Faurecia SA has predicted that vehicle production in its key European market is likely to fall by 2.6% this year after a 2.2% drop in 2003, preventing any increase in the French car parts company’s revenue, according to Reuters.
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Company chairman Pierre Levi also reportedly said that Faurecia will continue the gradual improvement of its operating margin with the objective of reaching the level of 5% that the company considers a proper return on equity.
Reuters noted that Faurecia returned to profitability in 2003 and managed to improve its operating margin to 3.0% of sales from 2.6% in 2002.
The company reported a 2003 net profit of €10.1 million compared with a loss of €59.1 million a year earlier, thanks to reduced restructuring costs, lower debt-servicing and efforts to reduce start-up costs, as revenue rose 2.6% to €10.12 billion, the news agency report added.
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