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France’s Faurecia Aims for Strong, Hydrogen-Fuelled Growth

By February 22, 2021 2   min read  (325 words)

February 22, 2021 |

PARIS, Feb 22 (Reuters) – French car parts maker Faurecia on Monday forecast a quick recovery from the coronavirus crisis, helped by clean mobility and growth in China, as it projected sales reaching close to 25 billion euros ($30.29 billion) by 2025.

The company expects revenues to surpassAdd New 2019 levels by next year, when it predicts an operating margin of 8% from sales of at least 18.5 billion euros.

It posted sales of 14.7 billion euros and a margin of 2.8% in 2020, as the entire industry was hit by the impact of the pandemic.

“Overall, the group will strongly outperform the market over the next five years, and is particularly well-positioned in the fast-growing premium, electric and commercial vehicle segments as well as in China,” CEO Patrick Koller said in a statement issued on Faurecia’s Capital Market Day.

Growth will be fuelled by Faurecia’s seating division, set to double sales in China and North America, and also by its clean mobility and hydrogen business, the group’s finance chief Michel Favre said in a call with analysts.

The company believes hydrogen will be widely available and affordable in 2030 – when Faurecia aims to be carbon neutral – and that it could make up one fifth of world energy demand by 2050.

Faurecia began its transformation in 2016, when it sold its exteriors unit to rival Plastic Omnium, which it aims to challenge in the hydrogen storage market.

Analysts said the results and guidance were encouraging, but the company’s share price lost more than 4% in afternoon trading.

Oddo BHF analyst Michael Foundoukidis said investors may be anticipating selling pressure at the time of Faurecia’s spin-off in the coming weeks, preferring to exit and return in a better position.

Stellantis is set to distribute its participation in Faurecia to its shareholders, which Faurecia said will grow its free float, allowing it to affirm its strategy as an independent company. ($1 = 0.8252 euros) (Reporting by Dominique Vidalon, Kate Entringer and Sarah Morland; editing by Louise Heavens and Barbara Lewis)

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