© Reuters. FILE PHOTO: The corporate emblem of auto components maker Valeo is seen outisde a manufacturing unit at Etaples, northern France, December 28, 2020. REUTERS/Charles Platiau

PARIS (Reuters) -French automotive components maker Valeo (PA:) on Thursday confirmed its 2021 monetary outlook because it posted elevated first-half gross sales and revenue, including it anticipated the scarcity of key expertise chips to ease.

Valeo’s first-half earnings earlier than curiosity, tax, depreciation and amortisation (EBITDA) rose to 1.21 billion euros ($1.41 billion) from 202 million a yr earlier, whereas gross sales rose to about 9 billion euros from 7.1 billion.

“In a difficult surroundings marked by a scarcity of digital elements and rising uncooked materials costs, we will affirm our aims for full-year 2021,” mentioned Valeo chairman and CEO Jacques Aschenbroich.

Valeo’s 2021 monetary outlook forecasts progress in world automotive manufacturing of round 9%, gross sales between 17.6-18.2 billion euros from 16.4 billion in 2020, and free money circulate between 330-550 million euros, up from 294 million in 2020.

Aschenbroich mentioned he anticipated the worldwide auto business was on the peak of points relating to a scarcity of chips, and that the state of affairs would enhance between now and the tip of the yr.

South Korea’s Hyundai Motor Firm (OTC:) additionally mentioned this week it anticipated the worldwide chip scarcity to develop into much less acute within the second half of the yr.

Semiconductors are important to the manufacturing of built-in circuits or chips, and trendy, technologically superior vehicles use a large number of sensors and controllers which depend on chips to ship data all through the automobile. (reut.rs/3y2zdYH)

Earlier this week, Texas Devices (NASDAQ:) mentioned it might be ramping up its manufacturing capability – which might ease points relating to the scarcity of these expertise chips.

($1 = 0.8502 euros)

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