Updated: 02/22/2013 17:48 | By Agence France-Presse

Valeo reports profit fall, raises dividend

French auto parts maker Valeo reported an 11.0-percent fall in net profit in 2012 to 380 million euros ($502 million) despite an 8.23-percent rise in sales pulled by global auto production.

Sales revenue was also boosted by group activities in Asia and in North America.

Sales totalled 11.8 billion euros, and operating profit excluding special factors amounted to 725 million euros.

This gave an operating margin of 6.2 percent of sales, in line with targets, from a margin of 6.5 percent in 2011.

The value of orders taken rose to 15.8 billion euros from 14.9 billion euros in 2011.

The board recommended a dividend of 1.50 euros, an increase of 7.0 percent from the payout in 2011.

But Valeo warned that it expected global production to slow down markedly this year, estimated that its output would rise by 1.0 percent after a rise of 6.0 percent last year.

It expected production in Europe to fall by 4.0 percent, and also expected raw materials costs to be steady.

Valeo said that in its main regions of production, it was targeting growth greater than growth of the market, and it saw the European market picking up in the second half.

This should enable it to maintain its margin in millions of euros, it said.

The group said it was confident of achieving strong and profitable internal growth in coming years, owing to growth in Asia and emerging markets.

The price of shares in the company was showing a gain of 1.02 percent to 40.95 euros in morning trading. The overall market as measured by the CAC 40 index was showing a gain of 1.0 percent.



Latest Photo Galleries on xinmsn



facebook recommendations