Forvia logo on the company building near Paris
Paris (Reuters) -Forvia reported on Monday of a net loss, starting from the group, of 269 million euros in the first half due to a depreciation of assets of 136 million euros non -cash linked to the co -company of Hydrogen Symbio, shaken by the withdrawal of Stellantis, but confirmed its annual financial objectives.
The automotive supplier, specialized in seats and lighting, had released a net profit last year, part of the group, of 5 million euros. But in mid-July, the automaker Stellantis announced the cessation of its program to develop the technology of hydrogen batteries, which represented more than 80% of the business volume of the Symbio Coentreprise also created with Michelin.
As part of its deleveraging, Forvia priority, “it was decided to reduce the cash consumption of hydrogen -related activities while maintaining their long -term strategic potential,” the group said in a statement. “At the same time, the asset disposal procedures have progressed, the number of eligible assets having been revised upwards and processes for significant transfers being in progress.”
“The context is complicated, we will make transactions when we find conditions that are correct. There may be this year, there may be next year,” added financial director Olivier Durand during a press teleconference.
Forvia, whose sales fell 0.4% in the first half, including exchange effects, on the other hand, saw its operating margin increase from 20 base points to 5.4% and its Cash Flow net double to 418 million euros.
“It is a solid set of results from Forvia in a difficult context, with online sales with consensus, an EBIT 4% higher than consensus and a significantly higher net cash flow, thanks to significantly declining investment expenses,” comments Jefferies in a note.
The group launched a reorganization plan, “Simplify”, to reduce its cost base by 110 million euros by 2028.
Forvia confirmed to target a turnover between 26.3 and 27.5 billion euros over 2025, as well as an operating margin between 5.2% and 6% “taking into account the customs duties set up to date”.
Olivier Durand said that the customs duties agreement announced on Sunday between the United States and the European Union, with a rate of 15% for automotive imports, did not change the 2025 forecasts.
“All other things being equal, this agreement has two advantages: these are customs duties lower than what had been exercised for a few months by the American administration, and if it reduces volatility and uncertainty, it is better for all economic actors,” he said.
(Gilles Guillaume and Mathias de Rozario, with Claude Chendjou, edited by Augustin Turpin)
