Valeo's revenue rose 8% in the third quarter. But the company warned that the general strike caused 160 million euros in sales losses and about 50 million euros in operating profit losses.
According to foreign media reports, Valeo warned on October 24 that as of now, the GM strike has caused Valeo a sales loss of 160 million euros (about 178 million US dollars). And an operating profit loss of approximately 50 million euros (approximately $ 55.5 million).
The French auto supplier also said that the company's revenue in the third quarter reached 4.772 billion euros, an increase of 8%. Despite forecasting a 6% decline in the automotive industry's output (previously expected to be 4%), Valeo maintained its 2019 guidelines (excluding the one-time impact of the GM strike).
The company ’s chairman and CEO Jacques Aschenbroich said in a statement: "In order to continue with the plans set out in the first half of this year, we will continue to launch projects to reduce costs by more than 100 million euros and reduce capital expenditures by approximately $ 200 million "This will help improve operating margins and gain free cash flow in the second half of this year."
As part of the current review of its business portfolio, Valeo also stated that the company will withdraw from the top pillar module segment and will no longer accept orders for the product line.
Last week, General Motors and the United Auto Workers' Union (UAW) reached a preliminary agreement on a new four-year labor agreement, one step closer to ending this month-long strike.
Valeo ranks 10th in Automotive News's Global Top 100 Suppliers list. In fiscal 2018, the company had sales of $ 19.68 billion.