November 26, 2019 / 6:37 AM / 15 days ago

Car parts maker Faurecia sees record profits in 2022, shares rise

FILE PHOTO: Patrick Koller, Chief Executive Officer of French car parts supplier Faurecia, poses before the company's 2016 annual results presentation in Paris, France, February 9, 2017. REUTERS/Philippe Wojazer

PARIS (Reuters) - French car parts maker Faurecia (EPED.PA) said it was targeting record sales, profits and cash generation in 2022 as a result of its strategy program and the boost from its acquisition of Japanese company Clarion, lifting its shares.

Faurecia, which is 46 percent owned by Peugeot-maker PSA (PEUP.PA), expected annual average sales growth of above 5 percent between 2019-2022, with sales reaching above 20.5 billion euros ($22.60 billion) in 2022.

Faurecia, whose main French rival is Valeo (VLOF.PA), added its operating margin should rise to 8 percent in 2022 versus its target of a 7 percent margin in 2019.

Faurecia’s shares rose 2.6 percent in early session trading.

“Our new Business Group, Faurecia Clarion Electronics, is a strong enabler for the Cockpit of the Future and has a robust roadmap for profitable growth. At the same time, our investment in Fuel Cell Electric Vehicles will accelerate our Zero Emissions strategy and allow us to benefit from rapid powertrain electrification,” said Faurecia chief executive Patrick Koller.

“In 2022, we will see record sales, profitability and cash generation. From a longer term perspective, we are preparing for the next major disruption and target carbon neutrality by 2030,” added Koller.

Reporting by Gilles Guillaume; Editing by Sudip Kar-Gupta

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