Q1-2017: STRONG SALES GROWTH AT +10.0%, (+9.8% ORGANIC*) 2017 GUIDANCE FULLY CONFIRMED

Nanterre, France, Apr 11, 2017,  by Faurecia

"In Q1-2017, Faurecia achieved a solid performance with sales growth at 9.8%. All three Business Groups performed well and contributed to the strong growth."

Q1-2017: strong growth

·              Value-added sales at € 4.23 billion up 10.0% (+9.8% organic*) above worldwide automotive production growth (+4.9%)

·              Very good first quarter in China and Americas

·              All 3 Business Groups posted solid value-added sales growth and gained market share especially Seating and Interiors with a double digit growth

·              Clean Mobility CVE sales rose 28% driven by sales to Cummins 

·              Sales to Chinese carmakers up by an outstanding 89% and represented 17.5% of Chinese sales.

Patrick Koller, CEO of Faurecia commented: "In Q1-2017, Faurecia achieved a solid performance with sales growth at 9.8%. All three Business Groups performed well and contributed to the strong growth. Value-added sales organically grew 12.9% in North America and 22.5% in China. We expect the positive momentum to continue at least in Q2 2017.”

 

Q1-2017

Faurecia’s value-added sales for the first quarter of 2017 climbed 10.0% to € 4.226 billion (€ 3.840 billion in 2016). Changes in exchange rates had a positive impact of € 66 million (+1.7%) whilst change in scope, mainly the divestment of the Fountain Inn plant, had a negative impact of € 58 million (-1.5%). This represented an organic* growth of 9.8% of which 1.7% came from consolidation of two  joint ventures  (JV with Chang’An and JV with FCA).


As announced on February 11, 2017, Faurecia is now communicating on its value-added sales. At the end of the press release, there is a table allowing reconciliation between total sales and value-added sales.

 

SALES BY REGION: VERY GOOD FIRST QUARTER IN CHINA AND IN AMERICAS

 

Value-added sales
In € million

Q1-2016

Q1-2017

Variation Reported
(%)

Organic* growth
(%)

Europe

2,030

2,102

+3.5%

+4.1%

North America

1,084

1,206

+11.3%

+12.9%

South America

97

168

+73.3%

+44.7%

Asia

587

688

+17.3%

+17.3%

Rest of the World

43

62

+45.3%

+23.4%

TOTAL GROUP

3,840

4,226

+10.0%

+9.8%

 

 

Value-added sales in Q1-2017 broke down as follows:

 

·              In Europe, value-added sales rose by 3.5% to € 2.102 billion (€ 2.030 billion in 2016), posting an organic* growth of 4.1%, while automotive production grew 6.6%. Production disruption for two OEMs due to a fire in a supplier plant reduced Faurecia’s sales by around € 50 million (250bp) which will be recovered by year end.

 

·              In North America, value-added sales rose by 11.3% to € 1.206 billion (€ 1.084 billion in 2016). The variation in exchange rate parity had a positive impact of € 41 million (+3.7%). Scope had a negative impact of € 58 million (-5.3%). This represented an organic* sales growth of 12.9%, against a 1.6% increase in automotive production.

 

·              In Asia, value-added sales rose by 17.3% to € 688 million (€ 587 million in 2016). Currency exchange rates had a marginal negative impact of € 0.1 million. The consolidation of a JV with Chang’An in China had a positive impact of € 38 million (+6.4%).  Organic* growth was 17.3% of which 22.5% was in China compared to light vehicle production in Asia growing 4.4% (+5.6% in China). Faurecia posted € 534 million value-added sales in China +20.4% (vs 2016) or +22.5% organic*. Sales to local Chinese carmakers grew by an outstanding 89% and represented 17.5% of the Chinese sales.

 

·              In South America, value-added sales rose by 73.3% to € 168 million (€ 97 million in 2016). The consolidation of the JV with FCA (production for Pernambuco plant) boosted sales by € 28 million. Currency fluctuation represented an increase of € 28 million (+28.6%); organic* growth was 44.7%.

