Wednesday, 27 July 2011

Faurecia hikes full-year targets after strong first half




French car parts maker Faurecia on Tuesday hiked its full-year sales and profitability targets and said it was ahead on its 2010-2014 business plan after a strong performance in the first half.
The maker of car seats and emissions control systems said it saw full-year sales of 15.7-15.9 billion euros and an operating income of 620-650 million euros, compared with previous targets of 14.8-15.3 billion euros and 580-640 billion euros.
"Growth should remain steady in the second half of the year in all regions and is expected to remain solid in the medium-term," Faurecia said in a statement, citing a high level of new contracts.
First half total sales rose 19.4 percent to 8.15 billion euros, with product sales up 18.3 percent at 6.33 billion euros.
Product sales exclude the sales of expensive materials that are used inside catalytic converters which are bought from suppliers and sold on to customers.
Faurecia said in slides that it expected product sales of 12.2-12.4 billion euros this year, versus a previous 11.6-12.1 billion euro estimate, while it should win 13-14 billion euros worth of new contracts this year.

First half operating income rose 57 percent to 340 million euros, leaving an operating margin of 4.2 percent, thanks to "rapid growth in sales volume and a further reduction in fixed costs in Europe," Faurecia said in a statement.
A large number of new plants and programs in North and South America and Asia increased fixed costs outside Europe, the company said.
A "significant" rise in steel and plastics prices translated to a 29 million euro impact on operating income, it added.

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