Earnings Release • Apr 21, 2009
Earnings Release
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Press release Not for distribution, directly or indirectly, in or into the United States,
Canada, Australia or Japan
Nanterre, April 21, 2009
| In million euros (EUR) | 1st quarter 2009 |
1st quarter 2008 |
Change 2009/2008 |
|---|---|---|---|
| Automotive Seating at constant exchange rates |
872.5 | 1,349.1 | (35.3)% (34.7)% |
| Vehicle Interiors at constant exchange rates |
567.2 | 896.8 | (36.7)% (35.1)% |
| Interior Modules at constant exchange rates |
1,439.7 | 2,245.9 | (35.9)% (34.9)% |
| Exhaust Systems | 381.4 | 740.3 | (48.5)% |
| Excluding monoliths & at constant exchange rates |
197.9 | 341.2 | (42.0)% (41.5)% |
| Exterior Systems at constant exchange rates |
186.7 | 258.6 | (27.8)% (28.0)% |
| Other Modules | 568.1 | 998.9 | (43.1)% |
| Excluding monoliths | 384.6 | 599.8 | (35.9)% |
| & at constant exchange rates | (35.7)% | ||
| Total | 2,007.8 | 3,244.8 | (38.1)% |
| Excluding monoliths | 1,824.3 | 2,845.7 | (35.9)% |
| at constant exchange rates & on a comparable basis |
(35.0)% |
Faurecia's consolidated sales for the first quarter of 2009 totaled 2,007.8 million euros, slipping 38.1% in relation to the first quarter of 2008. Excluding monoliths, like-for-like sales were down 35.0%. Exchange-rate variations had a negative impact of 0.9%.
The first quarter saw a sharp drop in business around the world. However, Faurecia's effective positioning in relation to customers and products helped mitigate the effect of plummeting automotive production on its sales:
In Europe, sales totaled 1,527.1 million euros, with like-for-like sales down 34.5% excluding monoliths;
Press release Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan
Sales in the Interior Modules sector were down 34.9% in the first quarter of 2009 on a like-for-like basis, totaling 1,439.7 million euros.
Like-for-like sales were down 34.7% in the first quarter:
Like-for-like sales were down 35.1%:
Sales of Other Modules were down 35.7% excluding monoliths and on a like-for-like basis, totaling 568.1 million euros.
Excluding monoliths, like-for-like sales were down 41.5%:
Like-for-like sales were down 28.0%, experiencing a 25.1% drop in Europe (driven by the relative resistance of Audi production volumes) and 79.0% in North America, with Chrysler accounting for the majority of business.
Press release Not for distribution, directly or indirectly, in or into the United States, Canada, Australia or Japan
Business in the first quarter was marked by a severe contraction in January and February, with like-for-like sales down 38.2% and 42.9% excluding monoliths. The situation began to stabilize in March—particularly in Europe—with a drop of 24.1%. This confirms Faurecia's working hypothesis for 2009, forecasting a 20% drop in sales in Europe and a 30% drop in North America.
In the first quarter, Faurecia also implemented the "Challenge 2009" plan announced in February. This plan, targeting 2009 cost savings of 600 million euros, is now in place and is producing the expected results. The direct production costs have been reduced in the first quarter and adjusted to match production volumes for the month of March. Fixed charges were also down in the first quarter by 90 million euros, in line with the annual target of 300 million euros.
In April, Faurecia also completed the first stage of its campaign to secure financing outlined in the "Challenge 2009" plan. This initial step, covering a total of 1,633 million euros, involves loans totaling 1,170 million euros from banks and 250 million euros from Peugeot SA, along with an additional credit line of 213 million euros. The first two arrangements were renegotiated to adapt covenants to the sharp drop in automotive production and its impact on 2009 sales, particularly in the first half of the year.
The second stage of the financing plan will involve a capital increase of 450 million euros underwritten by Peugeot SA., which will be put to the vote at the Shareholders' Meeting on April 23, 2009.
Faurecia is one of the world's leading automotive equipment suppliers, specializing in four major activities: seats, vehicle interiors, front ends and exhaust systems. In 2008, the Group posted sales of 12.01 billion euros. It has operations in 29 countries at 190 sites and 28 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange. For more information visit: www.faurecia.com
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This press release and the information contained herein in no way represent an offer of securities for sale nor the solicitation of an offer to purchase securities, in the United States or any other country.
Securities may not be offered or sold in the United States unless they are registered under the U.S. Securities Act of 1933, as amended or exempt from registration. The shares and preferential subscription rights of Faurecia have not been and will not be registered under the U.S. Securities Act and Faurecia does not intend to make a public offer of its securities in the United States. Copies of this document are not being, and should not be, distributed in or sent into the United States.
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Olivier Le Friec Press Relations Manager Tel. +33 (0)1 72 36 72 58 Cell +33 (0)6 76 87 30 17 [email protected]
Hélène Ducournau-Josselin Press Relations Tel. +33 (0)1 72 36 70 55 Cell +33 (0)6 98 05 35 33 [email protected] Analysts/Investors Bruno de Chiffreville Investor Relations Tel. +33 (0)1 72 36 75 70 Cell +33 (0)6 76 87 30 17 [email protected]
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