 

 

VALUE-ADDED SALES BY BUSINESS GROUP: STRONG GROWTH FOR SEATING AND INTERIORS

 

Value-added sales
In € million

Q1-2016

Q1-2017

Variation Reported
(%)

Organic Growth
(%)

Seating

1,582

1,789

+13.5%

+11.5%

Interiors

1,219

1,315

+7.8%

+11.4%

Clean Mobility

1,038

1,122

+8.1%

+5.5%

TOTAL

3,840

4,226

+10.0%

+9.8%

 

 

Value-added sales in Q1-2017 broke down as follows:

 

  • Sales for Seating grew by 13.1% (+11.5% organic*) to € 1.789 billion (€ 1.582 billion in 2016), spurred by the full year impact of new programs for Ford and BMW.

 

  • Sales for Interiors stood at € 1.315 billion (€ 1.220 billion in 2016) up by 7.8%, representing an organic* growth of 11.4%. Scope had an overall negative impact of € 58 million (-4.7%) while the consolidation of two JVs had a positive impact on sales of € 65 million or +5.4%.

 

  • Sales for Clean Mobility increased by 8.1% (+5.5% organic*) to € 1.122 billion (€ 1.038 billion in 2016). Sales to Cummins (+36%) were an important growth driver. Commercial Vehicles (CVE) sales rose 28% to € 133 million and now represent 12% of Clean Mobility’s sales.

 

 

Annual General Shareholder’s meeting
 

The Board of Directors of Faurecia met in Caligny (France) on April 11, 2017 and approved the agenda of the Group’s annual shareholder’s meeting to be held on Wednesday May 30, 2017 at 10:00 am (Paris time) at Pavillon Gabriel (Paris) including the proposed payment in cash of a 90 euro cents dividend per share.

 

 

2017 GUIDANCE IS FULLY CONFIRMED

 

  • Q1 sales were slightly above Group expectations.

 

  • The positive momentum will continue in Q2 2017.

 

  • Therefore the Group fully confirms its 2017 guidance:

 

  • Value-added sales: +6% (at constant currencies) or +400bp above worldwide automotive production growth.

 

  • Operating margin: between 6.4% and 6.8% (of value-added sales).

 

  • Net cash flow: > € 350 million

 

  • Earnings per share: Around € 4

 

 

 

NEXT EVENTS:
 

  • 2017 Investor Day with focus on “Sustainable Mobility”: Tuesday June 27, 2017 in London


“Sustainable Mobility” is one of the two pillars of Faurecia’s strategy combining very attractive growth and profitability prospects;
 

  • AGM: Tuesday May 30, 2017 at 10.00am (Paris time);

 

  • H1 2017 results: Friday July 21, 2017 (webcast)

 

 

Faurecia's financial presentation will be available at 5:45 pm today (Paris time) on the Faurecia website: www.faurecia.com. A conference call for financial analysts and media will be held today at 6:15 pm (Paris time). It can also be followed on the Faurecia website (www.faurecia.com)

 

Dial in numbers for the conference call:

·              France: +33 (0) 1 76 77 22 27

·              UK: +44 (0) 20 3427 1912

·              USA: +1 646 254 3367

Access code: 5411171

 

 

Faurecia is one of the world's largest automotive equipment suppliers, with three key Business Groups: Seating, Clean Mobility and Interiors Systems. In 2016, the Group posted total sales of €18.7 billion. At December 31, 2016, Faurecia employed 100 000 people in 34 countries at 300 sites and 30 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange and trades in the U.S. over-the-counter (OTC) market. For more information, visit www.faurecia.com 

1.           Value-added sales:

Total sales less monoliths sales.

Monoliths are components used in catalytic converters for exhaust systems. Monoliths are directly managed by automakers. They are purchased from suppliers designated by them and invoiced to automakers on a pass-through basis. They accordingly generate no industrial value added.

 

2.           Organic growth:

Sales growth at constant exchange rates and scope.

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