PARIS — Valeo is in a “sound monetary place” for 2021 after a powerful second half efficiency in 2020, CEO Jacques Aschenbroich stated, and is concentrating on free money circulation of 550 million euros ($668 million) this 12 months. 

Free money circulation within the second half was a report 1.34 billion euros, Valeo stated, and 294 million euros for the 12 months.

For the 12 months, Valeo recorded a lack of 1.09 billion euros on 16.4 billion euros in gross sales, a decline of 16 p.c from 2019 gross sales of 19.5 billion euros. Web earnings was optimistic within the second half at 126 million euros.

Aschenbroich credited effectivity and cost-cutting measures in the first half with bolstering second-half efficiency. 

He stated in a news release Friday that Valeo’s place in electrification and superior driver help techniques (ADAS) would allow it to outperform the market in coming years. These two enterprise items carried out finest versus the market in 2020, with Consolation and Driving Help System enterprise group six share factors over the market and powertrain (together with 48 volt delicate hybrid techniques) 4 share factors forward.

The provider’s targets for 2021 are to extend gross sales by 12 p.c to 18.2 billion euros; and lift earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) by 63 p.c to 2.45 billion, or 13.4 p.c of gross sales. 

Aschenbroich described this as a “cautious” strategy due to continued uncertainty across the semiconductor scarcity. Valeo is predicting a manufacturing improve of 10 p.c this 12 months, 4 share factors beneath IHS Markit’s prediction, a reference for a lot of automakers and suppliers.

Valeo, primarily based in Paris, ranks No. 10 on the Automotive Information Europe listing of top 100 global suppliers, with automotive gross sales of $18.05 billion in 2019.

Valeo is making ready for a management transition, with Aschenbroich stepping down as CEO in January 2022 after greater than 10 years within the put up, though he’ll retain his place as chairman of the board of administrators. 

Aschenbroich might be succeeded by COO Christophe Perillat, who on Friday was named affiliate CEO. Perillat is anticipated to be named deputy CEO at Valeo’s annual shareholders’ assembly in Could, the provider stated.