Valeo

Valeo is a large company specialized in the equipment and subsets of the Industrie Automobile.

History

The French Public limit company of Ferodo, which will become Valeo thereafter, is created in 1923 with Saint-Ouen, (Seine-Saint-Denis). It distributes then produced trimmings of Frein S and Embrayage S under license of the English company Ferodo (Ferodo the U.K.). The company starts to diversify as from the years 1960: brakes (1961), systems thermal (1962), components and electronic systems (1963), lighting (1970), systems electric (1978).

The May 28th 1980, the company takes the name of Valeo, “I go well” in Latin, this name being at the time that of Italian subsidiary company of the Ferodo group.

The company was formerly strongly implied in the manufacture of components including of the Amiante (coupling systems, trimmings and brake pads).

It is starting from the beginning of the year 1980 that Valeo reaches the dimension of an international company among most important of the sector of the automobile equipment, by leading a strategy of external redeployment (acquisitions) very intense. Today, the Valeo group is composed of 12 subsidiary companies for the majority exits of repurchases of foreign companies of the sector, last acquisition, in January 2005, being division “  Engine control   ” of the American equipment supplier Johnson Controls.

The objective of the group is to position among the five larger world equipment suppliers in 2010, in particular by the continuation of its development abroad and in particular in China. The group is directed since March 2001 by Thierry Morin.

Organization

In 2007, Valeo is present in 29 countries and has 131 production centres, 68 research centres and Développement, and 9 platforms of distribution. In 2006, the group carried out 69% of sound Turnover in Europe, 13% in North America, 13% in Asia and others, and 5% in South America.

The group is divided into 3 large poles of activities and 11 industrial branches, distributed as follows:

  1. Pole Assistances with control:

  2. * interior Controls (VIC),
  3. * Lighting indication (VLS),
  4. * Systems of wiping (VWS);
  5. Pole Effectiveness of the propulsion:
  6. * Control systems engine (VEMS),
  7. * electric Systems (VES) (example: the system Stop & Start),
  8. * Thermal engine (VEC),
  9. * Compressing (VC),
  10. * Transmissions (VT);
  11. Pole Improvement of comfort:
  12. * Safety Cockpit (VSS),
  13. * Thermal Cockpit (VCC),
  14. * Electronic and systems of connection (VECS).

Lastly, the branch Valeo Service (VS) is dedicated to the market of the second assembles and markets the Valeo products near the professionals (concessions, garages, distributers of spare parts). This market of the second goes up accounts for 18% of its turnover.

General President-directors

  • No5el Goutard: 1987 - May 2000
  • Andre Navarri: May 2000 - February 2001
  • Thierry Morin: since February 2001

5 Axes

Valeo conceived and applies the method known as of the 5 Axes, foundation of the culture of company of the group. It aims at reaching the satisfaction of the customer by the attack of the zero defect whatever the type of product and the place of production. The 5 Axes are:
  • the implication of the personnel;
  • the system of production;
  • the integration of the suppliers;
  • the constant innovation;
  • total quality.

Customers

Valeo equips the principal world car manufacturers, among whom one can quote:

Subsidiary companies of Valeo

Competitors

The main competitors of Valeo are the equipment suppliers Bosch, Hella, Delphi, Magneti-Marelli, Siemens VDO, Denso and Visteon.

Key figures

; Turnover: French standards (M€):
  • 2002: 9.803
  • 2003 : 9.234
  • 2004 : 9.439
In 2006 Valeo is the 9th world equipment supplier See World classification of the companies leader by sector

Standards IFRS (M€):

  • 2004: 9.229
  • 2005 : 9.933

; Distribution of CA by line of products:

  • Electronic: 63% Thermal
  • : 30%
  • Transmissions: 7%

; Operational result: Standards IFRS (% of CA)

  • 2004: 3,6 %
  • 2005 : 3,1%

Stock exchange data

Valeo is with dimensions with the Bourse de Paris - Code ISIN: FR0000130338

  • Market cap: 2,44 billion euros

  • Many actions: 77.510.357
  • Dividend: 1,1€ by action
  • PER: 17,8

  • Notes allotted by Moody' S:

    • Debt short term: P-2
    • Debt long run: Baa2

  • Performances of the title at December 16th, 2006:

    • Variation over one year: -0,82%
    • low/higher over a year: 25,00€/35,40€

  • Elements of analysis to explain the performance:

In spite of CA in rise, the not very encouraging prospects for automobile industry (low growth of the market in Europe and North America, American manufacturers in difficulty) as well as the very important rise of the courses of the raw materials since 2004 have a negative effect on the course of the action. The margins in particular are very affected by the rise in the price of metals (+160% for the Zinc over the year 2005, for example). The analysts fear that profitability is not still degraded in 2006, which led Moody' S to lower the note of the debt long run of Baa1 with Baa2 on June 21st, 2006.

See too

related Articles

external Bonds

  • Official site
  • Valeo MotorSports
  • Valeo and Luc Alphand at the 24 Hours of Mans

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