Europe: Faurecia increases dividends on higher profit image

Faurecia SA, Europe’s biggest car interior supplier, has announced it would move to increase the annual dividends after its second-half profit soared by 29 percent thanks to increased demand from the Asian and European regions.

The Nanterre, France-based Faurecia announced in a recent statement that its operating income climbed from 282 million euros a year earlier to 363 million euros ($410 million) –with earnings above the 348 million-euro average consensus of analysts polled by Bloomberg. Now the company has opted to increase the dividends by 17 percent over the same period a year ago to 35 cents a share. French carmaker PSA Peugeot Citroen owns 51 percent of the global auto supplier as Faurecia expands outside its core region to shed reliance on Europe. On the old continent the industrywide auto market saw in 2013 sales reaching a two-decade low and are now very slowly on the path to revival. Since last November the auto supplier outlined a strategy to double the China-sourced revenue, boosting the figure to at least 4 billion euros in the four years through 2018.

Faurecia stock climbed as much as 3.3 percent and was up 2.5 percent at 37.95 euros today with the company’s shares, level at their highest price since December 2007, up 23 percent so far in 2015 – valuing the manufacturer at 4.7 billion euros. Faurecia’s second half revenue has grown 7.1 percent to 9.5 billion euros, with operating income, or earnings excluding interest, taxes, one-time items and some financial instruments, now at 3.6 percent of sales. Full-year profit jumped 25 percent to 673 million euros and sales surged above 20 % in China and 7 % in Europe. Chief Executive Officer Yann Delabriere announced that rising demand came from initial orders for new technology in emissions control, energy recovery and composite tailgates.

Via Bloomberg