Valeo Reports First Quarter 2011 Organic Sales Growth of 15.6% (+19.2% in Original Equipment Sales), With all Business Groups and all Production Regions Outperforming the Market

Paris (ots/PRNewswire) - Following the meeting of its
Board of Directors today, Valeo released its sales figures for the
first quarter 2011:

In million euros Q1 2010* Q1 2011* % change % change
2011/2010 2011/2010**
Original equipment 1,898 2,263 +19.2% +17.4%
Aftermarket 351 361 +2.8% +4.5%
Other 60 45 -25.0% -26.5%
Total sales 2,309 2,669 + 15.6% +14.3%

* Unaudited ** On a like-for-like basis

Jacques Aschenbroich, Valeo's Chief Executive Officer, said: "Our
strategic focus on developing products that reduce CO2 emissions and
on increasing sales in Asia and emerging markets continued to pay off
well in the first quarter of 2011. Our performance for the period
once again demonstrated our ability to grow significantly faster than
the market in all of our businesses and production regions. I'm
confident that we will continue to outperform the market throughout
the rest of the year."

In the first quarter 2011, global automotive production remained
high in all production regions except Japan where output fell 29%.
Global passenger car production was up 4.5% compared with the
year-earlier period.

In this environment, original equipment sales rose 19.2% (+17.4%
like-for-like) to EUR2,263 million, despite a 22% drop in Japan,
outperforming market growth by 12 points. Aftermarket sales were up
4.5%, at EUR361 million.

Total consolidated sales amounted to EUR2,669 million, up 15.6%
compared with the first quarter 2010. The like-for-like increase was
14.3%.

Above-market growth in original equipment sales in all production
regions

Original 1st quarter*
equipment
(in million
euros)
2010 2011 % change % change
Valeo automotive
sales** production
Europe 1,170 1 365 +17% +8%
Asia excl. Japan 258 310 +17% +9%
of which China 140 161 +14% +7%
Japan 117 101 -22% -29%
North America 212 317 +46% +15%
South America 143 170 +10% +9%

*Unaudited ** Like-for-like

Automotive production rose 8% in Europe and 15% in North America
compared with the first quarter 2010. In Asia, production declined by
1% due to the consequences of the earthquake in Japan which led to a
29% drop in the country's output for the quarter.

Against this backdrop, the Group's original equipment sales
outperformed the market in all production regions:

- In Europe, Valeo sales growth of 17% thanks to its favorable
customer positioning and product mix, and the ramp-up of certain
technologies, particularly in the Powertrain Systems and Comfort &
Driving Assistance Systems Business Groups;

- In Asia, excluding Japan, Valeo sales growth of 17% thanks to
increased market shares;

- In North America, Valeo sales growth of 46% thanks to its
favorable customer positioning, improved product mix and market share
gains.

These dynamic performances in all regions, combined with a
positive geographic mix, enabled the Group to outperform global
original equipment market growth by 12 points in the first quarter.

Europe accounted for 60% of original equipment sales in the first
quarter compared with 63% in the same period of 2010. North America
accounted for 14% versus 11% in the same period of 2010, and Asia was
down by 1 point versus the same period of 2010, at 18%.

All Business Groups contributed to the increase in sales and
outperformed the growth in global automotive production

Total sales 1st quarter*
In million euros
2010 2011 % % change
change OE sales**
Valeo
sales**
Comfort & Driving 408 481 +17% +19%
Assistance Systems
Powertrain Systems 636 767 +21% +25%
Thermal Systems 693 783 +10% +11%
Visibility Systems 591 664 +12% +17%

*Unaudited ** Like-for-like

The Business Groups all delivered dynamic performances, with
original equipment sales rising faster than global automotive
production, which was up 5% in the first quarter.

The Group also achieved excellent results with its German
customers, which now account for 29% of total original equipment
sales compared with 27% in the first quarter 2010.

Situation following the earthquake in Japan

Valeo does not expect global automotive production (except in
Japan) to be seriously affected up until the end of May.
Nevertheless, beyond that date, possible problems in the supply chain
for electronic and other components cannot be ruled out, and
automotive production may also be disturbed.

Highlights

Valeo announced on February 23, 2011 the signing of an agreement
with RHJ International SA and Nissan to acquire Niles, a Japanese
automotive supplier which would reinforce Valeo's Comfort and Driving
Assistance Systems Business Group. The transaction amounts to 320
million euros (enterprise value). With this acquisition, Valeo would
strengthen its position in Asia (Japan, China, Thailand) and with
Japanese automakers, particularly Nissan. The Group would thus become
world leader in the automotive Human-Machine Interface market. This
external growth project is within the framework of the strategy
presented to the Group's shareholders in 2011, aiming to reinforce
Valeo's presence in Asia. The agreement is subject to various
preconditions, such as approval of the anti-trust authorities, before
it can enter into effect.

On March 9, 2011 Valeo organized an investor day to present its
new medium-term financial objectives.

On April 1, 2011 two new facilities were opened in China - an
Electronics Expertise Center in Shenzhen that will develop electronic
hardware and services for all Group entities and a wiper systems
plant in Wenling that will significantly increase wiper and washing
system production capacity for both Chinese and international
customers.

Financial calendar

Annual Shareholders' Meeting, June 8, 2011.

The Board of Directors decided to propose to the 2011 Annual
Shareholders' Meeting the appointment of Mr. Thierry Moulonguet as a
new Member of the Board. Mr. Thierry Moulonguet spent the majority of
his career with the Renault-Nissan group, where he was notably
Executive Vice-President and Chief Financial Officer and Member of
the Executive Committee then Special Adviser to the CEO of Renault up
until his departure on March 31.

Valeo is an independent industrial Group fully focused on the
design, production and sale of components, integrated systems and
modules for the automotive industry, mainly for CO2 emissions
reduction. Valeo ranks among the world's top automotive suppliers.
The Group has 109 plants, 20 research centers, 38 development
centers, 10 distribution platforms and employs 60,900 people in 27
countries worldwide.

For more information about the Valeo Group and its businesses,
please visit http://www.valeo.com

Safe Harbor Statement

Statements contained in this report, which are not historical
fact, constitute "Forward-Looking Statements". Actual results may
differ materially due to numerous important factors. Such factors
include, among others, the cost and timing of implementing
restructuring actions, the company's ability to generate cost savings
or manufacturing efficiencies to offset or exceed contractually or
competitively required price reductions, conditions in the automotive
industry, and certain global and regional economic conditions. The
company assumes no responsibility for any analysts' estimates and any
other information prepared by third parties which we may reference in
this report. Valeo does not intend or assume any obligation to review
or confirm analysts' estimates or to update any forward-looking
statement to reflect events or circumstances after the date of this
report.

ots Originaltext: Valeo
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Contact:
For more information, please contact: Fabienne de Brebisson,Group
Vice-President, Communications, Phone: +33-1-40-55-20-65;
ThierryLacorre, Investor Relations Director, Phone: +33-1-40-55-20-39