Faurecia has posted third-quarter Group sales down 10.4% to EUR3.4bn (US$3.9bn).
Despite the drop, the French supplier noted all business groups and regions posted significant outperformance, while Clarion Electronics and Asia recorded organic growth of 7.3% and 6.5% respectively.
On 23 September, 2021, Faurecia adjusted its FY 2021 guidance to reflect the strong reset released by IHS Markit of worldwide automotive production forecast, from 77m to 72m units for the full-year, 2021.
Based on this forecast, Faurecia confirms its 2021 financial targets as recently adjusted:
• Sales of around EUR15.5bn and strong organic sales outperformance > +600bps
• Operating margin of 6% to 6.2% of sales
• Net cash flow of around EUR500m and net-debt-to-EBITDA ratio ≤ 1.5x at year-end
Hella acquisition process on track:
• Takeover Offer launched on 27 September to end on 11 November
• Antitrust clearances underway, expected closing early 2022, confirmed
• Faurecia and Hella launched the project ‘One,’ to be ready at closing
“Market conditions remained tough in the past quarter, impacted by adverse supply chain conditions, primarily semiconductors, that impacted automotive production and generated high volatility in OEM programmes,” said Faurecia CEO, Patrick Koller.
“In these challenging conditions, Faurecia nevertheless reached a solid sales outperformance and confirms its capability to achieve a strong operating leverage in 2021.
“On top of tightly managing the short-term performance, we are also focusing on successfully closing the acquisition process of Hella and prepare our companies to combine their strengths and create strong value for all stakeholders.”