By Jason Chow
PARIS--French car parts maker Faurecia SA (EO.FR) reported a 14%
increase in sales to EUR5.1 billion in the first quarter of this
year, boosted by a lower euro as well as a rebounding European car
market.
The favorable exchange rate was the biggest factor to
turbocharging the Nanterre-based company's revenues. Faurecia,
which makes car parts including seats, transmissions and cockpit
interior systems, said in a statement the lower euro jumpstarted
revenues by 8.3% alone in the first quarter. Stripping out the
effects of currency, sales increased 5.5%, it said.
Similar to many of Europe's industrial companies, the lower euro
is helping revenue growth as sales abroad count more when
translated back into euros. In addition, the long-dormant car
market in the region is showing signs of life as more confident
European consumers have begun to buy cars again.
In Europe, which makes up over 40% of total revenues, Faurecia,
which is majority-owned by France's largest car maker PSA Peugeot
Citroën (UG.FR), said car parts sales increased 6.2% to EUR2.2
billion. Shipments to the Renault-Nissan Alliance increased 19%,
while sales to Ford Motor Co. (F) and Peugeot increased 10% and 7%,
respectively. The company now expects car production in Europe,
excluding Russia, to grow within the range of 3% to 5%, a slight
increase from its previous forecast of 2% to 4%.
In China, the world's largest car market, Faurecia said product
sales grew 8.2% but didn't disclose revenue figures. Revenues in
Asia, of which China comprises over 80% of Faurecia's sales, grew
7.5% to EUR563.9 million. Last month, Faurecia and Chinese car
maker Dongfeng Motor Group signed a joint venture to manufacture
components for Dongfeng vehicles to capture more business with the
local brand of China's second-largest car maker.
Faurecia confirmed on Wednesday its 2015 target for overall
sales growth of 5%, not including the effect of exchange rate, and
an operating profit margin of 4%.
Write to Jason Chow at jason.chow@wsj.com
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