- Economic revenue: €3,180
million, up by 8.0% (+11.0% at constant exchange rates)
- Consolidated revenue: €2,660
million, up by 7.5% (+10.4% at constant exchange rates)
- Operating margin: €267 million
(10.1% of consolidated revenue), up by 12.7%
- Net profit - Group share: €155
million, up by 9.5%
- EBITDA: €383 million (14.4%
of consolidated revenue), up by 10.5%
- Free cash flow: €92 million
(3.4% of consolidated revenue),
- Net debt: €263 million,
representing 20% of equity and 0.4x EBITDA
Regulatory News:
Laurent Burelle, Chairman and Chief Executive Officer of
Plastic Omnium (Paris:POM), stated:
"Over the first half of 2016, our growth, which hit 11% at
constant exchange rates, accelerated, and we have once again
converted this growth into a more solid increase of our
profitability.
This performance reflects the continued commitment of our 26,000
employees to operational excellence - total quality in development
and production, perfectly-honed logistics. This operational
excellence, combined with a policy of sustained investment to
globalize our industrial footprint and design increasingly
innovative products, enables us to continue to win market share and
to make our development sustainable over the long term. This
strategy is backed by a constantly optimized financial
structure.
Supported by these fundamentals, we are confidently looking
forward to the integration of Faurecia's Exterior Systems business
on July 29, 2016, which will take us to pro forma revenue of around
€7.5 billion for 2016, broaden our industrial presence in Germany,
Spain, Slovakia, Belgium, the United States and South America, and
underpin the diversity of our customer portfolio.
This size significantly increases our capabilities for
innovation and growth. It will allow us to offer manufacturers new
solutions to respond to the technological transformations of the
automotive sector."
First-half 2016 results: growth, improved profitability and
strengthening of our financial structure
The Board of Directors of Compagnie Plastic Omnium met on July
26, 2016 under the Chairmanship of Laurent Burelle, and approved
the consolidated financial statements as at June 30, 2016.
In € millions
First-half 2015
First-half 2016
% change
Economic revenue1 2,945.3
3,179.5 +8.0% Consolidated revenue2
2,474.3 2,660.0
+7.5% Operating margin3
in % of consolidated revenue
237.3
9.6%
267.4
10.1%
+ 12.7%
+ 0.5 pt
Net profit - Group share 141.8
155.3 +9.5% EBITDA4
in % of consolidated revenue
346.9
14.0%
383.3
14.4%
+10.5%+ 0.4 pt Investments 164
174 + 6.1% Free cash
flow5 107 92
-
Net debt6 at 6/30
Net debt to equity ratio
35430% 26320%
--10 pts
Strong growth in the Automotive Division
Compagnie Plastic Omnium’s economic revenue1 amounted to
€3,179.5 million in the first half of 2016, an increase of 8.0% as
reported and 11.0% at constant exchange rates.
In €m, by segment
First-half2015
First-half2016
% change
Like-for-likechange
Automotive 2,753.0
2,992.8 +8.7% +11.9%
Environment 192.3 186.7
-2.9% -2.1%
Economic
revenue1 2,945.3
3,179.5 +8.0%
+11.0% Consolidated revenue2
2,474.3 2,660.0
+7.5%
+10.4%
The economic revenue1 of Plastic Omnium Automotive reached
€2,992.8 million. It rose by 8.7% and by 11.9% at constant
exchange rates, when worldwide automotive production was up by 2.2%
over the first half of 2016, representing a market
outperformance of 9.7 points. This reflects the strength of the
backlog, the commissioning of new production capacities (Mexico,
United Kingdom), and the success of the innovative products
portfolio.
Sales from the Environment Division recovered in the second
quarter, with growth of 2.0% at constant exchange rates. Over the
first half of 2016 as a whole, activity was down by 2.1%, at €186.7
million. Sales momentum is good, and the product and service
offering has been enhanced.
1 ,2,3,4,5,6 The financial aggregates are defined on page 6 of
this press release
A 13.7% rise in revenue in
Europe
In €M and as a % of revenue, bygeographic
region
First-half2015
First-half2016
% change
Like-for-likechange
Europe / Africa 1,558.7 1,742.9 +11.8% +13.7%
53% 55%
North America 804.4 832.3 +3.5% +4.1%
27% 26%
South America 83.3 75.5 -9.3%
+24.7% 3% 2%
Asia 498.9 528.7 +6.0%
+11.7% 17% 17%
Economic revenue1
2,945.3 3,179.5 +8.0% +11.0%
100% 100%
Consolidated revenue2
2,474.3 2,660.0
+7.5%
+10.4%
The increase in sales was driven by Europe and Asia.
