Oct 27 (Reuters) – French automotive supplier Valeo (VLOF.PA) On Thursday, it said it was confident in its ability to meet its full-year targets as it reported third-quarter sales slightly above expectations.
The group, which specializes in the design, production and sale of components and services for the automotive sector, confirmed its forecast for 2022 based on estimates from S&P Global Mobility, which tracks data and predicts automotive production.
This month’s business information provider provide global light vehicle production is expected to reach 81.8 million this year, and sees it rise to 85.3 million in 2023.
“The programs we receive from our customers remain solid at the end of the year,” said general manager Christophe Périllat during a call.
Périllat added that the group had seen an acceleration in sales in September and no order cancellations from its customers, and expects this trend to continue in the fourth quarter.
Third-quarter sales were 5.26 billion euros ($5.26 billion), ahead of the 5.23 billion euros expected on average by analysts in a consensus compiled by the company.
Valeo said changes in exchange rates due to the depreciation of the euro against the US dollar and the Chinese yuan had a positive impact of 6% on its quarterly sales.
The French company forecasts total sales in 2022 of between 19.2 and 20.0 billion euros, and a basic profit margin in the range of 11.8% to 12.3%, lower than the 13.4% displayed in 2021.
Périllat added that the group is insulated from rising energy costs, having signed long-term contracts when prices were low in early 2020, many of which protect it for 2022 and into 2023.
Europe is facing energy shortages as Russia cuts its gas supplies, driving up costs and putting further pressure on the tight supply chains auto parts makers rely on to produce their components.
In 2023, Valeo sees an impact of 60 million euros on its energy bill from the rise in electricity and gas prices. This would be up 30% compared to its energy bill in 2021, which it considers a “very satisfactory” ratio.
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Reporting by Elena Vardon and Lina Golovnya; Editing by Toby Chopra and Bernadete Baum
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