First-Quarter 2024 Sales
SALES ORGANIC GROWTH OF +3.1%, REFLECTING OUTPERFORMANCE IN ALL BUSINESS GROUPS, NOTABLY CLEAN MOBILITY AND INTERIORS
- By region, Group’s outperformance was driven by North America.
- Excluding negative geographical mix of 140bps, outperformance stood at 530bps.
BUILDING FURTHER MOMENTUM ON SALES AND SUSTAINABILITY
- Robust and selective order intake of €6.5 billion in Q1 2024 vs. €5.5 billion in Q1 2023, mostly driven by Asia.
- New strategic joint venture with Chery in China in the field of smart and sustainable cockpit with the ambition to reach €1 billion in 2029.
- New developments for MATERI’ACT with the signing of two key partnerships in the US and China to promote recycled compounds and new materials.
FOCUS ON DELEVERAGING AND DEBT MANAGEMENT
- Circa 25% of the second €1 billion disposal program already achieved through the closing of the sale by FORVIA HELLA of its 50% stake in BHTC and the agreement to sell Hug Engineering for an enterprise value of c. €55m.
- Issuance of €1.2bn of new debt instruments to replace significant part of 2024 and 2025 maturities by 2029 and 2031 maturities.
FY 2024 GUIDANCE CONFIRMED, ON TRACK TO REACH POWER 2025 AMBITION
The first quarter demonstrated our capability to grow organically in a market that dropped by 0.8% during the period and characterized by the temporary slowdown in electrification in Europe. This contributed to a solid outperformance of 530bps, excluding the unfavorable geographical mix.
During the period, FORVIA recorded an order intake of €6.5 billion, an increase of c. €1 billion versus Q1 2023. It was largely driven by key awards in Asia, where the Group also signed a new major strategic partnership with Chery, a key Chinese technology-driven partner in the field of smart and sustainable cockpit designed for safe, sustainable, and customized end-user experiences.
Since the start of the year, we also made significant progresses in the execution of our second one-billion-euro disposal program with the closing of a first transaction and the signing of second one, which combined represent circa 25% of the targeted amount of cash proceeds. It highlights our unwavering commitment towards the accelerated deleveraging of the Group, our clear top priority.
From a financial point of view, leveraging on the trust on FORVIA’s signature, we were able to issue new long-term debts that allowed us to repay short-term debts and extend our maturity profile.
Reflecting our strong focus on sustainability, which is core to our strategy and innovation, MATERI’ACT, our company dedicated to sustainable materials, signed two significant partnerships in the US and China.
Lastly, the Group has started to deploy its five-year EU-FORWARD project, which aims at fully restoring competitiveness in Europe.
FORVIA is fully mobilized towards the execution of its POWER25 plan and confirms its 2024 guidance.