Forvia trims 2024 outlook on lower auto demand, extra costs in North America
24/07/2024 06:30
July 24 (Reuters) - European car parts supplier Forvia
FRVIA.PA lowered its sales and margin forecasts on Wednesday
due to sluggish global auto demand and additional one-off costs
in its North American car interior business.
Forvia expects its sales to be at the lower end of its
guidance of between 27.5 billion and 28.5 billion euros ($29.8
billion and $30.9 billion) this year. Similarly, its operating
margin should come at the bottom end of its 5.6% to 6.4% range.
The outlook is based on the estimated worldwide automotive
production of 88.7 million vehicles this year, down 2% compared
to 2023, Forvia said in an earnings statement.
"In the first half of the year, the automotive environment
was characterized by broadly flat automotive production
year-on-year and a slowdown of the pace of electrification in
Europe," Forvia said, adding its half-year operating margin was
hit by one-off extra costs in the interiors segment in North
America due to a problem with a supplier.
Forvia, which supplies parts to Stellantis STLAM.MI ,
Volkswagen VOWG_p.DE and Ford F.N , and is also active in
China, is fighting to recover its margins as the automotive
sector grapples with falling auto demand and competition from
Chinese manufacturers.
($1 = 0.9219 euros)
(Reporting by Nathan Vifflin; editing by Milla Nissi)
((nathan.vifflin@thomsonreuters.com; +48 58 769 67 13;))