Nanterre (France), October 13, 2016
3.7%* value-added sales growth in Q3-2016,
or 1.6%* total sales growth,
2016 guidance fully confirmed
(*: Organic: at constant exchange rates & scope)
Sales growth is broken down as follows:
- Value-Added sales - Total sales less traded Monoliths sales. Value-Added sales do represent the real group activity.
Value-added sales reached € 3,531.3 million in Q3, up 3.7% (vs Q3 2015) at constant exchange rates and scope. They were down 0.3% on a reported basis mainly due to negative exchange rates variations of
€ 75.0 million (-2.1%). Scope impact (mainly the Fountain Inn plant disposal at end of June 2016) was negative by 1.9%.
- Monolith sales[1] were down 7.9% (vs Q3 2015) organic at € 710.0 million and down 9.0% on a reported basis. This decline was mainly coming from lower precious metal prices.
- Consolidated sales stood at € 4,241.3 million in the third quarter of 2016, up 1.6% (vs Q3 2015) at constant exchange rates and scope. Reported sales were down 1.9%. Over the quarter, exchange rate variations negatively impacted the business activity by 1.9%. Scope impact (mainly the Fountain Inn plant disposal at end of June 2016) was negative by 1.5%.
Value-added SALES PER REGION
(All variations are year over year and organic; for reported figures see Appendix)
- In Europe (including Russia), value-added sales decreased 1.9% to € 1,694.6 million, against € 1,747.3 million during the third quarter of 2015. European light vehicle production declined 2% (IHS estimate). Faurecia benefitted from strong sales to Renault-Nissan (+15%) and BMW (+9%) but was penalized by lower sales to VW and Ford.
- In North America, value-added sales reached € 1,050.7 million, down 0.5%, while production grew close to 2% (IHS estimate). Sales to Nissan grew 12% which is now our third largest client in this region. Sales were still penalized by lower production of the Chrysler 200 (€ -38 m or 340bp) and new launches in ramp-up phase.
- In Asia, value-added sales grew by 17.9% to € 587.5 million in the third quarter driven mainly by a 15% increase in China (to € 448.0m). At the same time, light vehicle production rose 10% (IHS estimate). Faurecia sales to Chinese automakers grew very fast (+40%) and now represent 14% of the overall business in China.
- In South America, value-added sales surged 50.2% to € 142.7 million, while production was down 10% (IHS estimate). This strong performance is driven by new programs being taken-over from struggling suppliers. Sales to Ford soared 135%, those to PSA expanded by 44% and those to Renault-Nissan grew 25%.
VALUE-ADDED SALES BY BUSINESS GROUP
(All variations are year over year and organic; for reported figures see Appendix)
Automotive Seating
Value-Added sales reached €1,515.4 million, up 9.4%. North American and Asian sales were up respectively 8% and 16%. This very strong performance is driven by the full effect of new programs, mainly for Renault-Nissan (+19%), Ford (+165%), BMW (+10%) and PSA (+6%).
Emissions Control Technologies
Value-Added sales reached € 960.0 million, up 2.8%. Sales in Asia increased 25% and in South America by 31%. Sales to VW group grew 17% those to Renault-Nissan by 16% whilst those to Geely-Volvo surged 57%.
Interior Systems
Value-Added sales totaled € 1,055.9 million, down 2.9%. North American product sales dropped 16%, mainly driven by the Chrysler 200 and also production adjustment of the Ford F-150. Sales to Renault-Nissan rose 10%. Interior Systems was impacted by temporary negative mix.
Faurecia fully confirms its FY 2016 guidance:
- Total sales up between 1% and 3% (organic);
- Operating margin minimum of 5%;
- Net cash flow minimum of € 300m.
NEXT EVENTS
- FY 2016 results: Thursday, February 9, 2017 (8:00 am Paris time)
A conference call for analysts, investors and media with Michel Favre, Chief Financial Officer, will take place today (October 13, 2016) at 6:00 pm (Paris time). You can also scan the QR-code below from your smartphone or tablet. It can also be followed online at: http://www.faurecia.com/en/finance
Dial-in numbers: France: +33 1 76 77 22 21 / UK: +44 203 427 1903 / USA: +1 212 444 0896
Confirmation code: 7176786
For more details, a financial presentation is available for download on Faurecia's website at www.faurecia.com.
