Gradual recovery for Faurecia in second half

Worldwide
Published:  23 February, 2021

The French automotive seating and parts manufacturer said that the first half of 2020 was strongly impacted by the global spread of Covid-19, which heavily impacted the automotive industry. In the first quarter of the year, worldwide automotive production fell 22% to 17.2 million vehicles, mostly impacted by China.

Faurecia’s sales in 2020 amounted to €14,654 million, down 17.5% on a reported basis and down 19.6% on an organic basis. Currency negative effect amounted to €373 million. Positive scope effect amounted to €741 million, up 4.2% and reflected a contribution of 11 months from SAS (€574 million) and a contribution of three months from Clarion (€167 million). On an organic basis, sales declined 9.6% as worldwide automotive production decreased 17.2%. Adjusted for the unfavourable geographic mix impact of about 250bps, Faurecia said it outperformed the market by ten basis points; Europe and North America, the regions most impacted by the Covid crisis during the year, represented 74% of last year’s Faurecia sales while they accounted for only 44% of worldwide automotive production.

Full year operating income amounted to €406 million or 2.8% of sales, compared with €1,283 million in 2019, as the net effect of an operating loss in the first half is said to have been strongly impacted by the Covid-19 crisis and plant closures, and a strong recovery in the second half. Net income before minority interests was a loss of €321 million compared with a profit of €665 million in 2019. Minority interests amounted to €57 million compared with €75 million in 2019, and net income (Group share) was a loss of €379 million compared with a profit of €590 million in 2019. EBITDA stood at €1,679 million, down from €2,404 million in 2019, and reflected the drop of €877 million in operating income, mitigated by higher depreciation and amortisation. In the second half of 2020, EBITDA margin represented 13.8% of sales compared with an EBITDA margin of 13.5% in the full-year 2019.