Car parts group Faurecia cuts 2021 guidance for second time – 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
  • Issues big cut to net cash flow target

PARIS, Nov 29 (Reuters) – French auto supplier Faurecia (EPED.PA) cut its full-year guidance for a second time on Monday, citing a drop in European car production, the impact of supply bottlenecks and COVID restrictions on operations and one-off costs in the United States.

Shares in Faurecia were down 6.6% at 0907 GMT after the outlook revision.

The downgrade was made after research institute IHS Markit, on which Faurecia bases its own sales projection, said this month that worldwide car demand in the second half of 2021 would shrink by 13% to 6.8 million produced vehicles, down its previous forecast of 7.8 million vehicles.

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Faurecia also took into account an increased risk of COVID-19-related production declines as Europe faces a new wave of infections and a new variant of the virus was detected.

“We had a positive trend in November,” Chief Financial Officer Michel Favre …….

Source: https://www.reuters.com/world/europe/car-parts-group-faurecia-cuts-2021-financial-guidance-2021-11-29/

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