Faurecia’s H1 results impacted by lower demand in China

Worldwide
Published:  24 July, 2019

Despite a challenging first half, the French automotive parts supplier says that all its three key business groups outperformed the global automotive production average.

Faurecia’s sales totalled €8,972 million in the first half of 2019, down 0.2% compared with the same period in the prior year. Operating income, representing 7.2% of sales, stood at €645 million (-0.4%) and net income was €346 million. According to the manufacturer, all three historical business groups outperformed the worldwide automotive production; down 7%, according to the IHS Markit forecast dated July 16. All regions, except North America which was impacted by the end of production of a significant Seating program for Daimler in Cottondale, are said to have outperformed local automotive production.

“The first half of the year was tougher than expected, mostly due to significantly lower production volumes in China”, said Patrick Koller, CEO, Faurecia. According to Koller, Faurecia is currently focussed on executing a significant cost reduction plan, with a new strategic plan and profitable growth roadmap to be presented later this year. “Our first-half performance and forecast for the second half allow us to confirm our guidance for the full-year”, he added.

Faurecia at the Shanghai Motor Show