In Europe, 33 new programs were launched during the first half
of 2016. Business was particularly strong in France (+10.7%) and
Spain (+11.5%), as well as England (+27.3%, driven at Jaguar Land
Rover by bumpers for the new Jaguar XE and XJ and by bumpers and
tailgates for the new F-Pace SUV in early 2016). The development of
SCR for reducing diesel vehicles emissions is a reality worldwide,
with an increase of 37% over the period, bringing sales to €129
million, two-thirds of which took place in Europe.
Business in Asia rose by 11.7% at constant exchange rates. In
China, which represents sales of €268 million, or 8% of total
revenue, growth accelerated over the first half of 2016. The
increase in activity at constant exchange rates was 14.5%, with
automotive production up by 5.6%. The Group has benefited from high
investment made over the past three years to strengthen the
country's industrial footprint and win market share. The 25 plants
now run by the Group in China (of which 13 plants built between
2013 and 2015) are seeing their loading gradually swell with the
numerous new orders now reaching the production line.
In the rest of Asia, growth was 9.0%, driven by South Korea,
Japan and India.
Sales in North America grew by 7.0% at constant exchange rates
in the second quarter, after being negatively impacted in the first
quarter of 2016 by scheduled production outages in Mexico resulting
from model changes by carmakers. As of the second-half of 2016,
North America will be a major growth area for the Group, with the
commissioning of new capacities in Mexico.
1,2 The financial aggregates are defined on page 6 of this press
release
Results are growing faster than revenue.
The operating margin posted an increase of 12.7% to reach €267.4
million, an all-time high of 10.1% of consolidated revenue.
Operating margin for the Automotive Division amounted to €255.3
million over the first half of 2016, i.e., 10.3% of consolidated
revenue, compared with €226.2 million in the first half of 2015
(i.e., 9.9% of consolidated revenue). The Automotive Division
benefited from a high utilization rate (85%) of its production
capacity worldwide. The improved operating margin was also
supported by the operational excellence of the 88 new programs
launched during the first six months of the year, together with
strict cost control.
Plastic Omnium Environnement’s operating margin rose to €12.1
million, or 6.5% of revenue in the first half of 2016 (compared
with €11.1 million and 5.8% of revenue in the first half of
2015).
In the first half of 2016, Plastic Omnium kept up its efforts
for industrial and organizational efficiency, recording
non-recurring expenses amounting to €33 million (€24 million over
the first half of 2015).
Net income grew by 9.6% to €158 million. It accounted for 6.0%
of revenue. The Group's share of net income came to €155 million,
an increase of 9.5%.
The financial structure has grown stronger
Group EBITDA reached €383.3 million (14.4% of consolidated
revenue) up by 10.5%, and net cash from operations came to €347
million (13.1% of consolidated revenue), an increase of 8.1%.
Committed to a sustained capex program of €2 billion over the
2016-2020 period, the Group invested €174 million over the first
half of 2016, i.e., 6.5% of its consolidated revenue. Plastic
Omnium commissioned an exterior components plant in the United
Kingdom (Warrington-Liverpool) and a front-end module plant in
Mexico (San Jose Chiapa). Four plants are under construction: an
additional two in Mexico, one in China and one in India.
The Group generated free cash flow of €92 million over the first
half of 2016, representing 3.4% of sales.
Net debt amounted to €263 million, down by €5 million compared
with December 31, 2015, after the payment of €61 million in
dividends and the buyback of treasury shares for an amount of €33
million. It now represents 20% of equity and 0.4 x EBITDA.
The new product offering has recorded further
success.
In the first half of 2016, Plastic Omnium recorded further
success with its innovative product offers.
After starting up production of its first carbon fiber part for
BMW in 2015, the Group won an order for a new structural part in
carbon composite, with the first delivery slated for early
2017.
Plastic Omnium has also recently won a contract covering all
exterior components for a fully electric vehicle.
The aerodynamics product offering, contributing to a reduction
in vehicle CO2 emissions, has also been enhanced, notably with a
mobile spoiler for Porsche.
In the field of fuel systems, pre-production for the first
plastic tank for plug-in hybrid vehicles has started in South
Korea. It will equip a Hyundai vehicle by the end of the year. By
the year 2018, seven additional models for three other carmakers in
Asia and Europe will be fitted with this innovation from Plastic
Omnium.
Lastly, placing innovation at the heart of its development
strategy, the Group has recently appointed a Scientific Director, a
newly created position reporting to Executive Management.
