Faurecia (EPED.PA), a French automobile parts supplier said its revenue for the third quarter saw an increase by 6.5% on a rebound in the United States sales, but a tentative regain in its Europe’s automobile market.
The company’s sales rose to 4.386 billion euros or 5.61 billion dollars for three months, which ended on September 30. A year earlier, Faurecia’s sales were at 4.117 billion based on the company statement on Thursday.
PSA Peugeot Citroen (PEUP.PA) owns 51% of the auto parts supplier. PSA has emphasized its full-year sales goal and operating margin, including a pledge in achieving a positive net cash flow.
Component and parts sales increased by 9.2% within Europe, 17.4% in Asia, while 2.4% in North America, whereby the maker of dashboards, door panels, exhausts, and exterior parts undershot expectations the previous year.
The analysts’ profit estimate was at 4.269 billion euros, thus, beating it with the company’s revenue announcement. This was based on the company’s own consensus survey among seven estimates.
Faurecia had increased its full-year 2014 goals in July, promising a positive net cash flow, which was between 2% and 4% sales gain, except currency effects. It had also pledged a 0.3 to 0.6 percentage point increase in the company’s operating margin.
However, the Nanterre-based (a suburb in Paris) Faurecia indicated a continuously, deteriorating conditions in South America wherein currencies along with auto demand had been suffering from a sustained slump. Thus, the company pointed out that its regional sales decreased by 17%, while the vehicle production within the region had a 20% decrease.
The company anticipates a negative currency effect on its full-year earnings. The company chief financial officer Michel Favre said Faurecia is anticipating a positive currency impact starting September, but a negative impact for its full-year approximated at about 1%.