The French supplier Faurecia reported a 62% decrease in full-year net income to 140 million euro, due to restructuring changes in Europe.
Faurecia, the world’s biggest maker of exhaust systems and car interiors, is 57.4% owned by PSA/Peugeot-Citroen. The French supplier announced that although its 2012 profits and sales were according to its expectations, the company’s net debt increased more than predicted from 1.22 billion in 2011 to 1.81 billion euro last year.
“The rapid slowdown in automotive production in Europe, particularly in the last two months of the year, led to an increase in inventories — raw materials and supplies,” Faurecia said in a statement.
Faurecia’s full-year sales increased 7.3% to 17.4 billion euro and the company managed to surpass North American light vehicle production growth, where the company’s sales increased 41%. The French supplier’s operating margin fell 3% from 4% in 2011, and its operating profit also dropped to 514 million euro from 651 million euro.
The European debt crisis forced Faurecia to cut 3,00o jobs and to postpone by two years its target to reach a 5% increase in operating margin. On Tuesday, January 15th, the company announced that in 2012 it took 84 million euro of restructuring charges to deal with the European debt crisis and for 2012-2013 the charges would be 190 million euro.