Faurecia has announced first half financial results which show improvement on last year in line with the company’s recovery plan. The results sent its share price up.
Go deeper with GlobalData
Net income during the first half of 2008 was in the red with a loss of 22.2m euros, compared with a net loss of 47.4m euros for the first half of 2007.
First half 2008 operating income totalled 90.3m euros, 27.5m euros higher than the 2007 figure.
Faurecia said the improvement is attributable to the upturn in the operating income in North America. During the first half of 2008, it reached 10m euros, compared with a loss of 54.3m euros during the first half of 2007.
Faurecia said the turnaround is due to a rise in volumes and a reduction in production costs, improved industrial efficiency, and procurement performance.
Sales for the first half of 2008 break down geographically as follows:
- in Europe, sales on a like-for-like basis excluding monoliths fell by 1.1%. The increase in new models released in 2007 (Audi A4, Peugeot 308, etc.) has been offset by the decrease in other vehicles reaching their end of life;
- in North America business remained buoyant in a difficult market environment. Sales rose by 19.6% like-for-like excluding monoliths after the reprocessing of a strong negative exchange rate effect of 14.9%. This growth is associated with new vehicle releases including the BMW X6, the ramp-up of programs launched in 2007 at General Motors (Cadillac CTS, Chevrolet Malibu), and good sales with Ford and Volkswagen, which helped offset the decline of sales to Chrysler;
- in South America, sales during the first half of 2008 grew by 23.9% like for like excluding monoliths (positive exchange rate impact of 3.1%).
