Car-parts maker Valeo reported full-year operating profit up 3% due to its new products and increased demand in Asian markets, making up for the loss in Europe.
The French car-parts maker also announced its operating margin increased to 725 million euro ($958 million) from 704 million euro in 2011, surpassing analysts’ expectations of 686 million-euro average.
“We are confident in our ability to achieve strong and profitable organic growth in the years ahead following a 6 percent jump in new orders to a record 15.8 billion euro,” Chief Executive Officer Jacques Aschenbroich said in the statement.
Valeo begins to focus on comfort, safety and environmental technologies, part of its plan to increase margins. In 2012 the company promised to double revenue from fuel-saving parts, reaching 1 billion euro by 2013, and a 30% return on capital. In 2012 Valeo’s revenue increased 8.2% to 11.8 billion euro and sales went up 7.6% to 9.91 billion euro, with the Asian markets increasing their share of original-equipment sales from 25% to 28%, while Germany remained at 29%.
“With all the investment we’ve done with new products and in new territories, we’re able to compensate the downturn of Europe,” Aschenbroich said.