Faurecia rises full year guidance on first half performance

Worldwide
Published:  25 July, 2018

The French automotive seating and car parts manufacturer has reported a +10.9% sales growth in the first half of 2018, year-on-year, 910bps above worldwide automotive production growth (+1.8% according to IHS Automotive July 2018).

All business groups are reported to have posted solid sales growth in the first six months of the year (at constant currencies), significantly outperforming worldwide automotive production according to Faurecia; Seating +8.8%, Interiors +14.7%, and Clean Mobility +9.7%. Growth was recorded in all regions in the period; Europe +10.9%, North America +6.2%, Asia +17%, and South America +17%. Faurecia’s total sales reached €8,991 million in the first half, up +10.9% excluding a negative currency impact of 5.6% and the Group’s operating income grew +11.1% to €647.2 million, with profitability up by 40bps, to 7.2% of sales.

In Seating, sales totalled €3,781.5 million in H1 2018, against €3,636.7 million in the corresponding period a year ago; up +4% on a reported basis and up +8.8% at constant currencies, outperforming by 700bps worldwide automotive production growth (+1.8%, source: IHS Automotive July 2018). According to Faurecia, sales growth was driven by double-digit growth (at constant currencies) in Europe (+13.5%), Asia (+23.2%) and South America (+20.1%), “largely offsetting the expected drop in North America (-9.6%), which reflected the ramp-down in production of the Nissan Altima model and Mercedes models (R-Class/ML/GL)”. Sales in the period included €50 million (or 1.4% of last-year’s sales) due to the consolidation of the JV with Wuling. Operating income in the Seating segment reached €221.5 million (vs. €199.9 million in H1 2017), representing 5.9% of sales, an improvement of 40bps year-on-year.

Faurecia says it expects worldwide automotive production to grow by at least 2% in 2018, year-on-year, in line with the latest IHS forecast (+2.3%, source: IHS Automotive July 2018), leading the Company to upgrade its forecast for 2018; sales growth is forecast to increase by at least +8% or 600bps above worldwide automotive production growth, with an operating margin of at least 7.2% of sales. The manufacturer says it is on track to achieve its medium-term financial targets, as announced during the recent Capital Markets Day, held in Paris in May, with sales of at least €20 billion in 2020. Read more here.

Faurecia's Clean Mobility plant in Fort Wayne, Indiana, U.S.