In the 2nd half (H2) of 2020, thanks to good preparation for production restart as well as resilience actions implemented since the beginning of the corona crisis, automotive equipment supplier Faurecia SA, Nanterre/France, overachieved all its financial targets. This was particularly true for cash generation, which offset the consumption of H1/2020 and contributed to significant debt reduction. This was reflected in a new record order intake of €26 billion in 2020. This leads to a combined amount of €72 billion over the last 3 years (2018-2020), representing continued market share gains.
H1/2020 was strongly impacted by the globalization of Covid-19 that heavily impacted the automotive industry and all sectors of the economy. Temporary shutdown of most of its customers’ production sites forced the company to stop production in a large number of its sites during the period.
In the 1st quarter (Q1) of the year, worldwide automotive production fell by 22% to 17.2 million vehicles, mostly impacted by China, and in the 2nd quarter it fell by 46% to 11.5 million vehicles, mostly impacted by Europe and North America, while China was restarting.
In H2/2020, Faurecia’s sales amounted to €8.5 billion, down 3.5% on an organic basis vs. a drop of 0.3% in worldwide automotive production growth. Restated for the unfavorable geographic mix impact, sales underperformed the market, mostly reflecting lower performance of the Interiors segment in Europe and the Clean Mobility segment for commercial vehicles in Europe and North America. Operating income during H2 amounted to €520 million or 6.1% of sales, a high recovery after a loss of €114 million in H1/2020.
In financial year (FY) 2020 sales amounted to almost €14.7 billion, down 17.5% on a reported basis and down 19.6% on an organic basis. Currency negative effect amounted to €373 million or -2.1% of sales. EBITDA stood at almost €1.7 billion (2019: €2.4 billion).