Valeo: Double Digit Rise in Provisional 1998 Results
22 January 1999
Valeo: Double Digit Rise in Provisional 1998 Results
NEW YORK--Jan. 21, 1999--Valeo's Board of Directors meeting on January 21, 1999 was informed of the Group's provisional consolidated results for 1998.
========================================================
(in millions) 1998 Provisional 1997 %
========================================================
(E) FFr (E) FFr Change
------------------------------------------------------==============--
Sales 6,019 39,480 5,179 33,970 + 16.2%
---------------------------------------------------------------------
Gross Margin 1,233 8,090 1,049 6,882 + 18 %
(in %) 20.5% 20.3%
Operating
income 427 2,800 350 2,297 + 22 %
(in %) 7.1% 6.8%
Net income 259.5 1,702 225.6 1,480 + 15 %
(in %) 4.3% 4.4%
Cash flow 636 4,170 549 3,599 + 16 %
----------------------------------------------------------------------
at 12/31 at 12/31
----------------==============------------==============------------
Stockholders'
equity 2,137 14,020 1,865 12,234
Net
indebtedness 625 4,100 201 1,318
========================================================--------------
Debt-to-equity
ratio (%) 29% 11%
========================================================--------------
Provisional results 1998
- Valeo's consolidated sales for 1998 totaled (E)6 billion, up
by 16.2% over 1997. This figure integrates for the last quarter
of 1998 the recently acquired Electrical Systems activities and
excludes the (E)61 million in sales generated by the display
and fuel tank cap and filler activities disposed of in 1998.
- The Group's annualized sales in its reporting entity at December
31, 1998, amounted to (E)7.3 billion and reflect average
annual growth of 19% over the last five years. The breakdown in
sales is as follows: 65% in Europe, 28% North America and 7% in
other countries.
- Gross margin increased by 18% to (E)1,233 million, that is
20.5% of sales against 20.3% in 1997. The operating margin
progressed by 22%, accounting for 7.1% of sales against 6.8% in
1997. They both grew faster than sales in a demanding competitive
environment, reflecting the cost reduction actions implemented by
Valeo in 1998.
- Net earnings per share for 1998 amounted to (E)3.45, an
increase of 8% compared with 1997. These figures take into
account the increase in the average number of shares that
occurred in 1998, following the issue of shares with warrants
attached in August 1998.
- Cash flow, up by 16% to (E)636 million, largely financed Group
capital expenditures. At December 31, 1998, Valeo's net
indebtedness stood at (E)625 million, that is a debt-to-equity
ratio of 29%.
- 1998 marked the 5th year in a row that saw a rise in Valeo's
results and earnings per share. Between 1993 and 1998, Group
sales rose by 95% and net income by 141%.
- Valeo will publish its definitive results, as well as its
detailed accounts, following the meeting of its Board of
Directors to be held on February 10, 1999.
Valeo is an industrial group fully focused on the design, production and sale of components, integrated systems and modules for cars and trucks. The Group serves all automakers worldwide. Valeo has 119 plants and 29 R&D centers in 19 countries. For more information about Valeo and its businesses, please consult our Web site: http//www.valeo.com.