Skip navigation
Newswire

Valeo posts 10 pct rise in Q1 net profit

PARIS, April 23 (Reuters) - Europe's largest listed car parts maker Valeo posted a 10 percent rise in first-quarter net profit on Wednesday as tough cost-cutting helped it resist a wobbly European car market.

Valeo said in a statement net profit in the first three quarters climbed to 22 million euros from 20 million previously, while operating profit rose to 109 from 98 million, good for an operating margin of 4.5 percent versus 3.8 percent.

The bottom line lagged forecasts of six analysts polled by Reuters, who predicted net profit of 37 million euros ($40.35 million), but operating profit of 114 million euros.

Sales dipped four percent to 2.44 billion euros but edged up 1.5 percent at constant exchange rates.

Valeo said sales of its windscreen wipers, headlights, hi-tech parking gadgets and other parts outpaced the market in Europe and Asia but not in North America, where it is still turning around a loss-making subsidiary.

It said it had reduced the number of its industrial sites by eight during the first three months of the year to adapt to lower car production. "The group thus has the means to continue to progress in 2003," it said in a statement, giving no firm forecasts for the year.