Auto parts group Faurecia lowers financial forecast for 2021, Auto News, ET Auto
The French automotive supplier Faurecia has revised its forecasts for 2021 downwards, citing a drop in European automobile production, difficulties in adapting to the costs generated by stops and departures and one-off costs in the United States.
The company is now forecasting 2021 sales of between 15 and 15.5 billion euros (16.92 to 17.49 billion euros) and an operating profit margin of 5.5%, compared to a target previous sales to 15.5 billion euros and a margin of 6 to 6.2%.
The drop also had a strong impact on its net cash flow target, which Faurecia now expects to be “over 300 million euros”, down from a previously communicated target of 500 million euros.
The announcement came after the French group agreed earlier this year to acquire a majority stake in German automotive lighting group Hella in a € 6.7 billion deal.
The Hella acquisition is expected to be finalized by the end of February, when Faurecia plans to publish its 2022 financial outlook, the company added.
The 2021 reduction was made after the research institute IHS Markit, on which Faurecia bases its own sales forecast, said in November that global demand for cars in the second half of 2021 would decline 13% to 6.8 million. vehicles produced against 7.8 million.
Faurecia added that its new directions were based on the assumption that no major new foreclosures, impacting production or retail sales in any region of the world, would be put in place.