About Faurecia
Faurecia is one of the world's largest automotive equipment suppliers, with three key Business Groups: Automotive Seating, Emissions Control Technologies and Interior Systems. In 2015, the Group posted total sales of €20.7 billion. At December 31, 2015, Faurecia employed 103,000 people in 34 countries at 330 sites and 30 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange and trades in the U.S. over-the-counter (OTC) market. For more information, visit www.faurecia.com
Contacts | MediaOlivier Le FriecHead of Media RelationsTel: +33 1 72 36 72 58Cell: +33 6 76 87 30 17olivier.lefriec@faurecia.com | Analysts/Investors Eric-Alain Michelis Director of Financial Communications Tel.: +33 1 72 36 75 70Cell: +33 6 64 64 61 29eric-alain.michelis@faurecia.com |
Definitions of terms used in this document:
Operating incomeOperating income is the Faurecia group's principal performance indicator. It corresponds to net income of fully consolidated companies before:
- other operating income and expense, corresponding to material, unusual and non-recurring items including reorganization expenses and early retirement costs, the impact of exceptional events such as the discontinuation of a business, the closure or sale of an industrial site, disposals of non-operating buildings, impairment losses recorded for property, plant and equipment or intangible assets, as well as other material and unusual losses;
- income on loans, cash investments and marketable securities;
- finance costs;
- other financial income and expense, which include the impact of discounting the pension benefit obligation and the return on related plan assets, the ineffective portion of interest rate and currency hedges, changes in value of interest rate and currency instruments for which the hedging relationship does not satisfy the criteria set forth in relationship cannot be demonstrated under IAS 39, and gains and losses on sales of shares in subsidiaries;
- taxes.
Monoliths are components used in catalytic converters for exhaust systems. Monoliths are directly managed by automakers. They are purchased from suppliers designated by them and invoiced to automakers on a pass-through basis. They are traded sales.
Value-Added sales : Total sales less traded Monoliths salesValue-Added sales are defined as: Total sales less traded Monoliths sales. Value-Added sales do represent the real group activity.
For Automotive Seating and Interior Systems, total sales are equivalent to value-added sales as there are no monoliths. Emissions Control Technologies is our only business group with Monoliths sales.
Net cash-flowNet cash-flow is defined as follow: Net cash from (used in) operating and investing activities less (acquisitions)/disposal of equity interests and businesses (net of cash and cash equivalents), other changes and proceeds from disposal of financial assets.
APPENDIX
Q3-2016 DATA
Q3 2016 | |||||
Sales by type | Product | R&D & | Value-Added* | Monoliths | Total |
in €m | Tooling | ||||
Automotive Seating | 1,448.8 | 66.6 | 1,515.4 | 1,515.4 | |
Emissions Control Technologies | 897.9 | 62.1 | 960.0 | 710.0 | 1,670.0 |
Interior Systems | 904.2 | 151.7 | 1,055.9 | 1,055.9 | |
TOTAL | 3,250.9 | 280.4 | 3,531.3 | 710.0 | 4,241.3 |
* Value-Added sales: Total sales less Monoliths sales |
