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Investing.com -- Valeo’s stock tumbled more than 13% on Friday after the automotive supplier reported weak full-year 2024 results, posting a slowdown in sales and a sharp decline in net profit.
The company reported a 3% drop in annual revenue to €21.49 billion, while net income plunged 27% to €162 million.
The downturn was driven by struggles in its high-voltage electric powertrain segment and a slowdown in new orders, raising concerns about the company’s growth prospects.
Despite achieving its profitability and cash flow targets, Valeo’s original equipment sales fell 2% on a like-for-like basis.
The decline was particularly pronounced in its high-voltage electrification business, which saw sales collapse by 39%.
The company pointed to lower production levels at certain European electric vehicle platforms as a key factor behind the slump.
Adding to the pressure, new order intake dropped to €17.8 billion, as automakers pushed back purchasing decisions amid economic uncertainty.
Valeo (EPA:VLOF) also disclosed that automakers had canceled orders representing about 10% of its 2022 and 2023 intake, totaling €7.3 billion.
This signals potential challenges in securing future revenue and casts doubt on the strength of its order pipeline.