Faurecia posted a 21-percent surge in operating profit in the first half of 2014 to EUR311 million ($418 million) despite only a 0.7-percent rise in revenues to EUR9.33 billion. In effect the French supplier hiked its full-year profit forecast for 2014, expecting strong demand in Asia and higher market share in Europe.
It also expects its full-year operating margin to increase by 30 basis points to 60 basis points, a hike from initial target of 20 basis points to 50 basis points.
The supplier logged a 3.3-percent sales margin in the first half of 2014. Faurecia is currently pushing an expansion in Asia and North America to cut its dependence on Europe, where auto demand is still recovering, albeit gradually.
In November 2013, Faurecia outlined a target for an operating profit margin of 4.5 percent to 5 percent by 2016, relying on the rate of auto output in Europe.
Chief executive Yann Delabriere remarked in a company statement that Faurecia’s solid sales growth in the first half of 2014 was particularly by a 20-percent growth in Asia, as well as gains in Europe that outpaced the surge in auto production.
Faurecia reiterated its goal of increasing its full-year sales by 2 percent to 4 percent at constant exchange rates.