- Product sales (parts and components delivered to automakers) totaled € 3,250.9 million during the third quarter of 2016, up 2.4% organic and down 1.8% on a reported basis. Exchange rate variations were negative 2.2% on the business activity or € 73.4m;
- Development, tooling and prototype sales increased by 20.9% organic, or up 20.2% on a reported basis, in the third quarter of 2016 to € 280.4 million. It was reflecting a high level of program development which will translate into future sales growth;
in €m | Q3 2015 | Currencies | Scope | Organic | Q3 2016 |
Restated IFRS 5 | (like for like)* | Reported | |||
Total sales | 4,322.0 | -83.3 | -66.2 | 68.8 | 4,241.3 |
Var in % | -1.9% | -1.5% | 1.6% | -1.9% | |
Value-Added** sales | 3,542.1 | -75.0 | -66.2 | 130.4 | 3,531.3 |
Var in % | -2.1% | -1.9% | 3.7% | -0.3% | |
Product sales | 3,308.9 | -73.4 | -64.4 | 79.8 | 3,250.9 |
Var in % | -2.2% | -1.9% | 2.4% | -1.8% | |
*: At constant exchange rates & scope **: Value-Added sales: Total sales less Monoliths sales |
in €m | Q3 2015 | Q3 2016 | Var in % | Var in % |
Restated IFRS 5 | Reported | Like for like* | ||
Total sales | ||||
Automotive Seating | 1,415.9 | 1,515.4 | 7.0% | 9.4% |
Emissions Control Technologies | 1,731.7 | 1,670.0 | -3.6% | -2.0% |
Interior Systems | 1,174.4 | 1,055.9 | -10.1% | -2.9% |
TOTAL | 4,322.0 | 4,241.3 | -1.9% | 1.6% |
Value-Added** sales | ||||
Automotive Seating | 1,415.9 | 1,515.4 | 7.0% | 9.4% |
Emissions Control Technologies | 951.6 | 960.0 | 0.9% | 2.8% |
Interior Systems | 1,174.4 | 1,055.9 | -10.1% | -2.9% |
TOTAL | 3,541.9 | 3,531.3 | -0.3% | 3.7% |
Product sales | ||||
Automotive Seating | 1,347.1 | 1,448.8 | 7.5% | 10.1% |
Emissions Control Technologies | 891.4 | 897.9 | 0.7% | 3.0% |
Interior Systems | 1,070.4 | 904.2 | -15.5% | -7.7% |
TOTAL | 3,308.9 | 3,250.9 | -1.8% | 2.4% |
*: At constant exchange rates & scope **: Value-Added sales: Total sales less Monoliths sales |
Sales by region | Q3 2015 | Q3 2016 | Var in % | ||
in €m | Restated IFRS 5 | Reported | Like for like* | LV production** | |
Value-Added sales | |||||
Europe (incl. Russia) | 1,747.3 | 1,694.6 | -3.0% | -1.9% | -2% |
North America | 1,117.1 | 1,050.7 | -5.9% | -0.5% | +2% |
Asia | 527.3 | 587.5 | 11.4% | 17.9% | +10% |
South America | 109.7 | 142.7 | 30.1% | 50.2% | -10% |
Rest of the World | 40.8 | 55.7 | 36.5% | 47.9% | NS |
TOTAL | 3,542.2 | 3,531.3 | -0.3% | 3.7% | +5% |
Product sales | |||||
Europe (incl. Russia) | 1,600.1 | 1,543.7 | -3.5% | -2.3% | -2% |
North America | 1,063.1 | 964.8 | -9.3% | -3.8% | +2% |
Asia | 506.6 | 557.6 | 10.1% | 16.7% | +10% |
South America | 100.9 | 131.6 | 30.4% | 52.1% | -10% |
Rest of the World | 38.2 | 53.3 | 39.5% | 51.6% | NS |
TOTAL | 3,308.9 | 3,250.9 | -1.8% | 2.4% | +5% |
*: At constant exchange rates & scope | |||||
**: Source IHS estimates, October 5, 2016 |
9M-2016 DATA
- Exchange rate variations were negative (€316 m or -2.3% on total sales year-to-date);
- Monoliths sales were negatively impacted by lower precious metal prices. It represented a negative impact of around €230 m (or close to 930 bp) for the first 9 month;
- The disposal of the Fountain Inn plant (USA) at the end of June 2016 will have a negative impact on total (& value-added) sales or around $95 m in H2 2016.
