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Faurecia SE EO

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Morningstar’s Analysis

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Faurecia Q3 Revenue Takes Chip Crunch Hit; Slight Fair Value Estimate Increase to EUR 58

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat rated French auto parts supplier Faurecia reported third-quarter 2021 revenue of EUR 3.4 billion, representing a 17.6% drop on an as reported basis compared with EUR 4.2 billion reported in the prior year as the chip crisis caused erratic customer production this year while the third quarter of 2020 marked a strong COVID-19 recovery. Faurecia only reports revenue in the first and third quarter. Excluding currency translation, acquisitions, and divestitures, organic revenue declined 11.4%. The year-over-year decrease was 780 basis points better than the 19.2% plunge in third-quarter global light vehicle production.

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Company Profile

Business Description

Excluding the Hella acquisition, Faurecia operates in automotive seating, interior systems, cockpit electronics, and emission control technologies. The company has a global presence, with production facilities in 33 countries, but it has about 60% of its facilities located in high-cost countries. Faurecia's five largest customers by percentage of 2020 revenue are Volkswagen at 21%, Stellantis at 18%, Ford at 13%, the Renault-Nissan-Mitsubishi Alliance at 12%, and General Motors at 5%. Geographically, Europe accounted for 48% of 2020 revenue, followed by North America at 25%, China at 18%, and all other regions at 9%.

Contact
23-27 avenue des Champs-Pierreux
Nanterre, 92000, France
T +33 172367000
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings
Fiscal Year End Dec 31, 2020
Stock Type
Employees 104,739