Faurecia, which is Europe’s largest producer of car interiors announced its second-half earnings went up 34% thanks to growing sales in Asia and a welcomed recovery start in the home region.
According to a statement form Nanterre, France-based Faurecia, the company’s operating profit went up to 282 million euros ($384 million) from 211 million euros a year earlier, while revenue surged 1.9 % to 8.76 billion euros.
The manufacturer, 52 % owned by PSA Peugeot Citroen has outlined its expansion plans for Asia and North America, aimed at lowering their dependence on the European market and said it has an operating profit target of 4.5 to 5 % of sales by 2016.
“The main positive surprise comes on the cash front, with net debt reduction higher than what consensus had forecast,” said Thomas Besson, a Paris-based analyst at Kepler Cheuvreux who recommends buying the shares. “The stock should react positively.”
PSA, Europe’s second-biggest carmaker, has the Faurecia holding now as its only big remaining asset – which could be easily sold because of its good performance, aiding the ailing carmaker in securing the cash it needs to restructure.