Faurecia upgrades guidance for second half

Worldwide
Published:  26 October, 2020
Credit: Faurecia

The France headquartered automotive seating and components manufacturer said the third quarter results were better than expected.

Faurecia has posted a significant sequential improvement with third quarter sales down 7% at constant scope and currencies, after recording declines of 19.7% and 50% in the first and second quarters, respectively. September saw a 1.2% growth in sales and, in the third quarter, sales in China increased by double digits; 15.4% at constant scope and currencies.

Faurecia said the Seating and Clean Mobility divisions, which represent 65% of Group sales, outperformed the market in the quarter. At constant scope and currencies, Seating sales (39% of Group sales) were down 2.3%, outperforming the market (-4.9%) by 260bps as per the IHS Markit dated October 16, 2020.

The French Group has upgraded its financial targets for the second half of the year and now expects sales of at least €8 billion, up from the €7.6 billion announced on July 27, with operating income of at least 5.5% of sales and a net cash flow of at least €700 million.