Valeo forecasts strong sales growth this year, as record 2022 orders helped by demand for car electrification and driving-assistance technology helped it navigate a challenging year for the automotive sector.

The group is targeting sales of between $23 billion and $24 billion this year, against the $21 billion posted for 2022, the company said in a statement.

The 2022 performance was in line with its guidance from October.

Valeo is betting on car electrification and the adoption of advanced driving assistance systems (ADAS), as governments and companies shift towards a low-carbon economy while consumers warm to the idea of automated driving.

The supplier’s record business backlog of 32.6 billion euros ($34.4 billion) in 2022 included many orders for EV components and ADAS technology, CEO Christophe Périllat told reporters in a call.

The company’s core profit (EBITDA) for 2022 came in at 2.40 billion euros ($2.5 billion), above the 2.34 billion expected by analysts in a company-provided poll.

Net income in 2022 rose 31 percent to 230 million euros ($243 million). The Paris-based company reports financial results every six months.

But Périllat still flagged macroeconomic pressures including inflation, chip shortages, COVID-19 in China and Russia’s invasion of Ukraine contributing to “relatively weak” global car production in 2022.

Valeo said the net impact of higher costs of raw materials, energy and transportation in 2022 was roughly 200 million euros, and about 60 million for wages.

The supplier will aim to curb inflationary impacts this year through productivity, cost reduction and price increases, the CEO said in the statement, adding in the call that the company has “passed onto clients a significant chunk of our costs.”

The group expects to record an improved operating margin between 3.2 percent and 4 percent in 2023, against the 3.2 percent recorded in 2022.

The supplier said it will propose a dividend of 0.38 euro per share.

Valeo ranks No. 11 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $16.7 billion in 2021.