According to foreign media reports, Forvia lowered its sales and profit margin forecasts this year due to weak global car demand and one-time additional costs for its North American car interior business.
Photo source: Faurecia China Official Account, Faurecia expects that the company’s sales this year will be at the bottom of the expected range of 27.
5 billion euros to 28.
5 billion euros (approximately US$29.
8 billion to US$30.
9 billion).
Similarly, its operating profit margin will be at the bottom of the expected range of 5.
6% to 6.4%. Foria said in its first-half earnings report released on July 24 that the above performance outlook is based on an estimated global automobile production this year of 88.
7 million units, which will be 2% lower than last year.
Foria said that in the first half of this year, global automobile production was basically flat year-on-year, but the pace of electrification in Europe slowed down.
At the same time, the company added that due to internal problems with suppliers, its first-half operating profit margin was affected by one-time additional costs for the North American interior division.
, Foria pointed out that compared with last year, sales in the first half of this year fell slightly by 0.
6% year-on-year to 13.
534 billion euros.
operating profit increased from 675 million euros in the first half of last year to 700 million euros, a year-on-year increase of 3.8%. Operating profit margin increased 0.
2 percentage points to 5.2%. solid net cash flow was 201 million euros, a year-on-year increase of 16.3%. Other large parts suppliers, including Valeo and Aptiv, also lowered their performance forecasts as market demand fell short of expectations.
Freia supplies parts and components to Stellantis Group, Volkswagen and Ford Motor, and is also actively conducting business in China.
As the auto industry is facing declining demand for cars and Foria faces competition from Chinese manufacturers, the company is currently struggling to restore profit margins.
In 2023, Foria’s sales to global automakers will be US$28.
3 billion, ranking ninth in the European Automotive News Top 100 Global Auto Parts Suppliers list.
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