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Chinese sales fuel Faurecia's first-quarter sales beat

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Chinese sales fuel Faurecia's first-quarter sales beat 1

(Reuters) -French car parts maker Faurecia forecast robust current-quarter sales growth, after its first-quarter sales beat market expectations on Monday helped by particularly strong performance in China.

The firm, which supplies car seats, dashboards and fuel systems to automakers, posted growth across its divisions, fuelled by Chinese sales which soared 88% – significantly exceeding pre-pandemic levels.

It also reported double-digit organic growth across its seating, interiors and clean mobility businesses.

Faurecia's quarterly sales rose 8.9% to 4.01 billion euros ($4.79 billion) on a reported basis, ahead of the 3.93 billion forecast by analysts.

For the second quarter, the group would deliver "very strong organic sales growth and outperformance, driven by the start of production of new programs," Chief Executive Officer Patrick Koller said in a statement.

The group is planning a gradual ramp up of new programs in its seating division, which makes safety mechanisms and covers for car seats and generates the most revenues.

The group said earlier this year that it aimed for a quick recovery from the coronavirus crisis, fuelled by growth in its seating business in China and North America, and its clean mobility and hydrogen fuel business.

Faurecia confirmed its financial targets for 2021, 2022 and 2025.

($1 = 0.8365 euros)

(Reporting by Sarah Morland and Veronica Snoj in Gdansk; Editing by Muralikumar Anantharaman and Shailesh Kuber)

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