow less taxes less variation of working capital
requirements less financial expenses plus subsidies less gross investments in
tangibles and intangibles.
For all additional information, please contact:
Kate Philipps
Group Communications Director
Tel: +33-1-40-55-20-65
Remy Dumoulin
Investor Relations
Tel: +33-1-40-55-29-30
For all additional information, please contact: Kate Philipps, Group Communications Director, Tel: +33-1-40-55-20-65; Remy Dumoulin, Investor Relations, Tel: +33-1-40-55-29-30