Earnings Release • Jul 24, 2012
Earnings Release
Open in ViewerOpens in native device viewer
Nanterre, July 24, 2012
| In € million | 1st half 2011 |
1st half 2012 |
|---|---|---|
| Sales Like-for-like |
8,150.3 | 8,764.6 3.8% |
| Product sales Like-for-like |
6,332.2 | 6,752.9 2.6% |
| Operating income as % of sales |
340.0 4.2% |
302.5 3.5% |
| Net income (Group share) | 185.8 | 120.0 |
| Net income per share (fully diluted €) | 1.57 | 1.04 |
| Capital expenditure | 176.8 | 265.9 |
| Net financial debt (at June 30) |
1,255.2 | 1,524.7 |
Faurecia's consolidated sales for the first half of 2012 stood at 8,764.6 million euros, up 7.5% compared with the first half of 2011.
| In € million | H1 2012 | H1 2011 | Change | Change (*) |
|---|---|---|---|---|
| Consolidated sales | 8,764.6 | 8,150.3 | 7.5% | 3.8% |
| Product sales | 6,752.9 | 6,332.2 | 6.6% | 2.6% |
| Monolith sales | 1,410.3 | 1,324.9 | 6.4% | 3.8% |
| Development, tooling and prototyping costs, and other services |
601.4 | 493.2 | 21.9% | 20.2% |
(*) at constant exchange rates and scope
Monolith sales1 totaled 1,413.3 million euros (+6.4%), up 3.8% (at constant exchange rates) on the same period in 2011.
Billing of development, tooling and prototyping costs and other services amounted to 601.4 million euros, up 21.9% (20.2% at constant exchange rates and scope) compared with the first half of 2011. This increase reflects the significant development generated by the new contracts acquired last year and during the first half of 2012.
Product sales, including deliveries of parts and components to automakers, totaled 6,752.9 million euros, up 6.6% (2.6% at constant exchange rates and scope) compared with the first half of 2011.
Product sales by region for the first half of 2012:
In North America, they amounted to 1,694.3 million euros (representing over 25% of total product sales for the first time), an increase of 38.5% or 21.8% at constant exchange rates and scope.
1 Monoliths: precious metals and ceramic incorporated into the emissions control systems.
In Europe2 , product sales stand at 3,995.3 million euros, down 4.6% (5.2% at constant exchange rates and scope) in line with Faurecia forecasts announced in February. The downturn in European production (excluding Japanese automakers) in the first half, estimated at 6% (source IHS Automotive, July 2012) should also be considered to put this figure into perspective.
In Europe, 49% of Faurecia's product sales were posted with German automakers (Volkswagen, BMW, Daimler and Porsche), representing growth of 4 percentage points compared with the same period in 2011.
| In € million | H1 2012 | H1 2011 | Change | Change (*) |
|---|---|---|---|---|
| Product sales | 6,752.9 | 6,332.2 | 6.6% | 2.6% |
| - Europe | 3,995.3 | 4,188.3 | (4.6%) | (5.2%) |
| - North America | 1,694.3 | 1,223.6 | 38.5% | 21.8% |
| - South America | 316.8 | 316.6 | 0.1% | 4.4% |
| - Asia | 650.7 | 507.6 | 28.2% | 16.9% |
| of which China - |
510.1 | 398.3 | 28.1% | 14.3% |
| - Other | 95.9 | 96.1 | (0.2%) | 5.2% |
(*) at constant exchange rates and scope
2 Following Russia's integration in 2012 into the Europe category (previously in "other countries") the H1 2011 figures for Europe were restated to ensure comparability.
Product sales by Business Group:
Product sales reached 1,659.8 million euros, up 14.0% and 10.7% at constant exchange rates, driven by significant growth in North America (+16% like-for-like) and in Asia (+21% like-forlike), while sales of exhaust systems for commercial vehicles were up 82% over the period.
Product sales reached 1,733.7 million euros, up 9.5% and 3.5% at constant exchange rates and scope as a result of rapid growth in North America (+45% declared and +21% like-for-like).
Product sales amounted to 2,558.1 million euros, up 4.4% and were stable (-0.1%) at constant exchange rates and scope. The drop in European sales was countered by growth outside Europe.
