PARIS -- Auto supplier Faurecia maintained first-half profitability despite a China-led decline in auto production and the loss of seating contracts, the company said on Tuesday.
Net income rose 1 percent to 346 million euros ($386.5 million) as revenue dipped 0.2 percent to 8.97 billion ($10 billion) Faurecia said.
"The first half of the year was tougher than expected," CEO Patrick Koller said, citing "significantly lower production volumes" in China.
Sales fell 3.7 percent at the seating division, Faurecia's largest, impacted by the end of supply contracts to PSA Group's Citroen brand in Spain and Daimler in Alabama. PSA is Faurecia's biggest shareholder with a 46.3 percent stake.
Faurecia's first-half operating income edged down 0.4 percent to 644.8 million euros ($720.2 million) for an unchanged 7.2 percent operating margin. Its positive net cash flow rose 3.9 percent to 257 million euros ($287 million.)
The company reiterated 2019 guidance including a margin of 7 percent or more and net cash flow of at least 500 million euros ($558.4 million), assuming a 4 percent decline in global auto production for the full year.
The cash-flow and operating performance underscored a "solid set of first-half results," Jefferies analyst Philippe Houchois said. Faurecia's maintained 2019 goals "should be perceived positively in light of Conti's profit warning," he said.
Faurecia ranks No. 9 on the Automotive News list of the top 100 global suppliers with worldwide sales to automakers of $20.67 billion in 2018.