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Faurecia announces Q1 result

Auto News - Published on Tue, 24 Apr 2018

Image Source: faurecia.com
French auto parts maker Faurecia posted higher first quarter sales on 20 April, and sees robust, double-digit growth in their second quarter that enables the group to have a positive outlook for 2018. In Q1 2018, sales amounted to EUR 4,315 million, up 9.3% at constant currencies

1. This 9.3% growth significantly outperformed worldwide automotive production, which dropped by 0.3% in the quarter (source: IHS April 2018)
All regions significantly outperformed automotive production growth
All three Business Groups posted solid growth at constant currencies

2. Growth at constant currencies included a contribution of EUR 57 million from the new Chinese JVs signed in 2017, representing 1.4% of last year’s sales (EUR 23 million in Seating and EUR 34 million in Interiors)

3. Currencies had a negative impact of EUR 281 million, representing 6.7% of last year’s sales (mostly attributable to the USD vs. the euro); as a consequence, sales on a reported basis grew by 2.7%

SALES BY REGION

Europe (53% of Group sales)
Sales up 9.1% at constant currencies, 920bps above regional automotive production (-0.1%, source: IHS April 2018)

Sales amounted to EUR 2,279 million in Q1 2018, up 9.1% at constant currencies and up 8.1% on a reported basis (currencies had a limited negative impact of EUR 20 million or -1.0% of last-year’s sales).

Growth in Europe was mainly driven by Seating, which generated almost half of the sales growth at constant currencies in the quarter, supported by strong sales to PSA for the successful 3008 and 5008 SUVs. Interiors (mainly sales to JLR, Volvo and PSA) and Clean Mobility (mainly sales to PSA, commercial vehicles and Tata) also contributed to sales growth in the quarter.

North America (25% of Group sales)
Sales up 4.2% at constant currencies, 690bps above regional automotive production (-2.7%, source: IHS April 2018)

Sales amounted to EUR 1,063 million in Q1 2018, up 4.2% at constant currencies and down 9.7% on a reported basis (currencies had a strong negative impact of EUR 164 million or -14.0% of last-year’s sales, mostly due to the USD vs. the euro).

Growth in North America was driven by Interiors (+19.0% at constant currencies) and Clean Mobility (+9.3% at constant currencies), while Seating dropped (-9.0% at constant currencies), reflecting market decline combined with the expected ramp-down of production for two models.

Asia (17% of Group sales)
Sales up 15.2% at constant currencies, 1,570bps above regional automotive production (-0.5%, source: IHS April 2018)

Sales amounted to EUR 742 million in Q1 2018, up 15.2% at constant currencies and up 7.8% on a reported basis (currencies had a significant negative impact of EUR 51 million or -7.4% of last-year’s sales, mostly due to the CNY vs. the euro).

Growth in Asia at constant currencies included a contribution of EUR 57 million from the new JVs signed in 2017, representing 8.3% of last year’s sales in Asia.

It was mostly driven by Seating and Interiors and sales in China, where sales amounted to EUR 565 million (76% of total sales in Asia and 13% of total Group sales). They were up 12.0% at constant currencies, 1,340bps above Chinese automotive production (-1.4%, source: IHS April 2018). They included the above-mentioned contribution of EUR 57 million from the new JVs signed in 2017, representing 10.6% of last year’s sales in China. Sales to Chinese OEMs amounted to EUR 153 million (up 89% at constant currencies) and represented 27% of sales in the country (vs. 16% in Q1 2017).

South America (4% of Group sales)
Sales up 23.3% at constant currencies, 1,150bps above regional automotive production (+11.8%, source: IHS April 2018)

Sales amounted to EUR 168 million in Q1 2018, up 23.3% at constant currencies and broadly stable (-0.5%) on a reported basis (currencies had a significant negative impact of EUR 40 million or -23.8% of last-year’s sales, due to the Brazilian Real and the Argentine Peso vs. the euro).

Growth in South America was driven by the three Business Groups, reflecting continuous market recovery and strong momentum in sales to major OEMs, mainly FCA, Ford, VW and Toyota.

Source :

Posted By : Rabi Wangkhem on Tue, 24 Apr 2018
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