Faurecia cancels dividend to save cash amid Europe slump

AUTOMOTIVE NEWS

Published: February 19, 2013 12:38 pm ET
Updated: February 19, 2013 12:41 pm ET

Related to this story

Topics Automotive, Injection Molding

PARIS -- Faurecia SA cancelled its dividend for 2012 to conserve cash with auto demand in its home region set to decline.

Faurecia forecast neutral cash flow in 2013 before accounting for restructuring expenses of 120 million euros ($161 million) to 140 million euros, the French parts supplier said Feb. 2. Operating profit is targeted to rise this year on lower costs in Europe and higher sales in North America.

"The action plan we have under way to offset the ongoing drop in European vehicle production and focus on cash generation will enable us to see an improvement in our performance," CEO Yann Delabriere said in a statement.

Faurecia, 57-percent-owned by struggling PSA/Peugeot-Citroen, plans to cut about 3,000 jobs in its home region, or 7.5 percent of the work force, by the end of this year. Like its ailing parent company, the part-maker is retrenching, with European auto demand poised to fall for the sixth straight year in 2013.

Faurecia said vehicle sales in Europe may decline by 4-5 percent this year. Europe's car market is forecast to drop to 12.3 million vehicles in 2013, 23 percent below the pre-2008 financial crisis peak, IHS Automotive estimates.


Comments

Faurecia cancels dividend to save cash amid Europe slump

AUTOMOTIVE NEWS

Published: February 19, 2013 12:38 pm ET
Updated: February 19, 2013 12:41 pm ET

Post Your Comments


Back to story


More stories

Image

Mission Plastics brings new automated work cell on line

August 26, 2014 4:17 pm ET

Custom injection molder Mission Plastics Inc. and a customer have created a $1.5-million automated work cell for a medical diagnostics product.    More

Image

Sonoco buys Germany's Weidenhammer, plans for thin-walled packaging growth

August 25, 2014 1:41 pm ET

Sonoco Products Co.'s acquisition of Weidenhammer Packaging Group GmbH of Germany includes plastic packaging technology that the company is targeting ...    More

Image

New contract for JCI workers heads off potential strike in Ontario

August 25, 2014 3:17 pm ET

About 300 unionized workers at a Johnson Controls Inc. interiors plant in Ontario ratified a new three-year contract, heading off a potential strike...    More

Image

A123 Systems re-energizes its future

August 25, 2014 10:40 am ET

Battery maker A123 Systems LLC has new leadership and a new strategy expected to help the company generate just above a net zero cash flow on revenue ...    More

Image

Making the most of complexity

August 22, 2014 1:02 pm ET

In the global market for injection molded parts, custom molders have tried a million different ways to differentiate themselves from the pack. Make th...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events