Faurecia’s sales impacted by COVID-19 disruption

Worldwide
Published:  22 April, 2020

Reported sales for the automotive seating and components manufacturer declined 13.5% in the first quarter of the year.

Faurecia has posted sales at constant scope and currencies down 19.7%, against a 23.6% decline in worldwide automotive production, as per the IHS Markit dated April 2020, representing an outperformance of 390bps. Reported sales were down 13.5% to €3,739.3 million in the quarter, including a positive scope effect of €268 million (+6.2%) due to the consolidation of three months of Clarion and two months of SAS. Currencies are said to have had a limited negative impact of €2.5 million, representing a decrease of 0.1% of sales in 2019.

On a reported basis, sales in Europe, which represents 52% of Group sales totalled €1,930.7 million in the first quarter (-12.9%), while sales in North America (27% of Group sales) amounted to €1,014.0 million (-9.2%). In Asia (17% of Group sales), sales totalled €635.1 million (-20.4%). In China, which represents 56% of Group sales in the region, sales amounted to €357.3 million (-40.8%) in the quarter. In South America (3% of Group sales), revenue totalled €127.5 million, down 15.2%.

The Seating division (38% of Group sales) posted sales of €1,401.9 million in the quarter, down 23.9% on a reported basis, and including a slight negative currency effect of €0.3 million. At constant currencies, sales in the segment declined 23.9%, broadly in line with worldwide automotive production (-23.6%, source: IHS Markit dated April 2020), according to Faurecia.

Faurecia said it is preparing for a safe restart of production through the “Safer Together” programme, based on recommendations from expert organisations, governments and Faurecia’s experience in China. It includes a comprehensive set of procedures and behaviours to be strictly followed at all plants and facilities.

In light of the health crisis, Michel de Rosen, Chairman of the Board of Directors, and Patrick Koller, CEO, have decided to reduce their salary by 20% for at least the second quarter of 2020. In the same spirit of solidarity, the Executive Committee is said to have unanimously joined this initiative.