Valeo posted slightly better-than-expected half-year core profit and reiterated its full-year guidance, citing a projected increase in global car output.
Valeo’s half-year earnings before interest, tax, depreciation and amortization fell nearly 8 percent to 1.11 billion euros ($1.12 billion) but beat a company-supplied analyst consensus forecast of 1.07 billion euros.
“The context has been difficult,” CEO Christophe Perillat told reporters, referring to microchip shortages that have hit the automotive sector. However, he said the chip situation “is improving.”
Additional pressures have come from rising costs in tight supply chains on which auto parts manufacturers rely to produce components.
Valeo said in February that it expected a 2022 core profit margin in a range of 11.8-12.3 percent, down from 13.4 percent last year.
S&P Global, which tracks data and predicts automotive production, this month forecast global production of light vehicles would hit 81 million this year, up from about 77 million in 2021.
