Faurecia forecasts an increase in sales this year, chip crunch expected to ease

Auto parts supplier Faurecia said on Monday that it expected a surge in annual sales and that industry-wide semiconductor shortage would likely ease in the second half of 2022.

The French company, which supplies car seats, dashboards and fuel systems to auto makers, now forecasts full-year sales within the range of EUR 17.5 billion to EUR 18 billion, compared with sales of EUR 15.6 billion in 2021.

Faurecia also said it projected an operating margin within the range of 6% to 7% this year compared with 5.5% in 2021.

The company noted that its 2022 forecast was based on assumption that global automotive production will reach 78.7 million vehicles this year.

Faurecia’s net loss shrank to EUR 79 million in 2021 from EUR 379 million a year ago.

“Our most exciting challenge for 2022 will be the great opportunity to combine our operations and teams with Hella to create a powerful group, which is far more than the sum of the two preexisting companies,” Faurecia’s Chief Executive Officer Patrick Koller said in a statement, cited by Reuters.