PARIS -- Faurecia raised its full-year guidance on profit and cash generation after reporting a stronger first-half performance in Europe.
The French supplier's operating income rose to 490 million euros ($539.2 million), or 5.1 percent of total sales, over the first six months compared with 384 million euros a year ago.
"Faurecia's robust profitability in the first half of 2016 was driven by a strong organic growth in Europe, clearly outperforming automotive production," CEO Patrick Koller said in a statement on Monday.
A profitability breakthrough in North America and robust profitability in Asia also lifted earnings, he said.
Faurecia, which is 47 percent owned by French carmaker PSA Group, said it expected operating margin on total sales of no less than 5 percent, versus its previous guidance of 4.6 to 5 percent.
The company also targeted net cash flow of minimum 300 million euros, compared with its earlier expectation of around 300 million euros.
Faurecia confirmed its guidance on total sales growth in 2016 of 1 percent to 3 percent.
Automakers have been upgrading their European auto market forecasts since the start of the year as the recovery in demand gathers pace.
Faurecia ranks No. 8 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $23 billion in 2015.