Other highlights of the first half of 2016
On March 21, 2016, Compagnie Plastic Omnium canceled 1.1 million
treasury shares acquired between January and March 2016. This
strengthens the control of the majority shareholder Burelle SA,
bringing its interest to 57.01%.
The Group redeemed early the variable share of its 2012
Schuldschein private placement, for an amount of €74 million, and
established new financing of the same type for the amount of €300
million with a longer maturity (7 years) and a fixed interest rate
of 1.48%.
Outlook
Over the whole of 2016, at constant scope, Plastic Omnium will
be driven by the same dynamic as in the first half-year and will
continue its profitable growth generating free cash-flow.
On July 11, 2016, Plastic Omnium received approval from the
European competition authorities to go ahead with the acquisition
of Faurecia’s Exterior Systems business, subject to divestment
commitments. Revenue acquired by Plastic Omnium totals €1.2
billion. This includes €800 million in Germany, where Plastic
Omnium was not previously operating in the exterior systems
production business. The acquisition creates new links with our
customers Audi, Mercedes and Ford, and strengthens ties with
others, most notably Volkswagen, Seat and PSA, as well as BMW and
Fiat Chrysler Automobiles - FCA. Lastly, it increases the size of
Plastic Omnium Auto Exterior by 50%, and adds an R&D center
with 300 employees in Germany to the 1,300 engineers around the
world that are already developing systems for this division that
are lighter, more aerodynamic and more integrated.
The acquisition, immediately accretive, will generate an annual
operating margin of €50 million and, as initially announced, an
additional €70 million in synergies by the year 2019.
Due to be finalized on July 29, 2016, it will be financed from
the Group’s own resources.
The Plastic Omnium Group will as such be strengthened,
generating proforma economic sales around €7.5 billion in 2016, of
which 60% in Europe, 26% in the Americas and 14% in Asia. It will
employ over 32,000 people and run 136 plants and 22 R&D centers
worldwide.
Webcast presentation of the half-year results
The presentation of half-year results, in French with a
simultaneous translation into English, will take place on Wednesday
July 27, 2016 at 11 a.m., Paris time.
It will also be accessible by webcast on the website of Plastic
Omnium and by telephone at:
- France: +33(0)1 72 00 15 10
- United Kingdom: +44 203 043 2440
- Germany: +49 6922 2229
- Spain: +34 914 142 021
- United States: +1 877 887 4163
Access codes:
- French: 72007498#
- English: 55909481#
More detailed financial information can be found on the website,
at www.plasticomnium.com.
Calendar
October 1 - 16, 2016 - Mondial de l’Automobile Paris – Hall 1
stand 222
October 20, 2016 – Revenue from 3rd quarter of 2016
Glossary
(1)
Economic revenue corresponds to
consolidated revenue plus revenue from Group's joint ventures at
the percentage of their share in the Group: BPO, HBPO and YFPO for
Plastic Omnium Automotive. The figure reflects the operational and
managerial realities of the Group.
(2)
The consolidated revenue, in
implementation of IFRS Standards 10-11-12, does not include the
share of joint ventures, which are consolidated by using the equity
method.
(3)
The operating margin corresponds to the
operating results, including the share of the results for companies
which have been consolidated by using the equity method, and the
amortization of intangible assets acquired, before other operating
income and expenses.
(4)
EBITDA corresponds to the operating
margin, which includes the share of the results of associates and
joint ventures before depreciation charges and operating
provisions.
(5)
Free cash flow corresponds to the
operating cash flow, less tangible and intangible investments net
of disposals, taxes and net interest paid +/- variation of the
working capital requirements (cash surplus from operations).
(6)
Net debt includes all of the long-term
borrowings, short-term loans and bank overdrafts, less loans,
marketable debt instruments and other long-term financial assets,
and cash and cash equivalents.
Status of financial statements with respect to the
audit:
At the date of this release, financial statement auditing
procedures have been completed and the statutory auditors' report
has been issued on July 26th,2016.
This press release is published in French and in English. In
case of a discrepancy between these versions, the original version
drafted in French shall prevail.
Plastic Omnium is the world leader of automotive body parts and
modules, as well as the world leader of waste collection containers
for local governments and for businesses. The Group and its joint
ventures have 26,000 employees working in 120 plants and 21 R&D
centres in 30 countries worldwide. Plastic Omnium is listed on
Euronext Paris, Compartment A, is part of the Paris Bourse's
monthly settlement facility (SRD) and of the SBF 120 and CAC Mid 60
indexes (ISIN code: FR0000124570).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160726006389/en/
Compagnie Plastic OmniumFinancial informationTel. : +33 (0)1 40
87 66 78Fax : +33 (0)1 40 87 96
62investor.relations@plasticomnium.com
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