Car parts maker Faurecia SA on Wednesday said its net profit rose to €16.2 million in the first half of 2003 from €600,000 a year earlier, boosted by a 5.7% rise in sales, improved productivity and cost control, according to a Dow Jones report.

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The first-half net profit exceeded analysts’ expectations of €11.6 million, according to a survey by Dow Jones Newswires.


Operating profit for the six months came in at €161.3 million, a 25% jump compared with €129.0 million in the year-ago period and broadly in line with market expectations while operating margin increased to 3.1% of sales from 2.6% in the first half of 2002, the report added.


According to Dow Jones, the company attributed its improved profitability in the first half of this year to restructuring measures whose effects are beginning to bite, although it noted that some of its programmes are continuing to experience difficulties.


Earnings were also helped by the implementation of a purchasing plan that limits the impact of rises in raw material prices and of drops in prices, as well as by efforts to reduce programme start-up costs, Dow Jones added.

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The report said Faurecia’s revenue in the six months to June 30 climbed to €5.24 billion from €4.96 billion despite an unfavourable exchange rate effect and a fall in the price of precious metals used in catalytic converters fitted to exhaust systems.


Revenue from Faurecia’s car seats division – the company’s largest business segment – rose by 13% to €2.23 billion, helped by the full effect of a new production unit in Spain, Dow Jones said.


The news agency said Faurecia predicted a 7% decline in European vehicle output in the second half of this year compared to the same 2002 period, but is optimistic that it will continue to outperform the market.