Valeo targets market-beating development by 2025 as manufacturing rebounds
Valeo expects to outperform the market within the medium time period as automobile manufacturing volumes get better, the provider stated after posting a 5 % rise in 2021 gross sales regardless of a success from the worldwide chip scarcity.
“After two years impacted by the COVID-19 disaster and the digital element scarcity, Valeo intends to take full benefit of the restoration in volumes forecast for the 2022-2025 interval,” the French firm stated in a statement.
Valeo, the world’s tenth largest auto provider, goals to extend its unique tools gross sales by round 13 % to outperform the market by greater than 5 proportion factors, assuming international automobile manufacturing of round 98.5 million automobiles in 2025.
Nevertheless, Valeo warned its enterprise continued to be impacted by the chip shortages which have precipitated disruptions in its prospects’ manufacturing schedules.
Semiconductor suppliers, automobile elements producers and automakers have stated they anticipate to see some enchancment within the chip shortages, which have plagued provide chains internationally, within the second half of the yr, as chipmakers increase manufacturing capability to fulfill the demand.
The group’s gross sales reached 17.26 billion euros ($19.35 billion) in 2021. For this yr, it sees gross sales between 19.2 billion and 20.0 billion euros.
Its core revenue margin is predicted to come back in a spread of 11.8 % to 12.3 %, under final yr’s degree of 13.4 %.
The outlook doesn’t embody doable unfavorable impacts from the battle between Ukraine and Russia, which might drag manufacturing volumes and hike vitality or uncooked materials costs, Valeo stated.
The group additionally plans to divest 500 million euros price of non-strategic belongings in 2022-2025 to carry its leverage ratio down and targets a “gradual restoration” in its dividend.
It proposed a dividend of 35 cents per share for 2021, up 17 % from a yr earlier.
Valeo ranks No.10 on the Automotive Information checklist of the highest 100 international suppliers with worldwide gross sales to automakers of $16.9 billion in 2020.