PARIS -- Valeo says it has enough liquidity reserves and has taken "drastic cost-cutting and cash preservation measures" to help it survive the coronavirus crisis, as first-quarter revenue declined 8 percent.
The supplier said it was confirming the suspension of any 2020 guidance, given the uncertainty related to the crisis, which has shuttered factories and showrooms in Valeo's major markets and regions.
Overall sales fell in the first quarter to 4.45 billion euros ($4.8 billion), from 4.84 billion euros in 2019, Valeo said in a statement.
Sales fell the most in the Asia/Middle East/Pacific region, which includes China, declining 16 percent to 1.02 billion euros ($1.1 billion). Europe/Africa region sales fell by 7 percent to 1.89 billion euros ($2 billion), and North American sales fell by 3 percent to 800 million euros ($868 million).
CEO Jacques Aschenbroich said that with 2.3 billion euros ($2.5 billion) in undrawn credit lines Valeo has "sufficient liquidity to withstand any further prolongation of the current crisis."
Valeo said that it had outperformed the global auto market by 16 percentage points in the quarter. Global auto sales declined by 24 percent in the first quarter according to figures from IHS Markit and the Chinese auto association CPCA, Valeo said.
Earlier this month, Aschenbroich and other Valeo executives took pay cuts, and the supplier secured 1 billion euros ($1.1 billion) in additional credit lines. It will pay a dividend on 2019 earnings of 200 million euros ($217 million) per share.
Valeo ranks 10th on the Automotive News list of Top 100 global suppliers, with automotive revenue of $19.7 billion in 2018.
