Forvia, the entity that groups the automotive suppliers Faurecia and Hella, published on Monday a strong increase in sales in the first quarter of 2023 to 6,640 million euros, driven by a significant increase in sales in an automotive market which gradually recovers. Revenue increased 29% compared to the first quarter of 2022 and “all activities outpaced global market growth,” the group said in a statement. The basis for comparison with the first quarter of 2022 is favorable as the 2023 results benefit from an additional month of consolidation with the German equipment manufacturer Hella, whose integration began in February 2022.
The same is true in the three main regions (Europe, North America and Asia) where Forvia sales performed better than in local markets. “Organic sales have largely outpaced global car production growth,” Faurecia chief executive Patrick Koller was quoted as saying in the press release. Forvia’s sales increased by 17.6%, in a global market where growth was 2.7% in the same period.
The world’s seventh largest automotive supplier is targeting a turnover of €25.2-26.2 billion by 2023 and an operating margin of 5-6%.
The European market has recovered, China will follow
The group, which produces a wide range of equipment (seats, dashboards, electronics, lighting, decontamination), recorded good sales from its seating activity, which represents almost a third of its turnover. Sales rose 22.5% thanks in particular to Europe and China, and their local equipment manufacturers such as BYD. The lighting business also performed well (+22.6%) thanks to “strong demand for high-end lighting solutions and continued growth in shows.”
The group recorded a strong increase in its sales in Europe (+22.3%), “around two thirds are attributable to the Seats and Interiors activities”, according to the press release. In Asia, where the group generates a quarter of its sales (including 75% in China), they increased by 17.6% driven by seating and lighting activities.
Forvia also highlighted another positive sign for the future: Shortage of semiconductors that has hit the industry hard. They tend to decrease, without disappearing completely.
Source: BFM TV
