PSA group partsmaker Faurecia has said it was optimistic about the second half after raising its forecasts despite posting a 21% drop in third quarter sales.
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Faurecia said North America and Europe had improved, with sales down less sharply than in previous quarters after governments stepped in to boost car sales with incentive schemes. Asia also showed “strong growth”, it said, according to Reuters.
Faurecia posted third-quarter sales of EUR2.27bn (US$3.39bn) and now expected only a 5% fall in second-half sales in Europe, compared with a previous forecast for a 10% drop, it said.
Sales in North America were expected to drop 25% compared with an earlier expectation of a 35% decline, Faurecia added.
“All in all, Faurecia has today a better feeling about its activity,” the company said in a presentation for analysts.
It confirmed that it expected to see “sustained growth” in Asia, where sales rose 30% in the third quarter, Reuters said. Group sales fell 13% last month.
“Against this backdrop, and as a result of the cost reductions achieved by the Challenge 2009 plan, Faurecia is targeting, for the second half of the fiscal year, positive operating income, together with global cash flow close to break-even,” the supplier said.
The company had said in July that it expected operating income to be close to break-even in the second half, Reuters noted.
