Earnings Release • Feb 12, 2013
Earnings Release
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Nanterre, February 12, 2013
Yann Delabrière, Chairman and CEO stated: "In 2012, Faurecia continued to show strong growth in particular in North America with an increase in sales of 41% and in Asia with an increase of 24%. We accelerated the geographical re-balancing of sales as well as the diversification of the customer base. We continue to have a very strong commercial momentum as demonstrated by the record order intake of 17.8 billion euros. The action plans we have underway to offset the ongoing drop in European vehicle production and focus on cash generation will enable us to see an improvement in our performance in 2013."
| In € million | 2012 | 2011 | H2-2012 | H2-2011 |
|---|---|---|---|---|
| Total sales | 17,365 | 16,190 | 8,600 | 8,040 |
| Change | +7.3% | - | +7.0% | - |
| Operating income | 514 | 651 | 211 | 311 |
| as % of Total Sales | 3.0 | 4.0 | 2.5 | 3.9 |
| Net income (Group share) | 142 | 371 | 22 | 185 |
| Net financial debt (at December 31) | 1,807 | 1,224 | 1,807 | 1,224 |
| Capital expenditure | 557 | 451 | 291 | 275 |
The growth in global automotive production from 2011 to 2012, estimated at 6% worldwide, masks some significant regional disparities. Although growth continued at a strong pace in North America and Asia (where automotive production rose by 17% and 12% respectively), it has seen a significant downturn in Europe, where production fell by an estimated 6% from 2011.
Product sales (parts and components delivered to automakers) totaled €13.30 billion, compared with €12.39 billion in 2011, reflecting a 7.3% increase (+1.4% at constant exchange rates and scope). They posted an 8.0% increase in the second half of 2012. The Saline plant in the USA, which was acquired from Ford and consolidated from June 2012, represents €281 million of the Group's sales.
Faurecia's total sales for 2012 stood at €17.36 billion (+2.0% at constant exchange rates and scope) compared to €16.19 billion in 2011, an increase of 7.3%. During the second half of 2012, total sales were up 7.0%.
2012 marked another record year for new contracts at €17.8 billion (including 53% outside Europe), taking the backlog to €38.8 billion (for the total term of contracts) or the equivalent of nearly three years of product sales.
Outside Europe, product sales grew by 30% and outpaced automotive production in all regions. This allowed the Group to accelerate the rebalancing of its product sales by region. For the year, North America accounted for 27% of product sales, with 10% in Asia and 5% in South America. Faurecia also continued to diversify its customer base: German automakers represent 39% of sales, followed by North American at 28%, French at 21% and Asian at 7%. The share of product sales outside Europe stood at 48% in the second half of 2012, an increase of 8 percentage points over the same period in 2011. Ford has become Faurecia's second-biggest customer, after Volkswagen.
By geographic region, product sales in 2012 break down as follows:
Growth was strongest in Interior Systems, reflecting market share gains in North America, and Emissions Control Technologies, where growth was particularly strong in Asia and in the commercial vehicles activity which demonstrated its strong development potential. Growth in Automotive Seating and Automotive Exteriors was more adversely affected by the drop in automotive production in Europe, although Automotive Exteriors had a good development in North America.
1 Following Russia's integration in 2012 into the Europe category (previously in "rest of the world") the published fiscal 2011 figures were restated to ensure comparability.
Operating income for 2012 stood at €514 million, or 3.0% of total sales, compared with €651 million in 2011. Operating income in the second half of 2012 came to €211 million, equivalent to 2.5% of total sales.
This drop was driven primarily by a rapid slowdown in European automotive production. In North America, strong growth in sales was not sufficiently translated into higher operating income as a result of exceptional items linked to the launch of new programs. Operating income remained high in Asia.
Consolidated net income (Group share) reached €142 million, compared to a net profit of €371 million in 2011. In the second half, it amounted to €22 million. Key factors in addition to operating income include:
Capital expenditure rose 23% to €557 million, compared with €451 million in 2011, reflecting strong sales growth. The geographic spread of capital expenditure will support further growth outside Europe.
