Faurecia hikes 2nd-half operating profit 34% to EUR282 mil

Article by Anita Panait, on February 14, 2014

Faurecia posted a 34-percent surge in operating profit in the second half of 2013 to EUR282 million ($384 million) from EUR211 million in the same period in 2012, thanks to its gains in Asia and a recovery  in Europe. The supplier also logged a 2-percent rise in revenues to EUR8.76 billion. Faurecia has been expanding in Asia and North America to cut its dependence on Europe.

In November, Faurecia said its operating profit would account for 4.5 percent to 5 percent of sales by 2016, depending on European production levels. For full-year 2013, Faurecia’s margin was 3 percent, with growth being targeted this year. With cash flow beating its own forecasts and debt shrinking, Faurecia has "significantly strengthened its financial position," chief executive Yann Delabriere said in the statement.

"The main positive surprise comes on the cash front, with net debt reduction higher than what consensus had forecast," said Thomas Besson, an analyst at Kepler Cheuvreux.

Faurecia's spending-cut measures were aimed at attaining EUR50 million in trimmed costs in 2013 and EUR100 million in 2014. Charges related to the reorganization reached EUR91 million last year, Faurecia disclosed.

Its net cash flow was EUR144 million in 2013, compared to a negative EUR559 million in 2012. Faurecia’s net debt as of Dec. 31 was EUR1.52 billion, reflecting a 16-percent decline. Faurecia saw its revenues from product sales in the second half surge 26 percent in Asia, 22 percent in South America and 4 percent in Europe. Its Asian operations posted the largest second-half operating margin at 9 percent of total sales.

Topics: faurecia, profit

If you liked the article, share on:

Pin It

Comments

Recommended

Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Sorry to say this to the Sport Quattro Concept fanatics. If you guys have been hoping for the production of this iconic concept to begin, prepare for your dreams to...
by - March 27, 2017
South Korean car company SsangYong recently revealed sketches of their upcoming SUV. We’re not always impressed by Korean car designs, but this one looks quite promising. Yup, it is the...
by - March 26, 2017
Twenty-eight years after the company was first launched by Toyota, which was initially targeted to the United States market only, Lexus has already made its way to over 70 countries....
by - March 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries