- 4 percentage point outperformance versus automotive production, accelerating over the first half
- Operating margin of 514 million euros, or 5.3% of sales, up 0.5 percentage points compared with second-half 2018
- Net income of 162 million euros, or 1.7% of sales, after non-recurring expenses of 30 million euros
- Free cash flow generation of 237 million euros, up 90% compared with second-half 2018, corresponding to a cash conversion rate of 19%
- Order intake of 11.1 billion euros, representing 1.3 times original equipment sales
In an automotive market that declined 7% in the first half, we demonstrated our ability to accelerate our outperformance, which came out at 4 percentage points, and improve our profitability following the low point recorded in second-half 2018.
Despite the overall market decline of around 4% in 2019, all of the actions we rolled out to achieve a structural reduction in costs and capital expenditure enable us to confirm our operating margin (excluding share in net earnings of equity-accounted companies) objective, based on an operating margin of at least 6.3% in the second half and continued free cash flow generation. Valeo therefore confirms the strengthening of its strategic positioning in high-growth segments and the capacity to finance its dividend policy.
Valeo’s consolidated sales came to 9,776 million euros in the first half, down 1% compared with the prior-year period.
Original equipment sales totaled 8,220 million euros, down 3% on a like-for-like basis(2) and representing a 4 percentage point outperformance versus global automotive production. The Group’s outperformance accelerated over the first half (from 3 percentage points in the first quarter to 4 percentage points in the second quarter). Sales were affected in particular by the strong decline in automotive production in China, which fell 16% (IHS/CPCA(3) estimates) in the first half.