Faurecia: hit by profit warnings in sector.
(CercleFinance.com) - Despite the optimistic outlook detailed today by Faurecia for its Clean Mobility division, the share of the automotive component supplier has slipped over 3% this morning on the Paris Stock Exchange.
The reason for this is the profit warning made by the group's German competitor Schaeffler, coupled with General Motors' reducing its sales forecasts.
As part of an investor day held in London today, Faurecia has unveiled the long-term outlook for its Clean Mobility division (formerly Faurecia Emissions Control Technologies). By 2030, its "value-added" sales should more than double to over ten billion euros.
However, in Germany, the tone is less promising: the family group Schaeffler expects its results will be hit by rising costs as from Q2. These include the R&D costs of products for electric vehicles, which the group cannot offset by price increases - in addition to shortages of certain components. As a result, it has trimmed its FY target for an operating margin from 12/13% to 11/12%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
The reason for this is the profit warning made by the group's German competitor Schaeffler, coupled with General Motors' reducing its sales forecasts.
As part of an investor day held in London today, Faurecia has unveiled the long-term outlook for its Clean Mobility division (formerly Faurecia Emissions Control Technologies). By 2030, its "value-added" sales should more than double to over ten billion euros.
However, in Germany, the tone is less promising: the family group Schaeffler expects its results will be hit by rising costs as from Q2. These include the R&D costs of products for electric vehicles, which the group cannot offset by price increases - in addition to shortages of certain components. As a result, it has trimmed its FY target for an operating margin from 12/13% to 11/12%.
Copyright (c) 2017 CercleFinance.com. All rights reserved.