Auto parts group Faurecia downgrades 2021 targets due to semiconductor shortage
PARIS (Reuters) – French parts company Faurecia lowered its key financial targets for 2021 on Thursday, saying it was adjusting them due to new forecasts for the global auto market released last week by news provider IHS Markit .
Faurecia noted that IHS Markit now estimated global auto production at 72 million vehicles this year from 76.8 million previously, adding that the sharp reduction was mainly due to a higher than expected impact of semiconductor shortages.
“Faurecia’s financial forecast for 2021 was explicitly based on the assumption of 76.6 million vehicles produced in a full year,” the company said.
Based on this new assumption of global automobile production of 72 million, Faurecia now achieves annual sales of 15.5 billion euros ($ 18.2 billion) against a previous target of 16.5 billion. billion.
The group, which won a tender to take control of German lighting group Hella last month, says its 2021 operating margin will be between 6.0% and 6.2% against a previous forecast by 7%.
Faurecia’s net cash target, which the group had raised at the end of July, was also lowered to around 500 million euros against a previous target of a total greater than this figure.
“The revised forecast for 2021, adjusted to reflect the sharp reduction in global automotive production to 72 million vehicles in fiscal 2021, confirms Faurecia’s strong operating leverage and the effectiveness of resilience actions,” said Faurecia.
($ 1 = â¬ 0.8537)
(Reporting by Benoit Van Overstraeten; Editing by Sudip Kar-Gupta)