Faurecia SA (EO), Europe’s largest maker of car interiors, said first-quarter revenue rose 3.4 percent on increasing sales in Asia and the beginning of a recovery in its home region’s automotive market.
Consolidated sales in the first three months of the year increased to 4.52 billion euros ($6.25 billion) from 4.37 billion euros a year earlier, the Nanterre, France-based company said in a statement today.
Faurecia, 52 percent owned by PSA Peugeot Citroen (UG), is expanding in Asia and North America to ease dependence on Europe, where industrywide car sales are starting to pick up after six years of decline. The manufacturer set a target in November for operating profit to amount to 4.5 percent to 5 percent of sales by 2016, depending on European production levels.
The French manufacturer reiterated its full-year targets of a 2 percent to 4 percent increase in sales, a growth in operating margin between 20 basis points and 50 basis points and a positive net cash flow.
The Faurecia holding is the largest remaining asset that Paris-based Peugeot, Europe’s second-biggest carmaker, could sell to raise cash to fund turnaround efforts.
Faurecia said on Nov. 25 that group sales would probably exceed 21 billion euros in 2016, while net cash-flow would be 300 million euros. Earlier in 2013, it said it planned to double its annual sales in China by 2016 to 3.3 billion euros, representing 15 percent of total revenue.
To contact the reporter on this story: Mathieu Rosemain in Paris at firstname.lastname@example.org