Cautious on Ukraine, auto supplier Forvia expects up to 24 billion euros in annual sales
(Reuters) – Forvia, the European car parts maker born from Faurecia’s takeover of German rival Hella, issued its first annual targets on the low end of forecasts, citing caution linked to the war in Ukraine.
Forvia should generate sales of around 23 billion to 24 billion euros ($25 billion to $26 billion) this year with a profit margin of 4%-5%, it said in its first financial guidance since the deal was sealed in January.
Analysts polled by Visible Alpha had on average predicted combined sales of 24 billion euros for 2022 – a 54% jump from Faurecia’s revenues last year – with a profit margin of 6.0%.
Forvia said its guidance was based on cautious estimates on worldwide automotive production, which have been revised down due to global supply disruptions linked to the war in Ukraine and new COVID lockdowns in China.
($1 = 0.9323 euros)
(Reporting by Sarah Morland and Elena Vardon; Editing by Tom Hogue)