Faurecia’s net income shrank 71% to EUR35m (US$46m) in the first half of this year despite a 5.7% gain in revenue to EUR9.27bn but the supplier predicted that European vehicle production would begin to stabilise later this year, helping it meet its 2013 targets.
The company is 57.4%-owned by troubled carmaker PSA Peugeot Citroen and said that profitability had been “impacted by the continued decline of European automotive production”. However it renewed its projection of raising full-year sales to EUR17.8-18bn from EUR17.4bn in 2012 and increase operating profit.
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Faurecia forecast European vehicle production to fall just 1% in the second half against an estimated 3.7% decline in the first half. The company said that first half revenue fell 2.8% in Europe region but rose 18% in the rest of the world.
