PARIS, July 27 – French car parts group Faurecia said on Monday it expects to return to profit and cash generation in the second half of the year on the back of cost controls, after reporting an operating loss in the first half due to the COVID-19 crisis.
Faurecia targets sales of around 7.6 billion euros ($8.89 billion), an operating margin of around 4.5% of sales and net cash flow of around 600 million euros for the second half of the year, the statement said.
First half sales fell 35.4% at constant scope and exchange rates, while the company reported an operating loss of 114 million euros, which included 20 million euros of one-off items related to the coronavirus crisis.
Global car sales have slumped as measures to contain the pandemic forced production lines to shut and showrooms to close. ($1 = 0.8550 euros) (Reporting by Dominique Vidalon; Editing by Krishna Chandra Eluri)