Faurecia Trims Outlook

Faurecia SA has lowered its midterm financial targets as it completes an acquisition binge and shifts to "controlled growth."

The company, which announced its new target during an investor event in Paris, made no mention of reports last week that PSA Peugeot Citroen might sell its 57% stake in the supplier.

Faurecia now expects sales of about €21 billion, an operating margin of 4.5%-5% and net cash flow of €300 million in 2016. The company's previous forecast was for €22 billion in revenue and an operating margin greater than 5%.

The supplier predicts compound annual growth rates of 10% for its automotive seating business and 5% for its emission control technologies unit over the next three years. It provided no growth forecast for its interiors and exteriors operations.

Faurecia affirms its 2013 outlook for sales of about €18 billion compared with €17.4 billion last year, an operating margin of 3% and net cash flow of €120 million.