Faurecia’s Q3 sales slightly below global automotive production

Worldwide
Published:  17 October, 2019

Sales for the France headquartered automotive parts and seats supplier amounted to €4.18 billion in the third quarter of 2019.

Faurecia’s worldwide sales increased 4.3% on a reported basis in the third quarter of the year, to €4,185 million. At constant currencies, sales were down 3.7%, excluding Clarion, and said to be impacted by a peak effect of -4.5% or €179 million due to the phasing of the announced Seating EoPs (End of Production), which is expected to reduce from the fourth quarter, and an effect of -0.6% or €23 million due to the GM strike in the U.S.. Interiors and Clean Mobility are said to have significantly outperformed worldwide automotive production. For the first nine months of the year, sales totalled €13,157 million, representing a “strong outperformance” of 290 basis points (bps).

The Group has confirmed its 2019 guidance; with sales growth outperformance of between 150 and 350bps (at constant currencies and excluding Clarion consolidation), an operating income increase in value and operating margin of at least 7%, and a net cash flow of at least €500 million.

Faurecia has also announced that it has signed a Memorandum of Understanding (MoU) to acquire the remaining 50% of its SAS joint venture from Continental. Established in 1996, the JV is said to have become a key player in complex interior module assembly and logistics. The company employs 4,490 people in 19 facilities in Europe, North America and South America, and sales are expected to reach around €700 million in 2019. Faurecia would acquire the 50% share of the JV from Continental for €225 million and closing is expected in early 2020.