Shares of French auto parts producer Valeo (FR.FR) drops 10% as the company trimmed 2024 revenue forecast. Valeo now expects €21.3 billion, vs €22 billion previously. The revision follows a challenging Q3, marked by lower demand; sales dropped by 5% YoY to €4.97 billion. What's important, today overall sentiments across the automotive sector are weak, after Mercedes-Benz quarterly report.
- Valeo's original equipment sales in Q3 fell by 2% on a like-for-like basis. In Europe and Africa, original equipment sales outpaced regional automotive production by 6 percentage points, driven by powertrain products, and driver-assistance systems as well as display technology segments.
- But in the North America market, sales lagged, trailing production by 1 pp. even despite new electrification deals; also China showed a huge drop, underperforming production by 9 pp.
- Valeo cited the worsening economic environment and 'significant uncertainty surrounding automotive production volumes' and declared new 2025 guidance when the company will publish final 2024 results.
Source: xStation5
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile appThis content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