At end-December 2012, net financial debt stood at €1.8 billion, versus €1.5 billion at end-June 2012. The rise in net debt results principally from the rapid slowdown in automotive production in Europe, particularly during the last two months of the year, which led to an increase in inventories and lower sales of receivables.
Based on Faurecia's performance in 2012 and the prospect of a continuing decline in the European market (down 4-5% in 2013), Faurecia has set itself three priorities for 2013:
Taking into account the Group's results in a difficult European context, and to mobilize all resources towards future development, the Board of Directors has decided to propose to the next shareholders' meeting that no dividend be paid for 2012.
On this basis, Faurecia expects to increase its sales in 2013 to between €17.5 and 17.9 billion (at 2012 exchange rates), to grow its operating income and to have a neutral net cash flow (before cash for restructuring estimated at between €120 and €140 million).
Faurecia is the world's sixth-largest automotive equipment supplier with four key Business Groups: Automotive Seating, Emissions Control Technologies, Interior Systems and Automotive Exteriors. In 2012, the Group posted total sales of €17.4 billion (\$22.5 billion). At December 31, 2012, Faurecia employed 94,000 people in 34 countries at 320 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
Kate Philipps EVP Group Communications Tel.: +33 1 72 36 70 94 Cell: +33 6 13 42 46 97 [email protected] Media Olivier Le Friec Head of Media Relations Tel: +33 1 72 36 72 58 Cell: +33 6 76 87 30 17 [email protected]
Analysts/Investors Eric-Alain Michelis Director of Financial Communications Tel.: +33 1 72 36 75 70 Cell: +33 6 64 64 61 29 [email protected]
| 2012 In € million |
Product sales | Monolith sales | Development, tooling, prototyping and other services |
Total sales |
|---|---|---|---|---|
| Automotive Seating | 4,904.5 | - | 251.4 | 5,155.9 |
| Interior Systems | 3,597.1 | - | 755.6 | 4,352.7 |
| Total Interior Modules | 8,501.6 | - | 1,007.0 | 9,508.6 |
| Emissions Control Technologies |
3,233.2 | 2,654.1 | 192.2 | 6,079.5 |
| Automotive Exteriors | 1,561.5 | 214.9 | 1,776.4 | |
| Total Other Modules | 4,794.7 | 2,654.1 | 407.1 | 7,855.9 |
| TOTAL | 13,296.3 | 2,654.1 | 1,414.1 | 17,364.5 |
| In € million | H2-2012 | H2-2011 | Var. (%)* | 2012 | 2011 | Var. (%)* |
|---|---|---|---|---|---|---|
| Chiffre d'affaires | 8,599.9 | 8,039.9 | 0.2 | 17,364.5 | 16,190.2 | 2.0 |
| Interior Modules | 4,775.4 | 4,240.5 | 3.7 | 9,508.6 | 8,626.7 | 3.3 |
| Other Modules | 3,824.5 | 3,799.4 | (3.6) | 7,855.9 | 7,563.5 | 0.6 |
| Product Sales | 6,543.4 | 6,058.9 | 0.3 | 13,296.3 | 12,391.1 | 1.4 |
| Automotive Seating | 2,346.5 | 2,319.9 | (1.9) | 4,904.5 | 4,769.9 | (1.0) |
| Interior Systems | 1,863.4 | 1,492.3 | 4.9 | 3,597.1 | 3,075.3 | 4.2 |
| Total Interior Modules | 4,209.9 | 3,812.2 | 0.8 | 8,501.6 | 7,845.1 | 1.0 |
| Emissions Control Technologies | 1,573.4 | 1,478.3 | 2.2 | 3,233.2 | 2,934.6 | 6.4 |
| Automotive Exteriors | 760.2 | 768.4 | (5.9) | 1,561.5 | 1,611.3 | (5.6) |
| Total Other Modules | 2,333.5 | 2,246.7 | (0.5) | 4,794.7 | 4,545.9 | 2.2 |
* = like-for-like
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