(Reuters) – Forvia falls on the stock market Friday after having declared to aim for an improvement in its operating margin in 2025, while expanding the range of its sales forecast compared to last year, the group saying that they want to focus on profitability, the flow flow and the delete rating, after a year 2024 “difficult”.

In Paris, around 10:00 GMT, Forvia lost 20% to 8.69 euros and is on the way to register its worst day on the markets since the title introduction.

The seventh world automobile supplier provides turnover between 26.3 and 27.5 billion euros at constant exchange rates in 2025, against a range of 26.8 to 27.2 billion euros in 2024.

These prospects are based on global automobile production estimated at 89.5 million vehicles this year, said Forvia, and take into account the American customs duties already applied.

Over the entire year, Forvia has recorded a slight growth in its organic sales at 26.97 billion euros, but below the expectations of analysts who tapped on average on 27.74 billion euros, according to LSEG data.

According to Michael Foundoukidis, analyst at Oddo BHF, the annual financial performance of Forvia is nuanced, with an online profit, a free cash flow slightly better than expected, but a net debt greater than its expectations.

“The action could be put under pressure today,” he said in a note, judging the publication likely to feed concerns about the group’s financial health, “like Valeo”.

The French automotive supplier Valeo, which published its annual results Thursday, abandons 13.7% at 9.73 euros, after having announced to anticipate an annual turnover lower than its previous forecast.

China online in sight

Suppliers such as Forvia seek to forge new alliances with more Chinese car manufacturers, in order to circumvent the slowdown in sales with which their Western customers are confronted with, such as Ford, Stellantis, or Volkswagen.

Forvia has declared to plan a drop in sales in European and North American markets, but the group is considering growth in South America and China.

“The development of the activity of Chinese manufacturers is an important element on which we have been working for many years,” said Olivier Durand, Forvia financial director, during a call conference with journalists.

“We have a very diverse presence in the country and quite diverse now in terms of customers. We are the fifth automotive supplier in China,” he added.

Customs duties

Donald Trump’s arrival at the White House has resulted in Washington’s commercial policy of rival as partners. The American president said Wednesday that his administration will impose customs duties of 25% on imports from the European Union.

Like Valeo, who said Thursday that the impact would be fully paid by its customers, Forvia said Friday also plan to pass the costs on hers.

“We have defined what it will take for all of the impact to have gone to our customers and suppliers. Because we cannot do otherwise,” said Olivier Durand.

The financial director, however, added that Forvia, with major production centers in Mexico, was potentially exposed to customs duties aimed at exports from this country, but added to “defined the actions to remedy it”.

(Written by Mara Vîlcu, with Nathan Vifflin and Mathias de Rozario, edited by Augustin Turpin)

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