Third-quarter 2023 sales
Maintaining focus on cash generation while accelerating deleveraging through:
- timely completion of the €1bn disposal program
- launch of an additional €1bn disposal program
ORGANIC GROWTH OF +10.7%, REFLECTING ROBUST OUTPERFORMANCE IN ALL BUSINESS GROUPS AND REGIONS
- Global outperformance of 700bps, driven by outperformance in China of 1,210bps
ROBUST ORDER INTAKE IN Q3
- Nine-month order intake amounted to €22 billion, with average profitability above POWER25 objectives
- Selectivity in order intake allows significant reduction in upfront expenses
COMPLETION OF THE €1BN DISPOSAL PROGRAM
- All remaining deals to be closed by end 2023 were timely closed, leading to more than €1 billion of cash proceeds, in line with the objective
LAUNCH OF AN ADDITIONAL €1BN DISPOSAL PROGRAM TO ACCELERATE DELEVERAGING BEYOND THE POWER25 OBJECTIVE
- The recently-announced divestment by HELLA of its 50% stake in BHTC is the first transaction of this new program
FY 2023 GUIDANCE CONFIRMED
- Sales between €26.5 billion and €27.5 billion,
- Operating margin between 5.2% and 6.2% of sales,
- Net cash flow > 1.5% of sales,
- Net debt/Adj. EBITDA ratio between 2.0x and 2.2x at December 31, 2023.
The third quarter marked a new step towards FORVIA’s POWER25 objectives. The Group maintained strong organic growth and outperformed automotive production across all Business Groups and Regions, in an environment that remains volatile and characterized by new risks, such as the evolution of the UAW strike in the US that started in September. Our order intake is robust and continues to support the Group’s future profitability growth and cash generation. During the quarter, we have successfully completed our one-billion euros asset disposal program with the closing of the three remaining transactions. In a context of persistent inflation and high interest rates, we announce today the launch of an additional one-billion euros disposal program to accelerate the reduction of our debt and financial expenses. This new program will further strengthen and simplify our portfolio and, along with continuous improvement in cash flow generation from operations, accelerate the Group’s deleveraging beyond the POWER25 objective.
Download the press release below.