AUBURN HILLS, Mich., April 20, 2018 /PRNewswire/ — 

* The implementation of IFRS15 led to minor adjustments to the 2017 sales figures excluding monoliths; a table in appendix indicates 2017 sales figures by quarter/region/business group restated for this implementation

** Source: IHS April 2018

STRONG SALES GROWTH OF 9.3% AT CONSTANT CURRENCIES, 960 BASIS POINTS ABOVE WORLDWIDE AUTOMOTIVE PRODUCTION (-0.3%, source: IHS April 2018)

• All regions significantly outperformed automotive production growth
• All three Business Groups posted solid growth at constant currencies
• Currencies had a negative impact of 6.7% (mostly the USD vs. the euro) leading to reported sales growth of 2.7%

STRONG SALES GROWTH OF 9.3% AT CONSTANT CURRENCIES, 960 BASIS POINTS ABOVE WORLDWIDE AUTOMOTIVE PRODUCTION

In Q1 2018, sales amounted to €4,315 million, up 9.3% at constant currencies

• This 9.3% growth significantly outperformed worldwide automotive production, which dropped by 0.3% in the quarter (source: IHS April 2018)
• • All regions significantly outperformed automotive production growth
  • All three Business Groups posted solid growth at constant currencies
• Growth at constant currencies included a contribution of €57 million from the new Chinese JVs signed in 2017, representing 1.4% of last year’s sales (€23 million in Seating and €34 million in Interiors)
• Currencies had a negative impact of €281 million, representing 6.7% of last year’s sales (mostly attributable to the USD vs. the euro); as a consequence, sales on a reported basis grew by 2.7%

SALES BY REGION

Europe (53% of Group sales): Sales up 9.1% at constant currencies, 920bps above regional automotive production (-0.1%, source: IHS April 2018)

Sales amounted to €2,279 million in Q1 2018, up 9.1% at constant currencies and up 8.1% on a reported basis (currencies had a limited negative impact of €20 million or -1.0% of last-year’s sales).

Growth in Europe was mainly driven by Seating, which generated almost half of the sales growth at constant currencies in the quarter, supported by strong sales to PSA for the successful 3008 and 5008 SUVs. Interiors (mainly sales to JLR, Volvo and PSA) and Clean Mobility (mainly sales to PSA, commercial vehicles and Tata) also contributed to sales growth in the quarter.

North America (25% of Group sales): Sales up 4.2% at constant currencies, 690bps above regional automotive production (-2.7%, source: IHS April 2018)

Sales amounted to €1,063 million in Q1 2018, up 4.2% at constant currencies and down 9.7% on a reported basis (currencies had a strong negative impact of €164 million or -14.0% of last-year’s sales, mostly due to the USD vs. the euro).

Growth in North America was driven by Interiors (+19.0% at constant currencies) and Clean Mobility (+9.3% at constant currencies), while Seating dropped (-9.0% at constant currencies), reflecting market decline combined with the expected ramp-down of production for two models.

Asia (17% of Group sales): Sales up 15.2% at constant currencies, 1,570bps above regional automotive production (-0.5%, source: IHS April 2018)

Sales amounted to €742 million in Q1 2018, up 15.2% at constant currencies and up 7.8% on a reported basis (currencies had a significant negative impact of €51 million or -7.4% of last-year’s sales, mostly due to the CNY vs. the euro).

Growth in Asia at constant currencies included a contribution of €57 million from the new JVs signed in 2017, representing 8.3% of last year’s sales in Asia.

It was mostly driven by Seating and Interiors and sales in China, where sales amounted to €565 million (76% of total sales in Asia and 13% of total Group sales). They were up 12.0% at constant currencies, 1,340bps above Chinese automotive production (-1.4%, source: IHS April 2018). They included the above-mentioned contribution of €57 million from the new JVs signed in 2017, representing 10.6% of last year’s sales in China. Sales to Chinese OEMs amounted to €153 million (up 89% at constant currencies) and represented 27% of sales in the country (vs. 16% in Q1 2017).

South America (4% of Group sales): Sales up 23.3% at constant currencies, 1,150bps above regional automotive production (+11.8%, source: IHS April 2018)

Sales amounted to €168 million in Q1 2018, up 23.3% at constant currencies and broadly stable (-0.5%) on a reported basis (currencies had a significant negative impact of €40 million or -23.8% of last-year’s sales, due to the Brazilian Real and the Argentine Peso vs. the euro).

