Nanterre (France), October 11, 2018
THIRD-QUARTER 2018 SALES
STRONG SALES GROWTH OF 8.3%** AND ROBUST OUTPERFORMANCE OF 920bps
CONFIRMED FULL-YEAR GUIDANCE
in €m | Q3 2017* | Q3 2018 | Change** | Automotive production*** |
Sales | 3,789 | 4,014 | +8.3% | -0.9% |
By Business Group
| 1,611 1,174 1,004 | 1,743 1,211 1,061 | +10.3% +6.2% +7.6% | -0.9% -0.9% -0.9% |
By region
| 1,834 984 698 202 72 | 1,858 1,114 807 185 49 | +2.8% +11.3% +16.7% +27.1% n/s | -2.6% +3.2% -2.1% +8.1% n/s |
* The implementation of IFRS15 led to restatements to the 2017 figures as reported in July 2017; a table in appendix indicates 2017 figures restated for this implementation
** At constant currencies
*** Source: IHS forecast September 2018 (vehicles segment in line with CAAM for China)
All definitions are explained at the end of this Press Release, under the section "Definitions of terms used in this document"
STRONG SALES GROWTH** OF 8.3% AND ROBUST OUPERFORMANCE OF 920 BASIS POINTS
CONFIRMED FULL-YEAR GUIDANCE
Patrick KOLLER, CEO of Faurecia declared:
"We delivered strong sales growth in the third quarter and significantly outperformed the market, despite some market headwinds in Europe and Asia.
The strong performance since the beginning of the year and our expectation for the last quarter allow us to fully confirm our full-year guidance, as upgraded in July.
From a medium-term perspective, we are focused on implementing our profitable growth plan, as presented at our Capital Markets Day in May, and are confident in our ability to achieve our 2020 financial targets."
The Board of Directors, under the Chairmanship of Michel de Rosen, met on October 10, 2018 and reviewed the present Press Release.
STRONG SALES GROWTH AT CONSTANT CURRENCIES OF 8.3% IN Q3
Faurecia's sales reached €4,014 million in Q3 2018, up 8.3% excluding a negative currency impact of 2.4% (mostly attributable to the TRY, BRL and ARS).
This growth outperformed worldwide automotive production growth by 920 basis points (-0.9%, source: IHS Automotive September 2018). It included €135 million (or +3.6%) from bolt-ons.
On a reported basis, sales were up 5.9%.
Q3 SALES BY BUSINESS GROUP
Seating (43% of Group sales): Double-digit growth of 10.3% at constant currencies
Sales totaled €1,742.7 million in Q3 2018, compared to €1,611.5 million in Q3 2017. They were up 8.1% on a reported basis and up 10.3% at constant currencies, outperforming by 1,120bps worldwide automotive production growth (-0.9%, source: IHS Automotive September 2018). Sales included €78.3 million from bolt-ons (or 4.9% of Q3 2017 sales), related to JV with Wuling and BYD (consolidated as from July 1).
Out of the 10.3% growth at constant currencies:
North America posted slight decline at constant currencies (-0.9%), as growth in sales to Nissan (Altima) and Ford (Super Duty) was offset by ramp down in sales to Daimler (M-Class).
Interiors (30% of Group sales): Robust growth of 6.2% at constant currencies
Sales totaled €1,210.6 million in Q3 2018, compared to €1,173.6 million in Q3 2017. They were up 3.2% on a reported basis and up 6.2% at constant currencies, outperforming by 710bps worldwide automotive production growth (-0.9%, source: IHS Automotive September 2018). Sales included €40.2 million from bolt-ons (or 3.4% of Q3 2017 sales), related JV with Wuling and Coagent.
Out of the 6.2% growth at constant currencies:
Clean Mobility (27% of Group sales): Robust growth of 7.6% at constant currencies, with double-digit growth in North and South Americas
Sales totaled €1,060.5 million in Q3 2018, compared to €1,003.8 million in Q3 2017. They were up 5.6% on a reported basis and up 7.6% at constant currencies, outperforming by 850bps worldwide automotive production growth (-0.9%, source: IHS Automotive September 2018). Sales included €16.7 million from bolt-ons (or 1.7% of Q3 2017 sales), related to Hug Engineering.
Out of the 7.6% growth at constant currencies:
Q3 SALES BY REGION
Europe (46% of Group sales): Robust outperformance in a tougher environment
Sales totaled €1,857.9 million in Q3 2018, compared to €1,833.9 million in Q3 2017. They were up 1.3% on a reported basis and up 2.8% at constant currencies, outperforming by 540bps automotive production in Europe (incl. Russia) (-2.6%, source: IHS Automotive September 2018). Sales included €16.7 million from bolt-ons (or 0.9% of Q3 2017 sales), related to Hug Engineering.
