Valeo beats quarterly sales expectations, but Europe, China lag
By Mathias de Rozario
April 23 (Reuters) - French car parts supplier Valeo published a rise in first quarter sales on Thursday, beating market expectations despite continued weakness in the automotive industry.
Global automotive production is expected to fall 3.4% this year, according to S&P Global Mobility forecasts published this month.
Valeo Q1 Sales Performance and Regional Analysis
Quarterly Financial Highlights
• Valeo reported first-quarter sales of 5.12 billion euros ($5.99 billion), up 1.3% on a constant currency basis and above the 5.01 billion euro average in a company-provided consensus.
Regional Sales Breakdown
Asia (excluding China), North and South America
• Sales rose year-on-year in Asia excluding China, and North and South America but fell 2.9% in Europe due to a contraction in the power division which sells parts for the electric mobility market.
Europe
• Sales in China fell 8.9% but the drop was contained by growth in its Light division.
China
• 90% of the memory volumes to be delivered and required for 2026 have now been secured, finance chief Edouard de Pirey said.
Operational Updates and Outlook
Middle East Conflict Impact
• Company sees limited impact from the conflict in the Middle East, with de Pirey saying its three employees in the area are safe and a supplier of aluminium tubes delivering as normal.
2026 Guidance and Growth Prospects
Return to Growth in China
• Confirms guidance for 2026, on track for a return to growth in China in the second half of the year.
($1 = 0.8541 euros)
(Reporting by Mathias de Rozario in Gdansk; Editing by Kirsten Donovan)
