Faurecia Business Report FY2007
|in euro millions||FY2007||FY2006||
|Sales||12,660.7||11,648.7||8.7%||See below 1)|
|Operating income||121.1||69.2||75.0%||See below 2)|
|Sales by business segment breakdown|
|Automotive Seating||5.175.4||4,812.8||7.5%||See below 3)|
|Vehicle Interiors||3,545.8||3,458.0||2.5%||See below 4)|
|Exhaust Systems||2,994.4||2,659.4||12.6%||See below 5)|
|Front-end modules||945.1||718.5||31.5%||See below 6)|
1) - The Company's consolidated sales totaled euro 12,660.7 million in 2007, up 8.7% or 7.4% on a like-for-like basis. Currency effects had negative 1.2% impact and changes in group structure had a positive effect of 1.7%. Changes in group structure during 2007 included the integration of the Front End operations acquired from Cadence Innovation France; and the inclusion within the Vehicle Interior business of the Romania-based company Euro Plastic System.
- Europe posted sales of euro 9,573.0 million, representing an increase of 5.2% on a report basis and 1.2% like-for-like excluding catalytic converter monoliths. Growth was fueled by (i) market share gains with BMW; (ii) the launch of new vehicle including Audi A4, Peugeot 308 and Renault Laguna; and (iii) the impact of vehicles launched in 2006 such as Citroen C4 Picasso, Peugeot 207 and Ford Galaxy.
- North America buoyed by a combination of volume growth and market share gains reported sales of euro 1,857.1 million, which presented 14.7% of total sales. On a like-for-like basis and excluding catalytic converter monoliths the year-on-year increase was 42.0%. This strong showing stemmed from (i) new vehicle launches including the Cadillac CTS, Dodge Avenger and new versions of the Chevrolet Malibu, Ford Focus and Jeep Liberty; (ii) the ramp-up of programs launched in 2006 for vehicles including the BMW X5, Chrysler Sebring, Ford Edge and Saturn Aura.
- South America reported sales of euro 281.1 million, up 17.1% or 16.8% like-for-like.
- In Asia sales totaled euro 747.0 million, representing an increase of 20.9% on a reported basis and 23.8% like-for-like excluding catalytic converter monoliths.
2) Operating income for 2007 amounted to euro 121.1 million and represented 1.0% of consolidated sales. The overall increase in operating income was achieved thanks to reduction in North America's operating loss and improved performance by European operations.
3) Automotive Seating reported sales of euro 5,175.4 million, up 7.5% on 2006 or 8.2% at constant exchange rates. Currency effects had a negative 1.2% impact and changes in group structure has positive effect of 2.1%. In Europe, this segment's sales rose 2.6% to euro 4,216.9 million. Outside Europe, growth was particularly strong in both North America, where sales surged 56.1% at constant exchange rates and in Asia which posted a 26.4% rise.
4) Vehicle Interiors sales edged up 2.5% to euro 3,545.8 million in 2007. Like-for-like the increase was 1.6%. In Europe, it contracted 5.3% whereas North America and Asia reported growth of 45.0% and 30.6% respectively, at constant exchange rates. Overall sales for the Interior Modules segment rose 5.4% like-for-like, with negative currency effects of 0.9% exactly offsetting the positive impact of changes in group structure.
5) Exhaust Systems sales for 2007 totaled euro 2,994.4 million, up 16.3% stripping out the negative 3.7% currency impact. Without catalytic converter monoliths the sales figure was euro 1,409.0 million with growth coming in at 14.0% excluding the negative 3.8% currency impact. At constant exchange rates and excluding catalytic converter monoliths, Exhaust Systems sales advanced 14.0% in Europe, 11.8% in North America and 18.8% in Asia. Sales of catalytic converter monoliths climbed 18.5% based on constant exchange rates.
6) Front End sales jumped 31.5% to euro 945.1 million reflecting the integration of operations acquired from Cadence Innovation France. Like-for-like growth was 18.9%, spurred by the start-up of operations in North America and 12.2% higher sales in Europe.
- In February 2007, the Company announced that it delivers its first ever front-end module for the North American market, along with four other modules, for a major Chrysler vehicle platform, which includes both the Dodge Avenger and the Chrysler Sebring. The Company is also supplying the complete seats, cockpits, door panels, center consoles, front-end modules, and exhaust systems for the newly launched 2007 Dodge Avenger.
- In July 2007, the Company has been awarded the contract to manufacture seat structures for a new program by the Volkswagen group. Production for this program will be based at Faurecia's plant in Sﾃ｣o Joﾃ｣o da Madeira, Portugal. These seat structures will supply a new vehicle platform that will include the future Volkswagen Polo and SEAT Ibiza models. Series production at the plant will start-up from March 2008. Pre-series production will start for SEAT from September 2007 followed by a full launch in March 2008. Series production for Volkswagen will start in 2009.
- In early 2007, the Company purchased certain assets of Cadence Innovation in France for 0.4 million euro.
- During 2007, the Company acquired a 50% interest in Romania-based Euro Auto-Plastic Systems srl in the Vehicle Interiors business for 9.4 million euro, as well as the 50% interest held by the Duroplast Group in Faurecia Duroplast Mexico for 18.3 million euro, raising its stake in the company to 100%.
|(in million Euro)||2007||2006||2005|
- The Company holds 28 Research & Development and Design & Development centers.
- Gross research and development costs decreased 2.8% to euro 613.1 million, corresponding to 4.8% of sales. Excluding amounts billable to customers, R&D costs totaled euro 268.6 million or 2.1% of sales in 2007. These reductions reflect enhanced use of the group's program management system for handling program development processes.
Capital expenditure by business segment:
|(in million Euro)||FY2007||FY2006||FY2005|
Capital expenditure by geographic area:
|(in million Euro)||FY2007||FY2006||FY2005|
|Other European Countries||96.8||113.6||125.9|
- In 2007, the Company set up three new companies in China in 2007 窶 Faurecia (Shanghai) Automotive Systems Co Ltd., Faurecia Wuhan Automotive Seating Co Ltd. and Faurecia Qingdao Exhaust Systems Co Ltd 窶 as well as one new company in South Korea, Faurecia Trim Korea Ltd.