LEVALLOIS, France--(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 outperformed
global automotive production by 10.9 points;
- the exterior systems acquired on July 31, 2016.
|In € millions, by business segment||1st Quarter||Change||
|In € millions and % of sales, by region||1st Quarter||Change||
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.
|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).