valeo se said wednesday that sales rose in the full year while free cash flow was hit by an increase in inventories partly due to the semiconductor shortage the french automotive supplier said that according to preliminary results sales amounted to 173 billion euros 1954 billion in 2021 up 6 on a likeforlike basis compared to the year earlier the figure came in ahead of the companys guidance of eur169 billioneur172 billion the earnings before interest taxes depreciation and amortization margin was 134 of sales in 2021 reaching the highend of valeos guidance of 13134 valeo said free cash flow was eur290 million in 2021 falling short of guidance of between eur330 million and eur550 million this was mainly due to a eur430million hit from the increase in inventories to supply customers without disruption as a result of the semiconductor shortage the volatility of customer production as well as oceanfreight disruptions these negative factors are temporary and will be fully reversed resulting in a positive contribution to free cash flow generation in 2022 the company said