Valeo sees its third quarter sales growing on China, US demand image

Valeo SA, France’s second-largest car-parts producer, announced third-quarter sales went up as demand increased in China and North America, while the European car market showed signs of stabilizing.

The French manufacturer kept its full-year goal of a “slight increase” in the operating margin in 2013, “assuming stabilized market conditions in Europe.” Europe’s car market is still forecast to dip for a sixth consecutive year, due to the strong 18-month recession in the euro region that just ended in the second quarter.

“The group recorded excellent figures for the original equipment market, as well as in the aftermarket and demonstrated its capacity for balanced growth,” Chief Executive Officer Jacques Aschenbroich said in a statement. “These results reflect the gradual entry into production of the high order intake recorded by the group over the last three years and the strength of Valeo’s growth model.”

Sales climbed 2.2% to 2.91 billion euros ($3.98 billion), up from 2.84 billion euros a year earlier, the Paris-based company said in the statement today. Nine-month revenue grew to reach 9.07 billion euros, up 2.6% from a year earlier.

Valeo, making a wide range of automotive components, from windshield wipers, headlights tostop-start ignition systems, is now focusing on technology that enhances vehicle safety, comfort and pollution reduction in order to increase profitability.

Via Bloomberg