Valeo expects further profit increase after topping 2014 target image

French auto parts supplier Valeo said it forecasts further profitability improvements this year after it managed to surpass its financial goals in 2014, buoyed by surging demand for the company’s offering in the segment of emissions-cutting technologies.

The company said in a statement it was now mulling for an operating profit margin in 2015 that exceeds the 7.2 percent figure achieved last year – when the company’s goal was to rise above 7 percent. Valeo added that it decided to increase the proposed shareholder dividend to 2.20 euros per share, up 29 percent from the previous figure after net income surged 20 percent during the latter six months of 2014 to 300 million euros ($339 million). During the same time revenue rose 12 percent to 6.38 billion euros. The company has among its products hybrid car components, LED headlights and hands-free parking systems and the French supplier wants to further expand its business towards autonomous driving systems as sales benefit from tightening engine emission levels. According to Valeo’s CEO, Jacques Aschenbroich, deliveries of “technologies for CO2 emissions reduction and intuitive driving” have buoyed the company’s order intake – surging 18 percent to 17.5 billion euros.

In Europe, the European Union has proposed new drastic measures for polluting emissions, with all automakers having to reach an average emission across their lineup of 95 g/km of CO2 by 2021. Additionally, the automakers are also pushing for the faster introduction of technology that enables partially autonomous driving and will soon drive the conversion to fully autonomous systems.

Via Automotive News Europe