(Reuters) – French car parts maker Valeo on Friday forecast its core profit margin would come between 11.8% and 12.3% this year, below last year’s level, and unveiled a strategic plan for 2021-2025.
The group, which specialises in the design, production and sale of components and services for the automotive sector, reported a margin on earnings before interest, taxes, depreciation, and amortisation of 13.4% in 2021, in line with its own guidance.
However, its free cash flow at 292 million euros ($327.36 million) fell short of its previously announced target range of 330-550 million euros.
Valeo also provided a new medium-term outlook, saying it aims to increase its original equipment sales by around 13% and to outperform the market by more than 5% over the 2021-2025 period, led by volumes recovery.
($1 = 0.8920 euros)
(Reporting by Olivier Cherfan and Dagmarah Mackos; editing by Milla Nissi)
