The high debt of the device manufacturer Forvia weighs on investors

The high debt of the device manufacturer Forvia weighs on investors

The price fell nearly 9% early in the afternoon this Thursday, November 3rd. Forvia has ruled that for fiscal 2022, no dividend will be paid in 2023, which didn’t please investors. Apparently, those responsible failed to fully convince the analysts during the reportinvestor day the seventh largest automotive supplier in the world. What analysts also didn’t like was the downward revision of 2025 targets. But beyond those announcements, there is a real structural issue as the price is down by…70% year-to-date!

The group that emerged from the takeover of Hella in early 2022 by Faurecia, a former PSA subsidiary, is indeed suffering from high levels of debt. Patrick Koller wants to reduce his “net debt from 8.4 billion euros to 6 billion in 2025”. Forvia’s Managing Director believes this would be representative

Reference: www.challenges.fr

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