Auto supplier Forvia misses half-year profit expectations – Reuters.com

July 25, 2022 by No Comments

July 25 (Reuters) – Forvia, the European car parts maker born from Faurecia’s (EPED.PA) takeover of German rival Hella (HLE.DE), fell short of half-year operating profit expectations on Monday, impacted by global chip shortages, the war in Ukraine and lockdowns in China.

The group, which sealed its takeover of German automotive lighting group Hella in January, reported an operating profit of 426 million euros ($434.5 million) for the first six months of 2022, corresponding to a margin of 3.7%.

Analysts polled by Visible Alpha had on average predicted an operating profit of 436.1 million euros with a 4% profit margin.

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The combined entity sells seats, dashboards and fuel systems to carmakers which, after two years of disruptions from the coronavirus pandemic, are facing fresh supply jags due to Chinese lockdowns and Russia’s invasion of Ukraine.

“We are confident that the second half will allow us to improve our first half performance and fully confirm our objectives for the year,” Faurecia’s Chief Executive Officer Patrick Koller said in a statement.

Forvia posted first-half sales of 11.62 billion euros, beating the consensus estimate of 11.02 billion.

($1 = 0.9804 euros)

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Reporting by Elena Vardon and Juliette Portala, editing by Milla Nissi

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Source: https://www.reuters.com/business/autos-transportation/auto-supplier-forvia-misses-half-year-profit-expectations-2022-07-25/

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