Faurecia sees healthy business growth in Asia during 2013

Faurecia, the world’s sixth largest automotive supplier, earned more business in Asia during 2013 than the previous year. Asia accounted for 13 percent of Faurecia’s product sales last year, which is a 3 percentage point increase over 2012. In Asia, Faurecia’s product sales reached €1.71 billion, compared to €1.39 billion in 2012, up 24.3 percent while automotive production grew 5 percent. Sales in China climbed to €1.39 billion. This 27.7 percent increase is nearly double the growth of the Chinese automobile market (14 percent). Product sales in Asia rose 26.3 percent during the second half of the year. Sales outside Europe stood 46 percent of the supplier’s total revenue of €18 billion or around Rs 150,000 crore in 2013. Product sales (delivery of parts and components to automakers) totaled €13.69 billion, up 3.9 percent from €13.30 billion in 2012.

The business group with the most dynamic growth at Faurecia was emissions control technologies, where product sales totaled €6.4 billion, up 7.3 percent driven by growth in Asia (up 22 percent) and the commercial vehicle segment (up 17 percent).

Faurecia reinforced the diversification of its customer portfolio, posting substantial growth with Nissan, Daimler and Ford. The American OEM has consolidated its position as Faurecia’s second largest customer with 15 percent of product sales. Business for commercial vehicles rose 17 percent over the previous year.

Faurecia, which has seen some tough times, saw recovery in its financial health last year. Working capital requirements of the company improved by €364 million, fully recovering from the 2012 negative swing.

At the end of 2013, the Group’s net financial debt came to €1.52 billion versus €1.81 billion at end-2012. The debt reduction of €290 million has been accelerated by the early conversion, in December 2013, of the convertible bond issued in November 2009.

In 2014, Faurecia expects global automotive production to grow by 3 percent, with Europe between 0 and 2 percent, North America up 3 percent, China up 7 percent and South America down at least 4 percent.

Photograph: Faurecia’s India Tech Centre in Pune.