Robust profitability for Faurecia

Worldwide
Published:  27 July, 2016

The France based provider of innovative solutions and qualitative equipment to the automotive industry has reported strong profitability in the first six months of 2016.

Faurecia’s consolidated sales totalled €9,531.6 million in the first half of 2016, against €9,488.7 million in the same period the prior year, up 0.5% on a reported basis and +3.4% on an organic basis. Operating income stood at €490 million, or 5.1% of total sales, compared with €384 million and 4% of total sales in 2015.

In the automotive seating segment, product sales totalled €3,134.9 million, up from €2,938.1 million in the first half of 2015 (+6.7% on a reported and +9.2% organic), driven by a number of launches for Nissan, Ford, BMW and Daimler. Operating income for the segment was €175.4 million, or 5.3% of total sales, versus €139.2 million in the first half of 2015.

The supplier says it benefitted from the sales growth Europe, a significant improvement of the industrial performance in North America and a strong contribution from Asia. Consolidated net income (Group share) stood at €245 million, compared with €157 million in H1 2015 (+56%) and EBITDA grew €136 million to €814 million, up 20%.

Product sales (parts and components delivered to manufacturers) were €7,294.7 million versus €7,231.7 million in the first half of 2015; +0.9% on a reported basis and +4.2% on an organic basis.

In terms of customers, Renault-Nissan represented the highest sales increase (+18%) on an organic basis, confirming its position as Faurecia’s third largest client, followed by Ford +11%. Sales to Chinese OEMs increased by an impressive 31%, and now account for 12% of sales in China.

Product sales in Europe totalled €3,833.1 million in the first half of 2016, against €3,612.0 million in H1 2015 (+6.1% reported and +7.1% organic). According to Faurecia, car manufacturers increased production in Europe (including Russia) by 4.5% in the period.

In North America, product sales fell 3.8% on a reported basis (-3.1% organic) in the period to €2,067.8 million against €2,148.8 million in the first half of 2015. FCA’s decision to drastically cut production of the Chrysler 200 before discontinuing it in spring 2017 is said to have negatively impacted Faurecia’s sales by €97 million. Sales in the region increased 7% to Renault-Nissan and 20% to Daimler.

In Asia, product sales decreased 4.3% on a reported basis (+3.8% organic) to €1,106.8 million against €1,156.8 million in H1 2015. Overall, sales in China dropped 11.5% on a reported basis (-3.7% organic), but increased 31% (organic) to OEMs. 

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