Faurecia posts flat third-quarter revenue on currency woes
PARIS (Reuters) -- Faurecia, the French supplier owned by PSA/Peugeot-Citroen, said revenue rose 0.8 percent in the third quarter as currency effects curbed sales growth.
Revenue edged up to 4.12 billion euros ($5.7 billion), Faurecia said in a statement on Tuesday, as a weaker dollar against the euro compounded a lull in North American sales.
European car demand remains at a low level, Chief Financial Officer Michel Favre said. "We consider that the economy is still in a low pattern."
The company said U.S. sales would "continue to grow at a more moderate pace," while reiterating its full-year earnings goals.
Faurecia generates about a quarter of its business with automakers in North America, including $6.1 billion in 2012, according to the Automotive News data center.
The supplier, 57.4 percent-owned by PSA, said it was on track for sales of between 17.8 billion and 18 billion euros this year, as well as improved operating profit and positive cash flow before restructuring charges.
Product sales fell 1.4 percent to 1.65 billion euros in Europe, Faurecia's biggest region, and tumbled 13 percent in North America.
Extended summer plant shutdowns hurt sales as U.S. carmakers prepared production lines for new models.
In Asia, product sales surged 21 percent to 423 million euros, led by a 23 percent gain in China. Faurecia said its business with Ford in the region had more than doubled.
But weakness in the dollar and other currencies reduced the value of overseas sales and trimmed 4 percentage points off revenue growth in the quarter, Faurecia said.
Faurecia ranks No. 7 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $22.5 billion in 2012.Contact Automotive News