Compagnie Plastic Omnium: Very Strong Revenue Growth over the 1st Quarter of 2017
April 25 2017 - 1:30AM
Business Wire
Regulatory News:
For the 1st quarter of 2017, economic sales1 reported by
Compagnie Plastic Omnium (Paris:POM) amounted to €2,039.4 million,
up 32.8% compared with the 1st quarter of 2016. Consolidated
sales2, excluding joint ventures, rose by 36.0%.
This very strong growth is the result of:
- organic growth of 16.8% in the
automotive business, which outperformedglobal automotive production
by 10.9 points;
- the exterior systems acquired on July
31, 2016.
In € millions, by business segment
1st Quarter Change
Change -constantexchange rates&
perimeter
2016 2017
Automotive 1,445.7 1,957.1 +35.4%
+16.8% Environment 90.5 82.2 -9.1%
+9.3%
Economic revenue1 1,536.2
2,039.4 +32.8% +16.4% Joint
ventures 255.3 296.9 +16.3% +18.0%
Consolidated revenue2 1,280.9
1,742.5 +36.0% +16.1%
In €
millions and % of sales, by region
1st Quarter
Change
Change -constantexchange rates&
perimeter
2016 2017
Europe/Africa 841.4 1,126.4 +33.9% +8.2% 55%
55% North America 405.1 523.5 +29.2%
+25.7% 26% 26%
South America 33.4 62.4 +86.6% +31.7% 2% 3%
Asia 256.2 327.1 +27.7% +26.3%
17% 16%
Economic
revenue1 1,536.2 2,039.4 +32.8%
+16.4% 100% 100%
Joint ventures 255.3 296.9
+16.3% +18.0%
Consolidated revenue2
1,280.9 1,742.5 +36.0% +16.1%
100% 100%
35.4% growth in the Automotive business
during the 1st
quarter
Over the 1st quarter of 2017, Automotive sales1 for Plastic
Omnium amounted to €1,957.1 million, up 35.4%.
The figure includes around €251.6 million of revenue from the
exteriors systems business acquired in July 2016.
Over the 1st quarter of 2017, revenue grew by 16.8% at constant
scope and exchange rates. Growth in automotive production was 5.9%
over the period. Outperformance therefore came to 10.9 points and
resulted from:
- the Group's ability to land new orders
by way of a sustained investment program, specifically in North
America and in Asia;
- strong positioning in the SUV segment
(42% of Plastic Omnium sales versus 30% for worldwide automotive
production); SUVs, now capturing the core of growth from present
and future automotive production;
- the continued success of innovative
products (tailgates, spoilers, SCR and fuel systems for hybrid
engines).
Business was robust in all geographic areas.
- In Europe, growth was driven by the
success of SUVs with the commissioning of the plant in Liverpool,
England, for the Jaguar Land Rover Group, and by the ramp-up of the
Peugeot 3008 and 5008 models in France.
- In North America, new production
capacities (two plants commissioned in 2015 in the United States,
plus two plants in Mexico in 2016), combined with the forecast
growth of SCR emissions control systems for diesel vehicles,
resulted in predicted high growth in business.
- Growth in Asia is driven by Japan,
India and China. In China, after a hike of 30.8% in 2016, Plastic
Omnium again recorded high growth of 27.3% over the 1st quarter of
2017, and increased plant utilization levels at its 26 Chinese
factories in a Chinese market that in 2017 will account for 26.5
million vehicles, i.e. 29% of global production. The Group is
growing its presence with local Chinese manufacturers, which by the
year 2021 will account for 30% of Plastic Omnium's revenue in
China, versus 15% in 2017.
A strong uptrend in growth at Plastic
Omnium Environment
Business is now fully focused on products and services to
optimize waste management after the disposals of non-core
activities in mid-2016.
After a second half-year 2016 up 4.2%, growth over the 1st
quarter of 2017 accelerated to reach 9.3% at constant scope and
exchange rates.
Major milestones in a profitable and
independent growth strategy
The increasingly restrictive regulatory framework is working in
favor of Plastic Omnium's product offering:
- controlled growth over the next four
years in SCR systems fitted to diesel vehicles;
- demand and growth drivers for hybrid
vehicles;
- a growing need for more lightweight and
aerodynamic vehicles in order to reduce CO2 emissions and extend
the driving range of electric vehicles.
In this context, over the 1st quarter of 2017, Plastic Omnium
has proven its ability to outperform worldwide automotive
production by at least 5 points between now and the year 2020 to
achieve revenue of €9.5 billion by that time:
- new orders: confirmation of a
breakthrough with premium clients calling for exterior body parts
and fuel systems for the new Jaguar Land Rover Nitra plant in
Slovakia, and for exterior parts for the Class S Mercedes and Audi
A6 in Germany, plus the renewal of the fuel systems contract for
the Ford F-150 in the United States;
- new clients requiring all body parts
for new all-electric vehicles in California and China;
- acceleration of R&D:
- the start-up of work on a new advanced
research center working on new energies in Brussels, Belgium,
- the launch of the construction of an
R&D center and test laboratory for Asia, based in Wuhan,
China,
- the commissioning of an engineering and
calculation center in Pune, India,
- further to the creation of Ξ-POCellTech
in 2016 in the field of hydrogen fuel cells, Plastic Omnium has
joined the steering committee of the Hydrogen Council, which brings
together the leading global groups involved with the development of
the use of hydrogen.
Furthermore, on March 31, 2017, the Group finalized the
definitive disposal of a section of activities purchased end-July
2016 for a enterprise value of €200 million.
The disposal to a German group of business related to heavy
truck composites should be completed during the 2nd quarter of
2017.
Outlook for the
1st half-year of 2017
Results for the 1st half-year of 2017, published on July 21,
2017, will post high growth in revenue, which should be in excess
of €4 billion. Operating income will reflect the continuous
improvement in industrial performance combined with the initial
effects of streamlining operations with acquired businesses. Net
profit will show strong growth.
Calendar
April 27, 2017 Shareholders’ Meeting –
Pavillon Gabriel, Paris, 5 pm May 5, 2017 Dividend payment date,
set at €0.49 July 21, 2017 Half-year results for 2017
1. Economic sales are the consolidated sales plus a proportional
share of sales from the Group’s consolidated joint ventures. The
figure reflects the operational and managerial realities of the
Group.
2. Consolidated revenue, pursuant to IFRS Standards 10-11-12,
does not include the share of joint ventures, which are
consolidated using the equity method.
Plastic Omnium is the world leader in automotive exterior
components and modules, automotive fuel systems, and waste
container solutions for local authorities and companies. The Group
and its joint ventures employ 33,000 people in 128 plants, 23
R&D Centers and 31 countries worldwide, supplying 70 carmakers
. Plastic Omnium is listed on Euronext Paris, compartment A. It is
eligible for the Deferred Settlement Service (SRD) and is part of
the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170424006371/en/
Plastic OmniumFinancial informationTel.: +33 (0)1 40 87 64 49,
Fax: +33 (0)1 40 87 96 62investor.relations@plasticomnium.com
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jun 2024 to Jul 2024
Polymet Mining (TSX:POM)
Historical Stock Chart
From Jul 2023 to Jul 2024