Monday , October 3 2022

Faurecia opposes car crash and confirms its goals



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Faurecia, a car maker on Tuesday, reported a net profit of 1 percent to 346 million euros in the first half of the year, confirming all its annual targets despite the challenging industry environment.

The operating profit of this subsidiary of the PSA manufacturer remains stable (-0.4%) to 645 million euros, or 7.2% of sales. These figures are better than the analysts surveyed by Factset.

With the exception of the currency effect and without taking into account the new Japanese subsidiary Clarion (navigation systems) acquired at the beginning of the year, sales fell by 2.8% from January to June, while the world automotive market is expected to decline 7% .

"The first half of 2019 is more difficult than expected, mainly due to the significant decline in Chinese production, and in this context we have again proven the sustainability of our financial results," Patrick Kohler said. Chief Executive Officer of Faurecia, quoted in a group statement.

The equipment manufacturer, which provides manufacturers, cabins, vehicle electrification solutions and navigation systems, suffered as its competitors from the recession of the automotive sector since the summer of 2018, mostly caused by China, the world's first market.

The group expects a market decline of 1% at the beginning of the year and now the forecast is -4% in 2019. Despite these assumptions, it is more pessimistic, he confirmed on Tuesday all his annual targets.

Faurecia still expects growth in sales to "surpass global automotive production by 150 to 350 basis points," with the exception of Clarion's consolidation.

Operating profit should increase over the year and the operating margin will remain "7% or more" of sales, while the positive cash flow should exceed 500 million euros, including Clarion.

AFP / JH

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