Faurecia has reported an improvement in its full year results buoyed by the effects of a restructuring programme and strong sales outside Europe.
The French components company said today that sales in 2007 rose 7.4% year on year to EUR12,660.7m.
Growth was particularly strong in the exhaust systems and front end activities, at 14% and 18.9% respectively. Growth in seating was up 8.2% and interiors rose 1.6%.
The improved sales led to an operating income of EUR121.1m, a clear improvement over 2006’s EUR69.2m. The company said that net loss was EUR237.5m, compared to a loss of EUR447.9m in 2006.
Faurecia said it had continued to develop business outside Europe in 2007. North America saw a 42% increase in sales, driven by increased market share among US automakers and European manufacturers.
Growth in Asia stood at 23.8%, buoyed by the rapidly growing Chinese market and the release of new products with Hyundai in South Korea. Meanwhile, business in South America grew by 16.8%.
In Europe, group sales rose 1.2%, in line with the growth of the automobile market.
The company, which is majority-owned by PSA Peugeot Citroen, said its recovery had been particularly pronounced in the second half of the year, with operating income at EUR58.3m, compared with a loss of EUR15.9m in the second half of 2006.
“This growth was largely due to the turnaround in North American operations – which suffered significant losses in the second half of 2006 and in the first half of 2007,” the company said.
“In Europe, the improvement in industrial efficiency coupled with the effects of restructuring helped offset the negative impact of prices and material costs.”
Looking forward, Faurecia said that it was targeting an operating income of at least 3% of consolidated sales.
“The automotive market environment will be difficult in 2008, with a stable situation in Europe and reduced volumes in North America. Despite this unfavourable context, however, Faurecia is aiming to substantially improve its operating income and reduce its debt thanks to the implementation of its recovery plan,” a statement said.
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