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Valeo's Growth in Sales (+33.1%) and Provisional Half-Year Results

12 July 1999

Growth in Sales (+33.1%) and Provisional Half-Year Results

    PARIS, July 12 -- Valeo's consolidated sales for the first
half of 1999 were up by 33.1%, totaling 3,890.4 million euros versus
2,924 million euros for the same period in 1998.
    Sales grew by 16% in Europe, 146% in North America and 27% in Asia.  This
growth is mainly due to the acquisition of new businesses in 1998.  Sales in
South America were down by 44%, accounting for 2% of total Group sales.
    Provisional half-year results are higher than the estimates given at the
Annual General Meeting of Shareholders on May 25, 1999.  They show a
progression in net income from consolidated companies surpassing that of sales
as well as accretive earnings per share, taking into account the capital
increase of 1998.
    Operating income in the first half suffered from the drop in business
activity in South America, the impact of restructuring and the disposal of
assets in this region, together with the launch of new advanced technology
lighting products.
    In an automotive market that is buoyant in Europe and in North America,
stable in South America and recovering significantly in South Korea, Group
sales for the full year are expected to exceed 7.6 billion euros (50 billion
French francs) against 6,019 euros in 1998.  This forecast includes the
integration, over five months, of Mando's alternators and starters business,
of which the Group recently announced the acquisition.  A significant
improvement in margins is expected in the second half.
    Final figures will be published during the week of September 6.

    Valeo is an independent industrial Group fully focused on the design,
production and sale of components, integrated systems and modules for cars and
trucks.  It ranks among the world's top 10 automotive suppliers.  The Group
has 111 plants, 29 R&D centers and 11 distribution centers in 20 countries
worldwide.

    For more information on the Group and its businesses, please consult our