PSA’s Faurecia cuts mid-term goals due to recent acquisitions image

Faurecia, the supplier controlled by PSA/Peugeot-Citroen, announced it has trimmed its mid-term sales and margin goals as it digests several acquisitions.

Faurecia said it would target revenue of 21 billion euros ($28.4 billion) in 2016, a 20 % gain on last year, and an operating margin of 4.5 to 5 %. Faurecia had previously forecast 2016 revenue of 22 billion euros and a margin above 5 %.

“Faurecia is completing a period of transformation after the integration of some significant acquisitions,” the company said in its statement.

Over the past three years, Faurecia has purchased U.S.-based exhaust systems maker Emcon, a former Ford-owned plastic parts factory in Michigan from Visteon as well as supplier Plastal. The pace of acquisitions is likely to slow as Faurecia completes integration of those businesses, the company said. “From 2014 onwards, Faurecia will pursue controlled growth,” the supplier said in the statement.

Faurecia reiterated 2013 goals including an improvement in operating income, a 50 million euro reduction in European fixed costs and a revenue increase to between 17.8 billion and 18 billion euros from last year’s 17.37 billion. They also didn’t mention anything about the rumored sale of the 57.4 % stake held by PSA.

Via Automotive News Europe