March 27, 2020 / 7:08 AM / 4 months ago

BRIEF-Faurecia Suspends FY 2020 Financial Objectives Due To Coronavirus

March 27 (Reuters) - Faurecia SE:

* FULL-YEAR 2020 FINANCIAL OBJECTIVES THAT FAURECIA ANNOUNCED ON FEBRUARY 17 ARE NO LONGER RELEVANT

* COVID-19: IN TERMS OF FINANCING STRATEGY AND CASH MANAGEMENT, FAURECIA HAS A VERY SOLID BALANCE SHEET WITH NO SIGNIFICANT SHORT-TERM REPAYMENT AND FINANCING AT A LOW COST

* HAS TAKEN ALL NECESSARY MEASURES TO DRASTICALLY REDUCE, IN SHORT TERM, ITS COSTS, DEVELOPMENT EXPENSES AND INVESTMENTS, INCLUDING PUTTING EMPLOYEES IN ALL SITES ON TEMPORARY UNEMPLOYMENT, ACCORDING TO REDUCTION OF ACTIVITY FACED BY SITE

* COVID-19: FOR ITS IMMEDIATE LIQUIDITY NEEDS, FAURECIA HAS A SYNDICATED CREDIT LINE OF EUR 1.2 BILLION (MATURITY JUNE 2024) OF WHICH IT RECENTLY DREW DOWN EUR 600 MILLION IN ANTICIPATION OF DROP IN FACTORING OF RECEIVABLES

* IN TERMS OF FINANCING STRATEGY AND CASH MANAGEMENT, FAURECIA HAS A VERY SOLID BALANCE SHEET WITH NO SIGNIFICANT SHORT-TERM REPAYMENT AND FINANCING AT A LOW COST

* RAMP-UP IS ONGOING IN CHINA, WHERE ALL OF GROUP’S SITES HAVE NOW RESTARTED PRODUCTION, WITH AN AVERAGE CAPACITY UTILIZATION RATE OF AROUND 70% TODAY

* GROUP IS PREPARING SAFE RESTART OF PRODUCTION AS SOON AS THIS IS POSSIBLE, INCLUDING IN ENVIRONMENT WHERE VIRUS IS NOT COMPLETELY ERADICATED

* WILL PRESENT ITS NEW FINANCIAL OBJECTIVES FOR 2020 AS SOON AS THE MACRO-ECONOMIC OUTLOOK FOR THE REST OF THE YEAR IS SUFFICIENTLY CLEAR

* IMPLEMENTED DRASTIC MEASURES TO MANAGE ITS CASH FLOW AS WELL AS A STRICT CONTROL OF EXPENDITURE AND INVESTMENTS DURING THE SLOWDOWN OF ACTIVITY

* FAURECIA HAS SIGNIFICANTLY IMPROVED ITS OPERATIONAL AND FINANCIAL PERFORMANCE IN RECENT YEARS AND WILL BE ABSOLUTELY READY TO ACCOMPANY THE RECOVERY IN AUTOMOTIVE PRODUCTION WHEN IT COMES AND CONTINUE WITH ITS TRANSFORMATION STRATEGY - CEO

* CONFIDENT IN ITS ABILITY TO GET THROUGH THE CRISIS IN OTHER REGIONS

* COVID-19: INCLUDING UNDRAWN EUR 600 MILLION EUROS OF THIS SYNDICATED CREDIT LINE, FAURECIA HAS MORE THAN EUR 900 MILLION EUROS OF CREDIT LINES AVAILABLE WITH OPTIONS TO INCREASE LIQUIDITY FURTHER IN EVENT PANDEMIC EXTENDS BEYOND H1 Source text : bit.ly/2WNdLr2 Further company coverage: (Gdansk Newsroom)

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