French automotive parts supplier Valeo had a first quarter revenue growth of 15 percent, according to the parts maker, buoyed by increased demand for components from European and Chinese manufacturers.
Valeo also reaffirmed its full-year goal of slightly increasing profit and its operating margin year-over-year, with worldwide auto production on the rise by 3 percent in 2015. The parts maker also expects the same level of growth in Europe, save for Russia where the situation remains dire. “In 2015, we expect to outpace the market in the main automotive production regions while improving our operating margin,” commented Chief Executive Jacques Aschenbroich in a company statement. Even automakers are feeling mildly positive about the prospects of the European auto market this year, with Renault modifying its internal forecast from a 2 percent increase to a larger 5 percent growth, while reaffirming its earlier prediction for a global automotive increase of 2 percent.
Valeo hinted last month it was mulling further purchases to expand its range of product offerings in rapid paced segments such as fuel efficiency and autonomous driving, also aiming to gain market share in the hybrid technology sector, on a rapid ascension today. After the first three months of the year, sales at Valeo totaled 3.581 billion euros ($3.87 billion), rising 6 percent from the first quarter of 2014. Original equipment deliveries jumped 7 percent to 3.113 billion and after-market sales soared another 6 percent. The first quarter performance was also buoyed by the favorable currency exchange rates.