Half Year 2024 Forvia SE Earnings Call Transcript
Key Points
- Forvia SE (FURCF) posted an organic sales growth of 2.7%, outperforming the market by 290 basis points.
- Operating margin grew by 20 basis points year on year to 5.2% of sales, reflecting margin improvement in all business groups except for a one-off impact in North America.
- The company successfully issued around EUR2 billion of new debt instruments, extending its average debt maturity to 3.6 years.
- Significant progress in the second disposal program, achieving 25% of the EUR1 billion target with the sale of Hug Engineering and Forvia Halla's stake in BHTC.
- Strong order intake driven by Asia, with EUR6 billion made in Asia and significant awards from Chinese OEMs and other global players.
- Worldwide automotive production was broadly stable compared to H1 2023, with a 5% decline in Europe, impacting Forvia SE (FURCF)'s sales.
- The company faced a one-off operating loss of EUR47 million in North America due to a supplier-driven issue, impacting the operating margin by 30 basis points.
- Sales were down by 0.6% on a reported basis due to unfavorable currency impacts and the negative scope effect from the sale of the CVI business.
- The company recorded a breakeven net income, impacted by high European restructuring costs and a nonrecurring expense related to the supplier issue.
- Customer mix in China led to a sales decline with BYD and leading U.S. EV carmakers, affecting the overall performance in the region.
Good morning and welcome to our half year results presentation with all of you to our Chief Financial Officer, who will guide you through our H1 performances. Our presentations include four chapters We will start with H1 2020 for key highlights, followed by H1 2024 financial performance venue outlook.
And finally, the takeaways on chapter one key highlights for H1. I propose to look at the worldwide automotive production and the pace of electrification worldwide automotive production stood at EUR43.6 million light vehicles in H1 24, broadly stable compared to H1 23 have contrasted situations by geography. We have clearly more volumes in China and less in Europe in Europe, excluding Russia, which accounts for 47% of the group's sales production was down 5% at EUR8.4 million, representing around 19% of worldwide production in North America, which accounts for 24% of our sales production was up 1.8% at EUR8.1 million, representing around 19% of worldwide production in China, which represents 19% of our
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