PARIS -- Faurecia said a hit to sales from the monthlong strike at General Motors had ratcheted up in October, following a third quarter in which revenues missed forecasts.
The GM strike over pay and job security, which began late Sept. 15, cost Faurecia 23 million euros ($25.5 million) in the July to September quarter, finance chief Michel Favre told a conference call on Thursday.
The hit could reach 40 million to 45 million euros ($44.4 million to $50 million) in October, he said.
GM and the UAW said on Wednesday they had reached a tentative deal for a new four-year labor deal, opening the door to an end to the strike, but it still needs to be ratified by UAW members, which could take two weeks.
Faurecia kept its 2019 guidance for sales growth to outperform the broader market by 150-350 basis points, based on constant exchange rates and excluding the impact of its takeover of Clarion.
It is also targeting an increase in its operating income and an operating margin of at least 7 percent for 2019, even though it is now banking on a 6 percent drop in light vehicle production in 2019, versus the 4 percent fall expected previously.
Faurecia said third-quarter sales had risen by 4.3 percent from a year earlier to 4.185 billion euros. They were down 3.7 percent at constant exchange rates and excluding the Clarion acquisition.
"Third-quarter sales were slightly below expectations as the drop in seating sales is bigger than expected," analysts at Jefferies said in a note.
Faurecia ranks No. 9 on the Automotive News list of the top 100 global suppliers with 2018 sales to automakers of $20.66 billion.
