(Reuters) – Forvia, the automotive supplier born out of Faurecia’s takeover of its German rival Hella, raised its sales forecast for the year on Friday.
The group now expects full-year sales of between 24.5 and 25.5 billion euros, citing a positive currency effect of 272 million euros.
Forvia also raised its estimate of global light vehicle production by 3 million to 77 million.
He had previously forecast annual sales of between 23 and 24 billion euros.
Faurecia, which sealed the takeover of German automotive lighting specialist Hella in January, now equips cars under the Forvia name and should become the world’s seventh largest automotive supplier.
The combined entity sells seats, dashboards and fuel systems to automakers who, after more than two years of pandemic-related disruptions, are facing new supply challenges due to lockdowns in China and Russia’s invasion of Ukraine.
“During the quarter, we outperformed in all of our major geographies: in Europe, where semiconductor availability improved slightly, but also in North America and China, where there was a strong recovery ( …”, Faurecia Chief Executive Patrick Koller said in a statement.
Group sales increased by 92.4% as reported to reach 6.59 billion euros in the third quarter, including a quarterly scope effect of 1.84 billion or 53.6% of the turnover of last year related to the consolidation of Hella.
Faurecia, which is seeking to reduce debt after the Hella acquisition, said in July it expects its divestiture program to be completed by the end of next year.
(Report Juliette Portala; French version Dagmarah Mackos, edited by Kate Entringer)
Copyright © 2022 Thomson Reuters