Growth in South America was driven by the three Business Groups, reflecting continuous market recovery and strong momentum in sales to major OEMs, mainly FCA, Ford, VW and Toyota.

SALES BY BUSINESS GROUP

Seating (42% of Group sales): Sales up 7.5% at constant currencies, 780bps above worldwide automotive production (-0.3%, source: IHS April 2018)

Sales amounted to €1,817 million in Q1 2018, up 7.5% at constant currencies and up 1.7% on a reported basis (currencies had a significant negative impact of €103 million or -5.8% of last-year’s sales).

Growth at constant currencies included a contribution of €23 million from the new JV signed in 2017, representing 1.3% of last year’s sales.

Growth at constant currencies was driven by Europe, Asia and South America, all growing in double-digits by respectively +10.8%, +25.5% and +19.2%. North America posted a 9.0% drop in the quarter, reflecting adverse market conditions combined with the ramp-down in production of two models.

Interiors (32% of Group sales): Sales up 14.0% at constant currencies, 1,430bps above worldwide automotive production (-0.3%, source: IHS April 2018)

Sales amounted to €1,392 million in Q1 2018, up 14.0% at constant currencies and up 7.2% on a reported basis (currencies had a significant negative impact of €89 million or -6.8% of last-year’s sales).

Growth at constant currencies included a contribution of €34 million from the new JV signed in 2017, representing 2.6% of last year’s sales.

Growth at constant currencies was driven by all regions with Europe at +9.1%, North America at +19.0%, Asia at +25.9% and South America at +23.4%.

Clean Mobility (26% of Group sales): Sales up 6.8% at constant currencies, 710bps above worldwide automotive production (-0.3%, source: IHS April 2018)

Sales amounted to €1,106 million in Q1 2018, up 6.8% at constant currencies and down 1.1% on a reported basis (currencies had a significant negative impact of €89 million or -8.0% of last-year’s sales).

Growth at constant currencies was driven by solid growth in Europe at +5.3%, North America at +9.3% and South America at +30.6%, while Asia grew by a limited +0.8% reflecting the impact of two programs’ termination that largely offset continued strong growth (+14%) with Chinese OEMs.

ANNUAL SHAREHOLDERS’ MEETING

The Board of Directors met on April 19, 2018 and approved the agenda of the Group’s Annual Shareholders’ Meeting to be held on Tuesday May 29, 2018 at 10:00am (Paris time) at Pavillon d’Armenonville in Paris.

This agenda includes the proposed payment in cash of a dividend of €1.10 per share, up 22% vs. the dividend of €0.90 paid last year. The ex-coupon date will be June 1, 2018, and the dividend will be paid on June 5, 2018.

OUTLOOK

Faurecia expects worldwide automotive production to grow by at least 2% in 2018 vs. 2017.

The expectation of a robust double-digit sales growth at constant currencies in Q2 further strengthens Faurecia’s confidence for 2018.

Reminder of the full-year 2018 guidance that was presented on February 16:

• Sales growth at constant currencies of at least +7%, i.e. at least 500bps above worldwide automotive production growth,
• Operating margin above 7% of sales,
• Net cash flow of above €500 million,
• Earnings per share of €5.00.

Faurecia’s next event will be the Capital Markets Day to be held in Paris on May 15, 2018 that will present its strategic vision for Smart Life on Board (Seating and Interiors). It will also provide with a quick update on Sustainable Mobility as well as 2020 financial targets and 2025 ambition.

The conference call for financial analysts and media will be held today at 8:00 am (Paris time).

Dial-in numbers:

• France:  +33 1 76 77 22 74
• UK:       +44(0)330 336 9105
• USA:     +1 323-794-2093

No access code is needed.

The financial presentation accompanying the conference call will be available at 7:30 am today (Paris time) on the Faurecia website: www.faurecia.com and may also be viewed at the following link: https://edge.media-server.com/m6/p/a5nxrnic

The replay will be available at the same link in the afternoon.

About Faurecia
Founded in 1997, Faurecia has grown to become a major player in the global automotive industry. With 330 sites including 30 R&D centers, 110 000 employees in 35 countries, Faurecia is now a global leader in its three areas of business: Seating, Interiors and Clean Mobility. Faurecia has focused its technology strategy on providing solutions for smart life on board and sustainable mobility.  In 2017, the Group posted sales of €17.0 billion. Faurecia is listed on the Euronext Paris stock exchange and is a component of the CAC Next20 index. For more information, please visit www.faurecia.com   

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SOURCE Faurecia

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