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Shares in Valeo SE
FR,
traded lower on Friday after the auto supplier warned that its margins would shrink this year before improving in 2025.
At 0901 GMT, shares in Valeo were down 5% at EUR22.44.
For 2022, Valeo guided for earnings before interest, taxes, depreciation and amortization to slip to 11.8%-12.3% of sales.
The French company guided for Ebitda to rise to about 14.5% of sales in 2025. For 2021, Valeo’s Ebitda stood at 13.4% of sales, the company said, confirming preliminary figures released in January.
Valeo’s 2022 Ebitda guidance is below a Vara consensus, partly because it includes the effect from its takeover of a joint venture with Siemens AG whereas analysts’ estimates didn’t, Jefferies analysts said. “However, guidance looks still a bit light,” they said.
As part of a set of targets through 2025 laid out Friday, Valeo said it expects sales to rise to about 27.5 billion euros ($30.78 billion) in 2025 on expectations that the automotive market will recover strongly and that it will be able to outperform it.
Write to Cristina Roca at cristina.roca@wsj.com
