Faurecia car parts reports switch to profit in first half

22nd July 2010, Comments 0 comments

French car parts maker Faurecia switched into profits in the first half of the year with a net result of 102 million euros (130.2 million dollars) from a loss of 365 million euros at the same time last year.

The company raised sharply its forecast for its performance for the whole year.

French car maker PSA Peugeot Citroen owns 57.4 percent of Faurecia.

The company said that all activities had picked up, and chief executive Yann Delabriere said on French BFM radio: "One can say that we are out of the crisis."

The group has reported losses since 2005 and, in line with other makers of auto parts, was hard hit by the economic downturn, reducing its workforce by 17.0 percent from June 2008 to December 2009.

Operating outcome showed a profit of 216.5 million euros in the second quarter, representing a margin of 3.2 percent, from a loss of 187 million euros 12 months earlier.

In the first six months, sales jumped by 56 percent to 6.826 billion euros, owing largely to the purchase of US company Emcon Technologies which specialises in equipment to control exhaust emissions, and of the German activities of Swedish company Plastal.

On a basis of a comparable asset base, sales rose by 27.0 percent.

© 2010 AFP

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