Forvia Sees Smaller-Than-Expected Sales Drop; China Business Weakens
Forvia’s Half-Year Financial Performance and Regional Analysis
July 31 (Reuters) - French car parts supplier Forvia reported a smaller-than-expected drop in its half-year sales on Friday, even as an unfavourable customer mix weighed on its China business.
Overall Sales Performance
Sales fell 4.3% to €10.51 billion ($12.09 billion) in the first half of the year, compared with analysts' €10.30 billion estimate in a company-provided consensus.
Impact of Currency and Global Automotive Trends
Excluding currency effects, they fell 1.9%, underperforming against a 1% decline in global automotive production forecast by S&P Global Mobility.
Regional Breakdown: China
Forvia's sales in China declined by 19.3% in the same period.
Key Contributors and Segment Analysis
"Electronics and Clarion were key contributors to sales performance in H1 while Seating was affected by an unfavorable customer mix in China," Forvia said in a statement.
Profitability and Financial Position
Operating Margin Improvement
The company, however, improved its operating margin to 6%, while analysts had expected 5.8%, and reduced its net debt to €5.5 billion versus a consensus of €5.9 billion.
Financial Guidance
Outlook for 2026
Forvia also confirmed its financial guidance for 2026.
($1 = 0.8690 euros)
(Reporting by Mathias de Rozario in Gdansk and Gilles Guillaume in Paris, editing by Milla Nissi-Prussak)
