Reuters (Paris) - Faurecia (EPED.PA), the world's biggest maker of car interiors and exhausts, said second-half profit surged 30 percent on a strong recovery in U.S. auto production.
Operating income rose to 311 million euros ($412 million), or 3.9 percent of sales, from a 3.3 percent operating margin a year earlier, the French company said on Wednesday.
"Faurecia has restored solid fundamentals on which it can now rely," Chief Executive Yann Delabriere said in the company statement, targeting 20 billion euros in sales for 2020.
Faurecia, which also makes seats and plastic car body parts for clients including Volkswagen's (VOWG_p.DE) Audi brand, is expanding in the U.S. and Asia. North American sales surged 37 percent as the region's light vehicle production advanced 11 percent in the second half, Faurecia said.
Net income rose 85 percent to 185 million euros on a 15 percent sales increase to 8.04 billion euros.
The profit gain is a welcome boost for parent PSA Peugeot Citroen (PEUP.PA), which controls Faurecia through a 57.4 percent stake and is expected to report significant losses for its core auto division next week.
Faurecia's full-year operating income was 651 million euros, for a 4 percent operating margin. That beat the 620 million euros predicted by analysts and the company's own forecast.
Its negative cash flow of 20 million euros fell short of its 100 million euro positive cash flow goal, given in July.
Profit was helped by a decline in restructuring charges to 56 million euros from 117 million euros in 2010.
For 2012, Faurecia predicted sales between 16.3 billion and 16.7 billion euros, operating income between 610 and 670 million euros and a balanced net cash flow.
Faurecia is targeting an operating margin of 5-6 percent in 2014, with pretax return on capital employed of 25 percent and net debt levels below 50 percent of earnings before interest, tax, depreciation and amortization.
