French automotive supplier Faurecia cuts 2021 financial guidance

The company now forecast 2021 sales of between 15-15.5 billion euros and an operating profit margin of 5.5%, compared to a previous target of sales at 15.5 billion euros

French automotive supplier Faurecia cut its guidance for the 2021 financial year, citing a drop in European automotive production, difficulties to adapt to stop-and-go generated costs, and one-off costs in the United States. 

The company now forecast 2021 sales of between 15-15.5 billion euros ($16.92 to $17.49 billion) and an operating profit margin of 5.5%, compared to a previous target of sales at 15.5 billion euros and a 6-6.2 percent margin. 

The cut also heavily impacted its net cash flow target, which Faurecia now forecast at "more than 300 million euros", down from a previously communicated 500 million euros target.