All three Business Groups contributed to sales growth. Sales were mainly boosted by strong growth in sales to Ford, VW (new complete seats business) and Tata that more than offset declines in sales to PSA, Daimler, Renault-Nissan-Mitsubishi and FCA.
North America (28% of Group sales): Strong growth thanks to SUVs, Light trucks and Commercial vehicles
Sales totaled €1,114.5 million in Q3 2018, compared to €984.1 million in Q3 2017. They were up 13.2% on a reported basis, including a positive currency impact of 1.9% for the first quarter in the year, and were up 11.3% at constant currencies, outperforming by 810bps automotive production in North America (+3.2%, source: IHS Automotive September 2018).
Interiors and Clean Mobility were the main contributors to sales growth, which was mainly boosted by strong growth in sales to FCA, Renault-Nissan-Mitsubishi, Tesla, Ford and Cummins.
Asia (20% of Group sales, incl. China representing 78% of the region's sales i.e. 16% of Group sales): Strong growth driven by Chinese OEMs and market share gain through bolt-ons
Sales totaled €807.2 million in Q3 2018, compared to €697.6 million in Q3 2017. They were up 15.7% on a reported basis and up 16.7% at constant currencies, strongly outperforming automotive production in Asia (-2.1%, source: IHS Automotive September 2018, vehicles segment in line with CAAM for China). Sales in Q3 2018 included €118.5 million from bolt-ons (or 17.0% of last-year's sales), mainly due to the consolidation of the two JVs with Wuling (Interiors and Seating), Coagent and BYD (starting as from July 1).
Sales in China amounted to €628.5m, representing 78% of sales in Asia, and were up by 19.5% at constant currencies (vs. Chinese automotive production growth of -5.4%, source: IHS Automotive September 2018, vehicles segment in line with CAAM for China).
They continued to be driven by sales to Chinese OEMs, which amounted to €202m (2.7x sales in Q3 2017) and represented 32% of sales in China.
South America (5% of Group sales): Strong negative currency effect offset strong double-digit growth at constant currencies
Sales totaled €185.3 million in Q3 2018, compared to €201.7 million in Q3 2017. They were down 8.1% on a reported basis, because of a strong negative currency impact of 35.2% (mainly the BRL and the ARS vs. the euro), but they were up 27.1% at constant currencies, outperforming by 1,900bps automotive production in South America (+8.1%, source: IHS Automotive September 2018).
Seating and Clean Mobility contributed to this strong sales growth, driven by market recovery and increased sales to VW and Ford.
OUTLOOK
Faurecia fully confirms its full-year 2018 guidance, as upgraded in July 2018 along with the H1 2018 results (cf. Press Release dated July 20, 2018):
This takes into account:
The conference call for financial analysts and media will be held today at 8:00am (Paris time).
Dial-in numbers are:
No access code needed
Webcast URL: https://edge.media-server.com/m6/p/m3z3uw98
Calendar
Until October 14, 2018: Faurecia's presence at Paris Mondial de l'Auto
January 2019: Faurecia's presence at Consumer Electronics Show (CES) in Las Vegas
February 18, 2019: Full-year 2018 results announcement (before market hours)
About Faurecia
Founded in 1997, Faurecia has grown to become a major player in the global automotive industry. With 290 sites including 30 R&D centers and 109,000 employees in 35 countries, Faurecia is now a global leader in its three areas of business: automotive seating, interior systems and clean mobility. Faurecia has focused its technology strategy on providing solutions for smart life on board and sustainable mobility. In 2017, the Group posted total sales of €17.0 billion. Faurecia is listed on the Euronext Paris stock exchange and is a component of the CAC Next 20 index. For more information, please visit www.faurecia.com
Contacts | Press Eric FOHLEN-WEILL Head of Media Relations Tel: +33 (0)1 72 36 72 58 eric.fohlen-weill@faurecia.com | Analysts/Investors Marc MAILLET VP Investor Relations Tel: +33 (0)1 72 36 75 70 marc.maillet@faurecia.com |
Definitions of terms used in this document:
Appendices
2017 sales restated for IFRS15 implementation
In 2017, Faurecia had already partly anticipated IFRS15 through the presentation of sales as "Value-added sales", i.e. "Total sales" minus "Monoliths", for which Faurecia operates as an agent
In addition, as from January 1, 2018, with the implementation of IFRS15:
2017 operating income restated for IFRS15 implementation
Q3 2018 - Sales by Business Group and region
9m 2018 - Sales by Business Group and region
Impact from bolt-ons