Auto supplier Valeo rises as 2021 results beat expectations

Navya SA

27/01/2022 11:32

** Shares in Valeo  VLOF.PA  rise around 2.2% after the
French car parts supplier posted preliminary FY results ahead of
its own guidance  urn:newsml:reuters.com:*:nL8N2U65MW
    ** The company reported preliminary FY sales of EUR 17.30
bln ($19.36 bln) vs. company guidance of EUR 16.9-17.2 bln,
consensus estimate of EUR 17.26 bln; H2 EBITDA of EUR 1.11 bln
also beat its guidance and consensus at EUR 1.05 bln and EUR
1.07 bln, respectively
    ** Its free cash flow came in lower than expected, weighed
by the global chip shortage that forced it to shore up its
stocks, but Valeo said it would this year phase out the higher
inventory
    ** "The negative FCF factors in H221 are temporary and will
fully reverse resulting to a positive contribution to FCF in
2022, which is somewhat encouraging," RBC Capital Markets says
    ** The company also said it had appointed Christophe
Périllat as its new CEO, confirming previously announced plans
    ** Separately, the group also extended its partnership with
Navya  NAVYA.PA  - whose shares are up 3% - to develop a safety
system for self-driving vehicles  urn:newsml:reuters.com:*:nASN0022LG

($1 = 0.8936 euros)

 (Reporting by Olivier Cherfan)
 ((olivier.cherfan@thomsonreuters.com))