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Faurecia records H1 net profit up 10% to EUR342m

By Simon Warburton | 20 July 2018

Faurecia has posted first-half net income up 10% to EUR342m (US$399m), while sales also grew by double digits in the second quarter and first six months.

"We delivered again a very robust performance in the first half of the year, ahead of our roadmap," said Faurecia CEO, Patrick Koller. "Our sales grew by double-digits, both in the second quarter and in the first half and our profitability continued to improve with an operating margin up 40 basis points, at 7.2%.

"Taking into account this strong performance, we upgrade our guidance for the year and fully confirm our 2020 financial targets as presented at our recent Capital Markets Day."

The supplier's first-half results come hot on the heels of its announcement it will take over 100% of Parrot Automotive, which will fit into Faurecia's Cockpit of the Future strategy.

It will accelerate the development of infotainment solutions based on the Android operating system by Parrot Automotive and the development of an open platform integrating the different connected systems and functionalities of the vehicle interior.

It will also facilitate the introduction of user experiences such as for postural and thermal comfort, immersive sound experience and new HMI solutions.

This project is subject to consultation of the Parrot Automotive and Parrot SA Works Councils and to the agreement of the antitrust authorities. It should be closed during Q3 2018 and consolidation of Parrot Automotive into Faurecia's accounts could start in Q4, 2018.

The transaction is based on an enterprise value of EUR100m identical to that used when Faurecia entered into the capital of Parrot Automotive in 2017, while the price to be paid at the closing should amount to EUR67.5m.