PARIS - Shares of French suppliers were battered last week after Valeo said it would not reach earnings targets for the year.
The French giant said on September 18 that its operating margin for 2000 would not reach 7 percent as expected. The supplier said it would likely be 6.3 percent.
The company blamed an 'unexpected accumulation of negative factors.' They include: worsening pressure on raw material prices; problems in North America, including a delay in the turnaround of its North American wiper and motors operations and a fall in aftermarket sales.
The next day, Valeo's stock fell 11.9 percent to E48.9. Shares of other French suppliers also fell: Sommer-Allibert dropped 9.4 percent to E42.5 and Faurecia fell 5.6 percent to E38.
Michelin also disclosed disappointing first-half results last week.
Rising inventory, currency moves and a 15 percent increase in raw material prices caused the slide, said Michelin.
On September 20, the day after its announcement, Michelin shares fell 0.77 percent to E32.1.
See Stock Watch chart on Page 58.