Car parts group Valeo drops 2020 targets, gets 1 billion euros of new credit lines

FILE PHOTO: The logo of Valeo is seen at the high profile startups and high tech leaders gathering, Viva Tech,in Paris, France May 16, 2019. REUTERS/Charles Platiau/File Photo

PARIS (Reuters) – French car parts group Valeo (VLOF.PA) abandoned its 2020 financial targets on Tuesday because of the hit to its business from the coronavirus outbreak, although it got 1 billion euros ($1.1 billion) in extra credit lines to shore up its finances.

“Given the drop in business activity, which began to impact Valeo’s plants in Europe and North America in the last two weeks of March, and the lack of visibility regarding when the crisis will end, the 2020 financial objectives announced by Valeo in connection with its 2019 full-year results are no longer valid,” Valeo said in a statement.

Valeo said that after securing the new credit lines from its banks, it now had 2.3 billion euros in total of undrawn credit facilities.

Reporting by Sudip Kar-Gupta; Editing by Kirsten Donovan

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