Faurecia H1 Results Hit by Several Headwinds, Confirms 2022 Guidance; FVE Decreased to EUR 47

No-moat auto parts supplier Faurecia reported a loss of EUR 1.98 per share for the first half 2022, missing FactSet consensus by EUR 0.48 and down EUR 3.28 from the EUR 1.31 from continuing operations reported last year. Production shutdowns on the microchip shortage, China coronavirus lockdowns, higher raw material costs, other inflationary pressures, and problems with a seating program in North America contributed to the shortfall. Even so, because of the acquisition of Hella, revenue jumped 49.3% to EUR 11.6 billion from EUR 7.8 billion reported in the prior year. The top line was 14% higher than FactSet consensus. Excluding the Hella acquisition and favorable currency effect, organic revenue increased 9.0%. The French auto parts vendor discloses revenue only in the first and third quarters while financial statements are published for half- and full-year results.