Faurecia grows profit in tough H1 2019

Nanterre, France — Faurecia, which supplies automotive seating and interiors, had total sales of EUR 8.97bn in the first half of 2019. This is almost unchanged on the 2018 numbers.

Operating income across the business rose 10.4% and reached EUR 1.17bn in the first half year.

'The first half of the year was tougher than expected, due to significantly lower production, volumes in China,' said Patrick Koller, CEO.

The company's Seating business sales fell 3.8% between 2018 and 2019. They reached EUR 3.64bn in the first half of 2019. This compares with EUR 3.78 bn in the first half of 2018.

At the same time, operating income in the division fell 1.4%. It hit EUR 219m in the first half of 2019. This compares with EUR 222m in the 2018 period.

The end of two production programmes in North America, and Europe hit the numbers. Compared with the first half of 2018 this hit the numbers by EUR 218m.

Operating income proved resilient. Operating margin at 6.0% of sales, up 0.1% first half of 2018. Improved performance in South America drove this change.

The company's Interiors business sales fell 1.8% between 2018 and 2019. They reached EUR 2.75bn in first half of 2019. This compares with EUR 2.8bn in 2018.

At the same time, operating income in the division rose 1.8%. It reached EUR 171m in the first half of 2019. This compares with EUR 168m in the same period last year.

The company confirmed that it expects its sales to be between 1.5% and 3.5% higher than global automotive production. It added that operating income should be increase by value and the margin should be around 7%.

'We are currently focused on executing a significant cost reduction plan,' said Koller.