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

Comar merging with Convergence Packaging

October 21, 2014 5:07 pm ET

A couple of plastic packaging companies owned by private investment firm Graham Partners are merging into a single entity.    More

Image

BASF targets coffee and automotive connoisseurs with new resin grades

October 21, 2014 2:07 pm ET

BASF SE is using polybutylene terephthalate (PBT), which is normally used to manufacture high-end electronics, in a food consumer packaging product.    More

Image

Report: Suspected former Nazi with plastic connection collecting Social Security

October 20, 2014 3:52 pm ET

AKRON, OHIO — A one-time plastics executive in Akron is among dozens of suspected former Nazis who have been collecting U.S. Social Security...    More

Ford shrinks its supplier 'watch list'

October 20, 2014 1:35 pm ET

Ford purchasing chief Hau Thai-Tang says suppliers are starting to invest in additional production capacity because they think the recovery is real.    More

Molder expands in France with new clean room

October 20, 2014 1:30 pm ET

Global Closure Systems (GCS), a global injection molding producer, showed off its new ISO 7 clean room at its Astra Plastique factory in France during...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events