Forvia shares rises as it unveils tariffs' action plan, outperform market production in Q1

FDJ United

17/04/2025 08:16

** Shares in Forvia FRVIA.PA rise 3.6%, pares gains after rising as much as 10.1%, as the french car parts supplier implements an action plan to mitigate the direct impact of U.S. tariffs on its activities and outperforms its market in Q1

** "The Group is proactively mitigating the impact by securing pass-throughs with its clients, negotiating with its suppliers and adjusting its supply chain," Forvia says in a statement

** It adds its has already reached agreements for almost 50% of its tariff exposure, with the aim of covering all of it

** It says it is working to maximize flexibilization of factories' production costs, to reduce additional fixed costs and to reduce investments

** The group also outperform the global automotive market production, with a 2.6% sales growth at 6.7 billion euros  ($7.61 billion) in Q1 2025, above the expectations, Midcap Partners analyst Julien Thomas says

** "A key point is that the Group is maintaining its guidance for 2025 despite a revision of S&P's production forecasts," he adds

** Shares in Forvia are on track for their best day since February 13

** Up to the previous session's close, shares were down 32.2%​ YTD

($1 = 0.8807 euros)

 (Reporting by Mathias de Rozario in Gdansk)

 ((mathias.derozario@thomsonreuters.com;))