9M 2016 | |||||
Sales by type | Product | R&D & | Value-Added* | Monoliths | Total |
in €m | Tooling | ||||
Automotive Seating | 4,583.7 | 230.9 | 4,814.6 | 4,814.6 | |
Emissions Control Technologies | 2,833.7 | 207.7 | 3,041.4 | 2,320.0 | 5,361.4 |
Interior Systems | 3,128.2 | 468.7 | 3,596.9 | 3,596.9 | |
TOTAL | 10,545.6 | 907.3 | 11,452.9 | 2,320.0 | 13,772.9 |
* Value-Added sales: Total sales less Monoliths sales |
in €m | 9M 2015 | Currencies | Scope | Organic | 9M 2016 |
Restated IFRS 5 | (like for like)* | Reported | |||
Total sales | 13,810.7 | -316.3 | -112.3 | 390.8 | 13,772.9 |
Var in % | -2.3% | -0.8% | 2.8% | -0.3% | |
Value-Added** sales | 11,330.0 | -285.4 | -112.3 | 520.6 | 11,452.9 |
Var in % | -2.5% | -1.0% | 4.6% | 1.1% | |
Product sales | 10,540.6 | -268.2 | -110.2 | 383.4 | 10,545.6 |
Var in % | -2.5% | -1.0% | 3.6% | 0.0% | |
*: At constant exchange rates & scope **: Value-Added sales: Total sales less Monoliths sales |
in €m | 9M 2015 | 9M 2016 | Var in % | Var in % |
Restated IFRS 5 | Reported | Like for like* | ||
Total sales | ||||
Automotive Seating | 4,519.5 | 4,814.6 | 6.5% | 9.0% |
Emissions Control Technologies | 5,542.9 | 5,361.4 | -3.3% | -0.7% |
Interior Systems | 3,748.3 | 3,596.9 | -4.0% | 0.5% |
TOTAL | 13,810.7 | 13,772.9 | -0.3% | 2.8% |
Value-Added** sales | ||||
Automotive Seating | 4,519.5 | 4,814.6 | 6.5% | 9.0% |
Emissions Control Technologies | 3,061.1 | 3,041.4 | -0.6% | 3.1% |
Interior Systems | 3,748.3 | 3,596.9 | -4.0% | 0.5% |
TOTAL | 11,330.0 | 11,452.9 | 1.1% | 4.6% |
Product sales | ||||
Automotive Seating | 4,285.3 | 4,583.7 | 7.0% | 9.5% |
Emissions Control Technologies | 2,866.6 | 2,833.7 | -1.1% | 1.9% |
Interior Systems | 3,388.7 | 3,128.2 | -7.7% | -2.3% |
TOTAL | 10,540.6 | 10,545.6 | 0.0% | 3.6% |
*: At constant exchange rates & scope **: Value-Added sales: Total sales less Monoliths sales |
Sales by region | 9M 2015 | 9M 2016 | Var in % | ||
in €m | Restated IFRS 5 | Reported | Like for like* | LV production** | |
Value-Added sales | |||||
Europe (incl. Russia) | 5,697.0 | 5,898.0 | 3.5% | 4.6% | 3% |
North America | 3,398.5 | 3,276.0 | -3.6% | -1.4% | 3% |
Asia | 1,740.4 | 1,768.8 | 1.6% | 9.2% | 5% |
South America | 363.2 | 360.8 | -0.7% | 27.2% | -16% |
Rest of the World | 131.0 | 149.2 | 13.9% | 36.4% | NS |
TOTAL | 11,330.0 | 11,452.9 | 1.1% | 4.6% | 3% |
Product sales | |||||
Europe (incl. Russia) | 5,212.1 | 5,376.7 | 3.2% | 4.2% | 3% |
North America | 3,211.9 | 3,032.7 | -5.6% | -3.3% | 3% |
Asia | 1,663.4 | 1,664.4 | 0.1% | 7.7% | 5% |
South America | 330.0 | 331.6 | 0.5% | 29.4% | -16% |
Rest of the World | 123.2 | 140.2 | 13.8% | 36.1% | NS |
TOTAL | 10,540.6 | 10,545.6 | 0.0% | 3.6% | 3% |
*: At constant exchange rates & scope | |||||
**: Source IHS estimates, October 5, 2016 |
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: FAURECIA via Globenewswire