FORVIA (EX-FAURECIA) Q3 sales significantly better than previously expected
- Strong sequential improvement at constant scope and currencies: -7.0% in Q3, after -19.7% in Q1 and -50.0% in Q2
- Month-after-month improvement throughout the quarter, with September up 1.2% year-on-year
- Strong sales in China, up 15.4% at constant scope and currencies
- Outperformance of Seating and Clean Mobility (representing combined 65% of Group sales), while Interiors and Clarion Electronics underperformed the market
H2 guidance upgraded
With the revised assumption that worldwide automotive production in H2 should drop in the mid-single digits vs. H2 2019 (vs. 'down around 15%' as announced on July 27), Faurecia is upgrading its financial targets for the second half of the year:
- Sales of at least €8 billion (vs. 'around €7.6 billion' as announced on July 27)
- Operating income of at least 5.5% of sales (vs. 'around 4.5% of sales' as announced on July 27)
- Net cash flow of at least €700m (vs. 'around €600 million' as announced on July 27)
Our sales in Q3 were better than previously expected. Despite ongoing uncertainty related to the Covid-19, we are now more confident about worldwide automotive production in the second half of the year that should drop only in the mid-single digits vs. the second half of 2019. This improved environment and the confirmed positive effects of our measures to further increase resilience, enhance cash generation and strengthen our financial structure allow us to revise upward our guidance for the second half of the year. We anticipate a strong market rebound in the next two years and confirm that Faurecia is on track to achieve its sales, profitability and cash ambition for 2022.
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Faurecia SA published this content on 23 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 23 October 2020 05:29:01 UTC
