Faurecia Accelerates Pace of Development in North America
23 February 2000
Faurecia Accelerates Pace of Development in North America
PARIS, Feb. 22 -- The Board of Directors of Faurecia, chaired
by Daniel Dewavrin, met on Monday, February 21, 2000, to approve the 1999
financial statements. During the meeting, Daniel Dewavrin informed the Board
of his decision to step down as Chairman after the Annual General
Shareholders' Meeting of May 22, 2000 and proposed that Pierre Levi should
succeed him in this position.
in EUR millions 1999 1998 % change
Sales 4,261.9 3,937.2 +8.2
Operating income (1) 198.5 196.0 +1.3
Net income 56.2 31.1 +80.7
Earnings per share (in EURO)
(after goodwill amortization
of EURO 3.03 in 1999) 3.94 2.68 +47.0
Cash flow
Capital expenditure 266.2 185.3 244.8
191.8 +8.7 -3.4
(1) After employee profit-sharing payable by French companies.
Highlights of the year included the continued success of the merger
between Ecia and Bertrand Faure and the sharp increase in the pace of business
development in North America, in seating, with the signature of a major
contract with GM, and in exhaust systems with the acquisition of AP Automotive
Systems at the end of the year. These two developments have raised the
proportion of Group sales generated in North America from 3.8% to 12.2% based
on 1999 pro forma figures.
Consolidated sales (excluding APAS) totaled _ 4,261.9 million, up 8.2% on
1998. The Group reaped the benefits of strong performances by French
carmakers, in the shape of a 12.1% increase in sales to these customers.
Operating income rose slightly compared with 1998 to EURO 198.5 million,
representing 4.7% of sales. Second-half operating income totaled
EURO 96.8 million, marking a strong improvement on the EURO 70.0 million
reported in the same period of 1998.
In 1999, operating income was boosted by higher sales coupled with
substantial reductions in purchasing costs. The benefits of these two
favorable trends were partially offset, however, by further significant
reductions in sales prices. Operating income was also charged with start-up
costs at the Group's new plants in the Czech Republic, Brazil, Canada and
other countries, coupled with residual start-up costs at the plants in Poland
and Wales which came on stream in 1998 and reached normal capacity in the
course of 1999.
1999 saw a further increase in research and development costs, reflecting
the Group's marketing successes, including contracts to equip the new
top-of-the-range Renault models, the Audi B6, the Toyota Yaris and GM Epsilon
in Europe. Total research and development spending amounted to
EURO 314.2 million in 1999, representing 7.4% of sales versus 6.0% in 1998.
Net expenses, after deducting costs billed to customers, came to
EURO 190.0 million, up EURO 30 million on 1998.
Most other income statement items improved compared with 1998, driving a
sharp rise in net income to EURO 56.2 million. Earnings per share amounted to
EURO 3.94 after deducting goodwill amortization of EURO 3.03.
At the Annual General Shareholders' Meeting to be held on May 22, 2000,
the Board of Directors will recommend the payment of a dividend of FRF 6 per
share.
Outlook
Based on the business activities achieved since the beginning of the year,
first-half operating income should be at least equal to that for the same
period of 1999, despite the significant number of new program launches and
industrial start-ups.
These new programs and production facilities will support the estimated
75% growth in consolidated sales targeted for the period to 2004.
Faurecia, No. 5 European automotive equipment supplier, designs, develops
and manufactures seating, exhaust systems, vehicle interior modules and
front-ends. Taking into account the acquisition of AP Automotive Systems at
the end of 1999, proforma sales totaled EURO 4.8 billion. The Group has
35,000 employees and 110 facilities in 27 countries.
CONTACT: Group Communications
Phone +33-1-41-22-70-06 - Fax +33 1 41 22 70 10