[1/2] An employee wearing a protective face mask pushes a toolbox on wheels at a factory of manufacturer Valeo in Etaples near Le Touquet, France May 26, 2020. Ludovic Marin/Pool via REUTERS
Feb 23 (Reuters) - French car parts maker Valeo (VLOF.PA) on Thursday forecast strong sales growth this year, as record 2022 orders helped by demand for car electrification and driving assistance technology helped it navigate a challenging year for the automotive sector.
Valeo is betting on car electrification and the adoption of advanced driving assistance systems (ADAS), as governments and companies shift towards a low-carbon economy while consumers warm to the idea of automated driving.
Its record order intake of 32.6 billion euros in 2022 included many orders for electric vehicle components and ADAS technology, Chief Executive Christophe Périllat told reporters in a call.
The company's core profit (EBITDA) for 2022 came in at 2.40 billion euros, above the 2.34 billion expected by analysts in a company-provided poll.
But Périllat still flagged macroeconomic pressures including inflation, chip shortages, COVID-19 in China and Russia's invasion of Ukraine contributing to "relatively weak" global car production in 2022.
Valeo said the net impact of higher costs of raw materials, energy and transportation in 2022 was roughly 200 million euros, and about 60 million for wages.
It will aim to curb inflationary impacts this year through productivity, cost reduction and price increases, the CEO said in a statement, adding in the call that the company has "passed onto clients a significant chunk of our costs."
The group expects to record an improved operating margin between 3.2%-4% in 2023, against the 3.2% recorded in 2022.
It said it will propose a dividend of 0.38 euro per share.
