Faurecia’s sales remain flat in first quarter

Worldwide
Published:  24 April, 2019

The French automotive seating and parts manufacturer has posted reported sales up 0.2%, down 1.1% at constant currencies, for the first quarter of 2019.

Faurecia’s sales amounted to €4,324.6 million in the first quarter of 2019, up 0.2% on a reported basis. The French manufacturer says that currencies had a positive impact of €56 million, representing 1.3% of last year’s sales - positive impact from the U.S. dollar and the Chinese yuan renminbi versus the euro partly offset by negative impact from the Turkish lira, the Argentine peso and the Brazilian real versus the euro. At constant currencies, sales were down 1.1%, representing an outperformance of 580bps compared to worldwide automotive production that dropped year-on-year by 6.9% (as per IHS Markit dated April 16, 2019).

Sales in Europe, which account for 51% of Group sales, totalled €2,216.5 million (-2.7% on a reported basis) in the quarter, down from €2,278.9 million a year earlier. North American sales, representing 26% of Group sales, amounted to €1,116.7 million (+5.1%) in the quarter versus €1,062.8 million in the same quarter of 2018, while sales in Asia (18% of Group sales) totalled €797.8 million (+7.5%). South America (4% of Group sales) recorded sales of €150.2 million in the quarter, down 10.8% compared with €168.3 million in Q1 2018.

Seating

Seating, which accounts for 43% of Group sales, recorded total sales of €1,841.5 million (+1.3%) in the period against €1,817.3 million in Q1 2018. According to Faurecia, growth at constant currencies (+0.1%) included a bolt-on contribution of €58.5 million from its joint venture with BYD in Asia (consolidated as from Q3 2018). Conversely, the Group says it was “penalised” by the negative effect of the end of production of two Seating programmes in North America (Cottondale) and Europe (Vigo), representing a combined year-on-year negative impact of €94.9 million. The Volkswagen Chattanooga Seating business in the U.S., which was transferred to Faurecia at the beginning of the year and represents €1.3 billion of lifetime sales, is not included in these consolidated sales figures, as it is accounted for by the equity method; sales for this business amounted to €46 million in the first quarter of 2019, according to Faurecia.

The France headquartered Group confirms its full-year 2019 guidance based on the assumption that worldwide automotive production should be down 1% in 2019 compared with 2018, “with a difficult first half and growth resuming in the second half”.

In early March, the Group’s new R&D and test centre aimed at improving Faurecia China's R&D and manufacturing abilities in automotive seating, started operations, with a total investment estimated at CNY95 million (US$14.12 million). Read more here. On April 14, Faurecia received the Auto Innovator Award from Sohu Auto, an online Chinese automotive news platform, during the Shanghai Auto Show for its Cockpit of the Future experience.