Faurecia consolidated sales stood at €4,116.9 million in the third quarter of 2013, up 5.2% at constant exchange rates and on a comparable basis. Reported sales were up 0.8%. Over the quarter, exchange rate variations weighed 4% on the business activity.
Per type of sales the breakdown is as follows:
Product sales (parts and components delivered to automakers) totaled €3,129.9 million during the third quarter of 2013, up 1.9% (like-for-like) and down 2.7% on a reported basis;
Monolith sales1 were up 10.8% at €673.7 million;
Development, tooling and prototype sales grew by 20.2% in the third quarter of 2013 to €313.3 million, as a result of the continued high development activities on new contracts.
SALES PER REGION
In Europe, product sales declined 1.4% to €1,651.1 million, against €1,675.2 million during the third quarter of 2012. Like-for-like, the decrease stood at 1.0%. European light vehicle production has stabilized at a very low level and is expected to grow slightly during the fourth quarter then continue to grow at a very low pace in 2014, given the modest economic growth expected in Europe.
In North America, product sales reached €834.8 million, down 13.4%. Like-for-like, the fall was 5.3% over the period. The decrease is mainly due to an unfavorable sales mix and to additional customer plant shutdowns to prepare for new vehicle launches. After a period of very strong growth since 2009, the Group’s sales should continue to grow at more moderate pace, which will allow Faurecia to consolidate its operational performance and recent acquisitions.
In Asia, Faurecia continues demonstrating strong growth with product sales rising 21.4% to €422.9 million, mainly led by a 23.2% growth in China, which represents over 80% of the business in the region. Like-forlike, the increase is 24.9% in Asia and 25.6% in China, where Faurecia outperformed the market and continued to gain market share. Our model of profitable growth is thus confirmed in China and Korea.
In South America, product sales were up 4.4% to €190.3 million. Like-for-like, the growth stood at 26.9%. This strong growth is expected to continue due to the ramp-up of new industrial sites. However, the Group remains concerned by the high inflation, the exchange rate deterioration and the slowdown in economic growth expected both in Brazil and in Argentina.
In the rest of the world, product sales decreased 34.6% to €30.7 million. Like-for-like, the drop was 15.4%.
PRODUCT SALES BY BUSINESS GROUP
Automotive Seating
Product sales reached €1,094.8 million, down 7.0%. Like-for-like, the decline was 3.5%, due to the unfavorable customer mix in North America.
Interior Systems
Product sales reached €856.1 million, down 3.8%. Like-for-like, the increase was 3.6%, with a negative perimeter effect of €24.5 million, due to the transfer of cockpit assembly from the Faurecia Louisville (Kentucky, USA) site to SAS, a non-consolidated joint-venture of Faurecia and Continental.
Emissions Control Technologies
Product sales reached €806.2 million, up 4.9%. Like-for-like, growth stood at 10.4%, driven mainly by Asia (+25%), North America and the commercial vehicles business (+28.4%).
Automotive Exteriors
Product sales reached €372.8 million, down 2.3%. Like-for-like, the decrease was 2.7%.
OUTLOOK FOR 2013
Faurecia confirms its targets for 2013:
An increase in sales to reach between €17.8 and 18.0 billion;
Operating income improvement, particularly due to an accelerated recovery in North America, a €50 million reduction in fixed costs in Europe and sustained high profitability in Asia;
For the year, positive net cash flow before restructuring (estimated at €120 million).
