French auto parts maker Faurecia maintained first-half profitability despite a China-led decline in auto production and the loss of seating contracts, the company said on Tuesday, Reuters reads.
Net income rose 1% to 346 million euros ($387 million) as revenue dipped 0.2% to 8.972 billion, Faurecia said.
“The first half of the year was tougher than expected,” Chief Executive Patrick Koller said, citing “significantly lower production volumes” in China.
Sales fell 3.7% at the seating division, Faurecia’s largest, impacted by the end of supply contracts to PSA Group’s Citroen brand in Spain and Daimler in Alabama. PSA is Faurecia’s biggest shareholder with a 46.3% stake.
Faurecia’s first-half operating income edged down 0.4% to 644.8 million euros for an unchanged 7.2% operating margin. Its positive net cash flow rose 3.9% to 257 million.
The company reiterated 2019 guidance including a margin of 7% or more and net cash flow of at least 500 million, assuming a 4% decline in global auto production for the full year.