Faurecia has recorded first-quarter reported sales down 13.5% to EUR3.74bn in the light of the coronavirus crisis.
“Our sales in the first quarter were strongly impacted by the global Covid-19 pandemic,” said Faurecia CEO, Patrick Koller. “This crisis impacted China throughout the quarter, with a peak in February, and then the rest of the world from March.
“While China has effectively and safely restarted, we expect the second quarter to be tougher in Europe and North America. The second half of the year should show sequential improvement.
“To face this unprecedented crisis, we have immediately put in place all the necessary action plans to get through this period. Our top priority is the protection of our employees and preparing for a safe restart of our activity. At the same time, we have secured additional liquidity and implemented measures to aggressively cut costs and protect cash.”
Koller and Faurecia chairman, Michel de Rosen, as well as the executive committee, will reduce their salaries by 20% for “at least” the second quarter of 2020.
Faurecia’s board has also decided, given the lack of visibility due to the Covid-19 pandemic, to postpone the Annual Shareholders’ Meeting, initially planned for 29 May to 26 June. Details will be communicated in due course to shareholders.
Faurecia noted it remains difficult to estimate production levels in coming months as they depend on many external parameters. Thse include government regulations and the pace of resolution of the pandemic in the various geographies, but also on customers’ effective restart of production, as well as consumer demand.
In the context, Faurecia considers it is not currently in position to present new financial objectives for 2020 and will do so when the situation is stabilised and offers more visibility to the Group.