2019 half year results

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2019 Half year results

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Resilient sales, profitability and cash generation in a challenging environment. Fully-year guidance confirmed.
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in €m

H1 2018

H1 2019*

Change

Sales

At constant currencies and excluding Clarion

8,991

8,972

-0.2%

-2.8%

Operating income

647

645

-0.4%

as % of sales

7.2%

7.2%

stable

Net cash flow

247

257

+3.9%

Net income, Group share

342

346

+1.0%

*First application of IFRS16 as of January 1, 2019 (impacts detailed in appendix and no pro forma for 2018 accounts).
All definitions are explained at the end of this Press Release.

 

SALES OUTPERFORMANCE OF 420bps AT CONSTANT CURRENCIES (excluding Clarion)

  • All three historical Business Groups outperformed worldwide automotive production (-7.0%, source: IHS Markit forecast dated July 16 - vehicles segment in line with CAAM for China)
  • All regions, except North America (impacted by the end of production of a significant Seating program for Daimler in Cottondale), outperformed local automotive production

 

RESILIENT PROFITABILITY AT 7.2% OF SALES (including Clarion)

  • Improved or stable margin in all three historical Business Groups, thanks to structural initiatives and increased agility
  • Operating margin at 7.3% of sales, excluding Clarion

 

NET CASH FLOW OF €257m AND NET INCOME OF €346m INCLUDED HIGHER RESTRUCTURING TO ADAPT TO MARKET CONDITIONS AND COSTS RELATED TO THE ACQUISITION OF CLARION

 

FULL-YEAR GUIDANCE CONFIRMED

  • Sales growth outperformance at constant currencies between 150 to 350bps (excluding Clarion consolidation)
  • Operating income increase in value and operating margin of at least 7% (including Clarion consolidation as from April 1)
  • Net cash flow at least €500m (including Clarion consolidation as from April 1)

 

Citation

The first half of the year was tougher than expected, mostly due to significantly lower production volumes in China. In this context, we demonstrated again our ability to deliver a very resilient performance.
Since we took control of Clarion, we have put in place a strong organization for Faurecia Clarion Electronics, combining Faurecia and Clarion competencies. We are currently focused on executing a significant cost reduction plan and we will present our strategic plan and profitable growth roadmap for the new Business Group at our Capital Markets Day, on November 26.
Our first-half performance and forecast for the second half allow us to confirm our guidance for the full-year.

 

Auteur
Patrick Koller
Fonction de l'auteur
CEO of Faurecia
Texte

 

•    The 2019 half-year consolidated statements have been approved by the Board of Directors at its meeting held on July 22, 2019, under the chairmanship of Michel de Rosen. These financial statements have been subject to a limited review and the external auditors have issued their report.

•    Application of IFRS16 as from January 1, 2019:
o    Faurecia is using the simplified retrospective method, according to which there will be no pro forma of the previous year
o    All lease contracts are accounted for in the balance sheet with a “Right to use the asset” as an asset and a corresponding debt representing the obligation to pay the future leases
o    The impact of IFRS16 on Faurecia’s main indicators are detailed in appendix

•    Fourth new Business Group “Faurecia Clarion Electronics” reported as from January 1, 2019:
o    This new Business Group mainly regroups the operations of Coagent (consolidated as from January 1, 2018 and previously classified within “Interiors”), Parrot Faurecia Automotive (sales consolidated as from January 1, 2019) and Clarion (consolidated as from April 1, 2019)
o    Due to time constraints related to the first consolidation of Clarion, it was accounted for only two months (April and May) in the half-year consolidated statements. The month of June will be caught up at the financial closing of September 30.

•    All figures related to worldwide or regional automotive production for the half-year refer to IHS Markit forecast dated July 16 - vehicles segment in line with CAAM for China.

•    All definitions are explained at the end of this Press Release, under the section “Definitions of terms used in this document”.

 

You can view the full press release below.

 

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2019.07.23

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