PARIS, July 26 (Reuters) - French car parts company Faurecia
raised its 2021 net cash flow target on Monday as it
posted higher first-half sales and profits, led by growth in all
its main areas.
Faurecia's interim sales rose 27.9% from a year ago to 7.78
billion euros ($9.2 billion), while first-half operating income
rose to 510 million euros, up from a loss of 100 million euros
Faurecia said it was upgrading its 2021 net cash flow
target, and was now forecasting a net cash flow of more than 500
million euros - up from a previous target of around 500 million.
It also confirmed its 2021 full-year sales target, namely of
reaching sales of at least 16.5 billion euros and for an
operating margin of around 7% of sales.
Faurecia's upbeat outlook echoed that of its French rival
Valeo, which last week also confirmed its 2021 targets
as it posted higher first-half sales and profits.
Similarly to Valeo, Faurecia also expected global automotive
production to rebound in coming quarters, despite issues over
the supplies of semiconductor chips, which are vital for
technologically advanced cars.
"We are convinced that automotive production has hit a low
in Q2 and should gradually rebound in the coming quarters,
despite a shortage of semiconductors likely to last until the
end of H1 2022," said Faurecia chief executive Patrick Koller.
"In this context, we will pay strict attention to cost
flexibilization and cash generation, thus allowing deleveraging
and profitable growth," he added.
($1 = 0.8492 euros)
(Reporting by Blandine Henault and Kate Entringer;
Editing by Sudip Kar-Gupta)