Third-quarter 2022 sales
- Strong year-on-year growth in worldwide automotive production, from a favorable comparable base in Q3 2021
- Outperformance of +140bps or +490bps restated for unfavorable geographic mix of -350bps, leading to organic growth (constant scope and currencies) of +31%
- Scope effect of 54% or €1.8bn from the consolidation of HELLA (as from Feb. 1)
|in €m||Q3 2021*||Q3 2022*||Change|
|Sales, of which:||3,426||6,591||92.4%|
|Hella scope effect||1,835||53.6%|
|Organic growth (constant scope and currencies)||1,058||30.9%|
|Worldwide automotive production** (in m units)||15,836||20,505||29.5%|
* Q3 2021 are Faurecia stand-alone figures as reported in October 2021; Q3 2022 are FORVIA (Faurecia + 3m of consolidation of HELLA) figures
** Source: S&P Global Mobility (ex-IHS Markit) dated October 2022 (vehicles segment in line with CAAM for China)
UPGRADED FULL-YEAR 2022 SALES GUIDANCE TO BETWEEN €24.5bn AND €25.5bn (vs. between €23 billion and €24 billion previously)
Q3 SALES OF €6.6bn, UP 92% ON A REPORTED BASIS AND UP 31% ON AN ORGANIC BASIS
- Sales included a Q3 scope effect of €1.8bn or 54% of last year’s sales, related to the consolidation of HELLA since February 1.
- On an organic basis (Faurecia stand-alone and excl. currency effect), sales were up 31%, outperforming worldwide automotive production by +140bps or +490bps, restated for unfavorable geographic mix of -350bps.
- All regions recorded strong growth and outperformed regional automotive production.
UPGRADED FULL-YEAR 2022 SALES GUIDANCE
- Sales guidance now upgraded to between €24.5 billion and €25.5 billion (vs. between €23bn and €24bn, previously), to reflect currency evolution and revised estimation of worldwide automotive production to 77m LVs (vs. c. 74m LVs previously),
- Operating margin confirmed between 4% and 5% of sales,
- Net cash flow confirmed at breakeven.
ON TRACK FOR DELEVERAGING AND DISPOSAL PROGRAM, AS WELL AS FOR FINALIZING THE REFINANCING OF THE HELLA ACQUISITION
- Since the H1 2022 results announcement (July 25):
- HELLA has announced the divestment of its 33% stake in the HBPO JV to its co-shareholder Plastic Omnium for €290m; the remainder of the Group’s €1bn disposal program by end-2023 is well underway
- Financings for a combined amount of €0.5bn have been signed at attractive conditions in the current environment and the part of the bridge-to-loan still to be refinanced is limited to c. €0.9bn, out of a total acquisition cost of €5.4bn
CAPITAL MARKETS DAY AND SUSTAINABILITY DAY ON NOVEMBER 3 & 4
FORVIA recorded strong sales growth in the third quarter, reflecting market outperformance and the consolidation effect of HELLA, as well as a favorable comparable base in terms of worldwide automotive production.
During the quarter, we outperformed in all our main geographies: in Europe, where semiconductor availability has marginally improved, but also in North America and in China, which has posted a strong recovery after COVID-related lockdowns in key cities.
Given the evolution of global automotive production in the past quarters and the outlook for the end of this year, we are revising upwards our cautious outlook for global auto production for the full year to 77 million light vehicles, from 74 million previously. With this new assumption, and also taking into account the evolution of currencies, we are also revising upwards our expected consolidated sales for the year to between 24.5 billion euros and 25.5 billion euros, against a previous expectation of between 23 billion euros and 24 billion euros.
In a macroeconomic environment that remains challenging, we are laser-focused on three major objectives:
Finalize the refinancing of the HELLA acquisition and deleverage the Group,
Protect our short-term operating margin and our cash generation in a highly inflationary environment,
Continue to build a strong and selective order book, thanks to the unique combination of Faurecia and HELLA’s technologies and innovations.
We will have the opportunity to detail these priorities as well as our short-term and longer-term actions during the Capital Markets Day that FORVIA will hold on November 3, followed on the next day by an event specifically dedicated to our sustainable development roadmap.