Revenue increases during 2019, but 2020 will be a “challenging year”. This is the opinion of Patrick Koller, Faurecia’s CEO, while commenting the near future. The French group, specialized in the manufacturing of components and interiors for the automotive sector, published its 2019 results recently.
Sales increase for Faurecia
The group has sold goods worth 17.76 billion euro in 2019, up 1.4% on yearly base. A positive performance, considering the automobile production at global levels, which dropped by 5.8% during the year in question. EBIT was of 1.28 billion euro, up 0.7% in comparison to 2018, leading to an incremented cashflow: from 528.1 million in 2018 to 587 million in 2019 (+11.2%).
Seating solutions perform poorly
The Seating department is worth 39% of the group’s turnover, and it decreased by 6.2% on yearly base.
This section had sold goods for 7.43 billion euro in 2018, while the amount in 2019 was of 6.97 billion. The contraction was mainly due to the slowdown in global automotive production. “Due to this fact, seating solutions all around the world performed poorly”, explains Faurecia in a note. The consequences should also perpetuate for the first half of 2020. That being said, during the second half of the year, vehicle production, along with seating solutions, should increase and even grow at a faster pace in 2021.
“2019 was another year during which we proved our resilience in a changing environment, all while continuing to implement our change strategy. We reached all of our financial goals thanks to the adaptability we have for changing market conditions, which have worsened throughout the year. At the same time, we continued to implement our strategy focused on the future vehicle and sustainable mobility – explains Koller -. 2020 will likely be another difficult year in terms of market conditions. We foresee another 3% decrease in total vehicle production at a global level. As a result, we have already started implementing proper solutions to improve our performances. Faurecia will continue to focus on being resilient and generating cashflow”.