Car parts group Faurecia cuts 2021 financial guidance – Reuters

November 29, 2021 by No Comments

French car parts supplier Faurecia’s logo is seen during the company’s investor day in Paris, France, April 19, 2016. REUTERS/Charles Platiau/File Photo

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  • Cuts 2021 sales outlook to 15-15.5 bln euros
  • Also issues big cut to net cash flow target

PARIS, Nov 29 (Reuters) – French automotive supplier Faurecia (EPED.PA) cut its guidance for the 2021 financial year, citing a drop in European automotive production, difficulties to adapt to stop-and-go generated costs, and one-off costs in the United States.

The company now forecast 2021 sales of between 15-15.5 billion euros ($16.92 to $17.49 billion) and an operating profit margin of 5.5%, compared to a previous target of sales at 15.5 billion euros and a 6-6.2 percent margin.

The cut also heavily impacted its net cash flow target, which Faurecia now forecast at “more than 300 million euros”, down from a previously communicated 500 million euros target.

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The announcement came after the French group earlier this year agreed to acquire a majority stake in German automotive lighting group Hella (HLE.DE) in a 6.7 billion euros deal.

The Hella acquisition should be completed by end February when Faurecia plans …….



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