Auto supplier Forvia posts organic sales growth for Q1 on strong N.America (updated)
18/04/2024 07:46
(Adds context in paragraphs 2 and 9, regional results in
paragraphs 5-7, order intake in paragraph 8)
April 18 (Reuters) - European automotive supplier Forvia
FRVIA.PA reported higher organic sales for the first-quarter
on Thursday driven by strong North America, and said new awards
from Chinese carmakers had boosted quarterly orders.
Forvia, which supplies parts to Stellantis STLAM.MI ,
Volkswagen VOWG_p.DE and Ford F.N , and is also active in
China, is affected by falling auto demand and competition from
Chinese manufacturers.
The group, born from Faurecia's takeover of Hella HLE.DE
in 2022, reported sales of 6.53 billion euros ($6.98 billion)
for the first three months of 2024. That was down 1.7% on a
reported basis but up 3.1% organically.
Estimated worldwide automotive production dropped to 21.20
million vehicles in the same period, compared to 21.37 last
year, Forvia said in an earnings statement.
Results in Asia were mixed, however, with Forvia's organic
sales falling 2.5% even as car production grew by 4.3%. That was
due to a year-on-year drop in sales to automaker BYD, which was
not fully offset by a ramp-up with other manufacturers such as
Leap Motor 9863.HK , Chery, and Li Auto 2015.HK , it said.
In Europe, organic sales fell by 0.3%, weighed down by a
"temporary slowdown in electrification", Forvia said. Automotive
production declined by 4.7%.
Organic revenue growth in North America was 6.8%, mainly
driven by higher sales in the seating business, while auto
production increased by 1.4%.
Forvia recorded 6.5 billion euros worth of new orders in the
quarter, more than half of which came from Asia on the back of
new deals with Chinese automakers.
Last week, it announced a new partnership with Chery to
develop sustainable cockpit systems and modules using
low-emission materials and processes.
($1 = 0.9361 euros)
(Reporting by Nathan Vifflin in Gdansk; editing by Milla Nissi)
((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))