Bulletin: Forvia?s Ability To Boost Profitability In 2025 Is Ever More Crucial After Its Profit Warning

This report does not constitute a rating action. PARIS (S&P Global Ratings) Sept. 30, 2024--The rating trajectory for French auto parts supplier Forvia (BB/Negative/--) hinges on the group?s ability to improve profitability next year, after it revised down its sales and operating margin guidance for the full year 2024 due to slower global automotive production than anticipated, said S&P Global Ratings today. In our updated base case, we nevertheless still anticipate an increase in our adjusted EBITDA margin for the group to 8.3% in 2025 from 7.4% in 2024, thanks to lower restructuring and one-off costs, as well as higher savings and synergies from the Hella integration and EU-Forward plan. But we believe that any further deterioration in market conditions

...September 30, 2024 This report does not constitute a rating action. PARIS (S&P Global Ratings) Sept. 30, 2024--The rating trajectory for French auto parts supplier Forvia (##/Negative/--) hinges on the group's ability to improve profitability next year, after it revised down its sales and operating margin guidance for the full year 2024 due to slower global automotive production than anticipated, said S&P Global Ratings today. In our updated base case, we nevertheless still anticipate an increase in our adjusted EBITDA margin for the group to 8.3% in 2025 from 7.4% in 2024, thanks to lower restructuring and one- off costs, as well as higher savings and synergies from the Hella integration and EU-Forward plan. But we believe that any further deterioration in market conditions or other operating setbacks would pressure our rating on Forvia, which we reflect in our negative outlook (See "Forvia Outlook Revised To Negative On Slower Improvement In Profitability; '##' Ratings Affirmed," published...

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