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UPDATE 1-Valeo lifts 2013 goal on stabler Europe

(Adds CEO and analyst comment, detail)

By Gilles Guillaume

PARIS, July 30 (Reuters) - French auto parts maker Valeo raised its 2013 earnings goal on Tuesday, predicting a European market stabilisaton after its operating income and sales advanced in the first half.

Valeo expects to improve on the 6.2 percent operating margin recorded last year, the company said in a statement, after operating income rose 3.7 percent to 384 million euros ($509 million) before one-off gains and expenses.

"I believe the worst is now behind us in Europe," Chief Executive Jacques Aschenbroich told reporters during a briefing at Valeo's Paris headquarters.

The improved full-year guidance assumes "stabilized market conditions" in the region, the company said.

European auto suppliers are looking elsewhere for future growth as their home region nears a sixth consecutive year of falling vehicle sales. A longed-for bottoming-out, even at the current two-decade low, would nevertheless bring some reassurance and increased visibility.

The European slump put a 5 percent dent in order intake, which came in at 7.3 billion euros, also highlighting the overseas shift. Asia claimed 24 percent of sales to vehicle manufacturers but 39 percent of new orders.

Valeo's net income fell 1.6 percent to 190 million euros in January-June, on a 2.8 percent gain in sales to 6.17 billion.

Net debt fell 306 million euros in six months to 457 million euros as of June 30. The "strong beat on net debt" is likely to outshine Valeo's more marginal increase to profit guidance, Barclays analyst David Arnold said in a note.

The company had previously forecast flat operating income before one-offs, on 2013 sales outperforming all regional markets. The improved guidance was underpinned by a stronger market outlook.

Valeo said it sees a 2-3 percent European production decline in 2013 - more modest than the 4 percent drop predicted in February. Its global production growth forecast doubled to 2 percent.

($1 = 0.7545 euros) (Additional reporting by Laurence Frost; Editing by Christian Plumb)