...December 9, 2021 - The slow and volatile recovery in global automotive production is affecting global auto supplier Faurecia's financial results, with revenue to grow only modestly by about 4% in 2021. The group is also facing some labor shortages in its U.S. seating operations, which will further limit the improvement in S&P Global Ratings-adjusted EBITDA margins, which we forecast at 8%-9% this year. - We anticipate that these headwinds will not fully abate until at least the second half of 2022, while Faurecia is set to close the acquisition of 79.5% of auto supplier Hella's equity in the first quarter for 5.3 billion. We now estimate a slower and more uncertain deleveraging path after acquisition closing, with pro forma funds from operations (FFO) to debt and free operating cash flow (FOCF) to debt remaining below 25% and 10% through 2023. - At the same time, Faurecia still plans to fund its acquisition with a sizable equity component of close to 1.3 billion while disposing of noncore...
