Forvia trims 2024 outlook on lower auto demand, extra costs in North America
July 24 (Reuters) -European car parts supplier Forvia FRVIA.PA lowered its sales and margin forecasts on Wednesday due to sluggish global auto demand and additional one-off costs in its North American car interior business.
Forvia expects its sales to be at the lower end of its guidance of between 27.5 billion and 28.5 billion euros ($29.8 billion and $30.9 billion) this year. Similarly, its operating margin should come at the bottom end of its 5.6% to 6.4% range.
The outlook is based on the estimated worldwide automotive production of 88.7 million vehicles this year, down 2% compared to 2023, Forvia said in an earnings statement.
"In the first half of the year, the automotive environment was characterized by broadly flat automotive production year-on-year and a slowdown of the pace of electrification in Europe," Forvia said, adding its half-year operating margin was hit by one-off extra costs in the interiors segment in North America due to a problem with a supplier.
Forvia, which supplies parts to Stellantis STLAM.MI, Volkswagen VOWG_p.DE and Ford F.N, and is also active in China, is fighting to recover its margins as the automotive sector grapples with falling auto demand and competition from Chinese manufacturers.
($1 = 0.9219 euros)
Reporting by Nathan Vifflin; editing by Milla Nissi
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