Faurecia Drops as Debt Exceeds Company’s Forecast: Paris Mover
Faurecia (EO), Europe’s biggest maker of car interiors, fell the most in more than a year in Paris trading after saying debt exceeded its forecast as auto production in the region contracted.
The shares declined as much as 11 percent, the steepest decline since November 2011. Faurecia was down 6.7 percent at 9:48 a.m. local time. The stock fell 25 percent over the last 12 months, valuing the Nanterre, France-based company at about 1.4 billion euros ($1.9 billion).
Net debt rose to 1.81 billion euros as of Dec. 31 from 1.53 billion euros on June 30, Faurecia said yesterday in an earlier- than-scheduled earnings report. The company said that’s higher than it expected, without giving a figure. Auto production in Europe declined 13 percent in November and 18 percent in December, leading to higher inventories and lower receivables, the company said. Natixis had estimated debt of 1.65 billion euros.
Faurecia, 57 percent-owned by PSA Peugeot Citroen (UG), plans to cut about 3,000 jobs in its home region, or 7.5 percent of the workforce, by the end of 2013 as European auto demand is poised to decline for a sixth year. Faurecia is pushing expansion abroad with the goal to boost the share of sales outside Europe to 55 percent in 2016 from 37 percent in 2011.
Net income for the full year plunged 62 percent to 140 million euros, burdened by 84 million euros in restructuring charges. The figure was below the 172 million-euro average of 13 analyst estimates surveyed by Bloomberg.
More than 700,000 shares were traded, 77 percent more than the six-month average trading volume.
To contact the reporter on this story: Mathieu Rosemain in Paris at email@example.com