Car parts maker Valeo appoints new CEO as company posts lower-than-expected 2021 cashflow

(Reuters) – French car parts maker Valeo said on Wednesday it had appointed deputy Chief Executive Officer Christophe Périllat as its new chief executive, confirming previously announced plans, as the company posted preliminary 2021 results including disappointing cashflow numbers.

Valeo’s outgoing Chief Executive Jacques Aschenbroich, who became CEO in 2009, will continue to act as chairman of the Board of Directors, the group said in a statement.

The group on Wednesday said its preliminarily full-year sales rose to 17.3 billion euros ($19.52 billion), slightly above its guidance range of 16.9 billion-17.2 billion euros.

Free cashflow, however, came in lower than expected, the company said, blaming the worldwide shortage in semiconductor supplies that forced it to shore up its stocks.

Valeo reported a full-year free cash flow of 290 million euros versus its guidance range of 330 million-550 million euros.

Périllat said in statement that “the inventory increase implemented to protect our customers will be gradually reversed in 2022, as supply conditions improve.”

Full-year figures are due on Feb. 25, the company said.

($1 = 0.8862 euros)

(Reporting by Anait Miridzhanian and Gilles Guillaume; Editing by Tassilo Hummel, Mark Porter and Diane Craft)