Product sales reached 801.3 million euros, up 5.3% at constant exchange rates and scope. This business began its international development in 2012 and currently carries out 95% of its business in Europe. It is developing this year in North America with the new Belvidere plant (Illinois, USA), and in South America with three plants under construction.
| In € million | H1 2012 | H1 2011 | Change | Change (*) |
|---|---|---|---|---|
| Product sales | 6,752.9 | 6,332.2 | 6.6% | 2.6% |
| Automotive Seating | 2,558.1 | 2,450.0 | 4.4% | (0.1%) |
| Interior Systems | 1,733.7 | 1,583.0 | 9.5% | 3.5% |
| Interior Modules (total) | 4,291.8 | 4,032.9 | 6.4% | 1.3% |
| Emissions Control Technologies | 1,659.8 | 1,456.4 | 14.0% | 10.7% |
| Automotive Exteriors | 801.3 | 842.9 | (4.9%) | (5.3%) |
| Other modules (total) | 2,461.1 | 2,299.3 | 7.0% | 4.8% |
(*) at constant exchange rates and scope
Operating income in the first half of 2012 amounted to 302.5 million euros, compared with 340.0 million euros posted in the same period in 2011. This represents 3.5% of total sales, compared with 4.2% in the first half of 2011.
The variation in operating income is the result of uneven developments in key regional markets:
Consolidated net income (Group share) in the first six months of 2012 reflected a profit of 120.0 million euros (i.e.: 1.04 euro per share), compared with a profit of 185.8 million euros for the first six months of 2011.
In line with the Group's growth strategy and its aim to strengthen activities outside Europe, capital expenditure was up 50%, at 265.9 million euros, representing 3.0% of sales, compared with 176.8 million euros (2.2% of sales) in the first half of 2011. Half of capital expenditure was incurred outside Europe.
The increase in capital expenditure and in the Group's working capital requirements for research and tooling to be billed at the start of new programs, results in a negative net cash flow of 119 million euros.
Net debt on June 30, 2012 totaled 1,525 million euros compared with 1,255 million euros on June 30, 2011 and 1,224 million euros on December 31, 2011.
This figure takes into account 59 million euros in acquisitions (mainly for the Saline plant (Michigan, USA), non-consolidated joint ventures in China for Geely-Volvo and several minor acquisitions consolidated for Faurecia Interior Systems in Europe) and 39 million euros of dividend payments to shareholders.
Since November 2011, Faurecia has conducted a series of financial operations to strengthen liquidity. At June 30, the Group had 800 million euros in liquidity and 730 million euros in unused credit lines.
The contrasting nature of automobile production should continue in the second half, with Europe's automobile production maintaining its downward trend compared with 2011, and other regions maintaining their growth.
IHS Automotive production forecasts for the second half predict a 7% drop in Europe compared with the same period last year, and growth of 6% in North America, 13% in South America and 6% in China.
Faurecia's operating income should continue to see the impact of contracting automobile production in Europe, which is partly countered by increased sales with German automakers. However, growth in other regions should continue to contribute favorably to the operating income.
Against this backdrop, Faurecia has revised its 2012 targets as follows:
| In € million | H1 2012 | H1 2011 | Change | Change (*) |
|---|---|---|---|---|
| Total sales | 8,764.6 | 8,150.3 | 7.5% | 3.8% |
| Automotive Seating | 2,668.5 | 2,547.6 | 4.7% | 0.3% |
| Interior Systems | 2,064.8 | 1,838.6 | 12.3% | 6.9% |
| Interior Modules (total) | 4,733.3 | 4,386.2 | 7.9% | 3.0% |
| Emissions Control Technologies | 3,155.0 | 2,848.7 | 10.8% | 7.8% |
| Automotive Exteriors | 876.3 | 915.4 | (4.3%) | (4.6%) |
| Other modules (total) | 4,031.3 | 3,764.1 | 7.1% | 4.8% |
(*) at constant exchange rates and scope
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 2011, the Group posted total sales of €16.2 billion (\$22.5 billion). At December 31, 2011, Faurecia employed 84,000 people in 33 countries at 270 sites and 40 R&D centers. Faurecia is listed on the NYSE Euronext Paris stock exchange. For more information, visit: www.faurecia.com
Olivier Le Friec Media Relations Manager Tel: +33 (0)1 72 36 72 58 Cell: +33 (0)6 76 87 30 17 [email protected]
Investor Relations Tel: +33 (0)1 72 36 75 70 Cell: +33 (0)6 64 64 61 29 [email protected]
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.