Forvia misses H1 profit target on chip shortage, Ukraine, COVID disruptions

Europe

PARIS — Forvia, the supplier created after Faurecia‘s takeover of lighting maker Hella, fell short of half-year operating profit expectations, affected by global chip shortages, the war in Ukraine and lockdowns in China.

The group, which sealed its takeover of Hella in January, reported an operating profit of 426 million euros ($434.5 million) for the first six months of 2022, corresponding to a margin of 3.7 percent.

Analysts polled by Visible Alpha had on average predicted an operating profit of 436.1 million euros with a 4 percent profit margin.

The combined entity sells seats, dashboards and fuel systems to carmakers which, after two years of disruptions from the coronavirus pandemic, are facing fresh supply delays due to Chinese lockdowns and Russia’s invasion of Ukraine.

“We are confident that the second half will allow us to improve our first half performance and fully confirm our objectives for the year,” Forvia CEO Patrick Koller said in a statement. 

Forvia posted first-half sales of 11.62 billion euros, beating the consensus estimate of 11.02 billion.

Faurecia’s first-half sales in 2021 were 7.8 billion euros, with a margin of 6.6 percent. 

Forvia ranks eighth on the Automotive News Europe list of Top 100 global suppliers, with 2021 sales to automakers of $25.9 billion.

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