Earnings Release • Jul 24, 2013
Earnings Release
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Paris – 24 July 2013
The Board of Directors of Compagnie Plastic Omnium met on 23 July 2013 under the chairmanship of Laurent Burelle to approve the consolidated financial statements for the six months ended 30 June 2013.
In first-half 2013, Plastic Omnium pursued its strategic focus on maintaining its technological leadership and strengthening its footprint in fast-growing countries, which enabled the Company to post a new increase in both sales and earnings:
Revenue growth by region was as follows:
| In €m and as % of revenue | First-Half | ||
|---|---|---|---|
| by region | 2012 | 2013 | Change |
| France | 408.1 | 376.1 | -7.8% |
| 17% | 15% | ||
| Western Europe (excl. France) | 635.3 | 683.0 | +7.5% |
| 27% | 27% | ||
| Eastern Europe | 228.8 | 265.9 | +16.2% |
| 9% | 10% | ||
| North America | 644.6 | 701.9 | +8.9% |
| 27% | 27% | ||
| South America, Africa | 111.4 | 137.8 | +23.7% |
| 5% | 5% | ||
| Asia | 362.2 | 403.2 | +11.3% |
| 15% | 16% | ||
| Consolidated revenue | 2,390.4 | 2,567.9 | +7.4% |
| 100% | 100% |
Investor Relations: Tel.: +33 (0)1 40 87 64 49 Fax: +33 (0)1 40 87 96 62 - [email protected]
Plastic Omnium is the world leader in automotive components and body modules, automotive fuel tanks and systems, and waste container solutions for local communities and companies. The Company employs around 22,000 people and operates 107 plants and 14 R&D centers in 29 countries around the world. Plastic Omnium is listed on the NYSE Euronext Paris stock exchange, Compartment A, is eligible for the Deferred Settlement Service (SRD) and is included in the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).
| (in € millions) | First-Half | First-Half | Change |
|---|---|---|---|
| 2012 | 2013 | in % | |
| Revenue | 2,390.4 | 2,567.9 | +7.4% |
| of which international revenue | 83% | 85% | |
| Operating margin | 169.3 | 190.1 | +12.3% |
| as a % of revenue | 7.1% | 7.4% | |
| EBITDA | 264.2 | 293.0 | +10.9% |
| as a % of revenue | 11.1% | 11.4% | |
| Net profit | 98.0 | 104.3 | +6.4% |
| as a % of revenue | 4.1% | 4.1% | |
| Net profit - Group share | 94.7 | 96.4 | +1.8% |
| as a % of revenue | 4.0% | 3.8% |
| 30 June 2012 30 June 2013 | ||
|---|---|---|
| Net debt at period-end | 464 | 375 |
| Gearing | 60% | 43% |
Revenue for the Automotive businesses totaled €2.34 billion, an increase of 8.2% as reported and 9.4% like-for-like. By comparison, worldwide automobile production grew by 1.4%. This above-market performance was especially pronounced in the second quarter, when Automotive revenue rose by 14.2%, compared with a 3.2% increase in global automobile production.
Growth was sustained in Asia (up 13%), the Americas (11%) and Eastern Europe (14%). Revenue generated outside Western Europe accounted for 64% of the total.
In all, 58 new automotive programs were launched in first-half 2013 – a new record – of which 22 in Western Europe, 17 in Asia and 11 in the Americas. Ten plants are also under construction in the BRICs.
The success of innovative offerings has resulted in the launch of the first entirely thermoplastic tailgate, which weighs 25% or three kilograms less than an equivalent metal part and in the production of the first SCR systems in North America. These systems, which reduce nitrogen oxide emissions, were developed and first marketed in Europe.
At the same time, the Automotive businesses continued and intensified their efforts to reduce production costs and overheads, especially in Western Europe. The Automotive plants in Eisenach, Germany and Herentals, Belgium, both of which produce exterior components, will shut down on 1 August 2013 and their production will be transferred to other Plastic Omnium plants in Europe.
In this environment shaped by sustained demand and disciplined cost management, Plastic Omnium Automotive generated operating margin of €183.6 million, representing 7.8% of revenue. This is an increase of 15.5% compared with the €159 million generated in first-half 2012.
Investor Relations: Tel.: +33 (0)1 40 87 64 49 Fax: +33 (0)1 40 87 96 62 - [email protected]
Plastic Omnium is the world leader in automotive components and body modules, automotive fuel tanks and systems, and waste container solutions for local communities and companies. The Company employs around 22,000 people and operates 107 plants and 14 R&D centers in 29 countries around the world. Plastic Omnium is listed on the NYSE Euronext Paris stock exchange, Compartment A, is eligible for the Deferred Settlement Service (SRD) and is included in the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).
Revenue for Plastic Omnium Environment was stable at €229 million.
Operating margin totaled €6.5 million, representing 2.8% of revenue. In the first six months of 2013, the Division launched a plan to adjust its overheads that will produce results in the second half of the year.
In 2014, the business will return to normal levels of profitability
Non-recurring expenses totaled €15 million and mainly comprised the cost of restructuring programs underway in the Automotive and Environment businesses.
Net profit amounted to €104.3 million, compared with €98 million in first-half 2012, an increase of 6.4%. Net profit – group share came to €96.4 million.
EBITDA increased by 10.9% to €293 million, or 11.4% of revenue.
Funds from operations totaled €272 million (10.6% of revenue) and amply covered capital spending, which rose by 16% to €150 million.
After €47 million in dividends and purchases of treasury stock in first-half 2013, the Company's net debt was reduced to €375 million, compared with €390 million at 31 December 2012 and €464 million at 30 June 2012.
On 21 May 2013, Plastic Omnium carried out an inaugural seven-year, 2.875%, unrated bond issue for a total of €500 million, without covenants. With the operations carried out in 2012, the Company now has debt issues and confirmed credit facilities that cover its medium-term financing needs and provide it with freedom of action in deploying its growth strategy.
In the second half, in an automobile market that will probably trend more favorably with global production expected to increase, Plastic Omnium will launch 49 programs for new vehicles and step up its spending in capital and innovation projects.
Together, these positive elements will enable a new increase in Plastic Omnium's sales and earnings.
Glossary
Operating margin corresponds to earnings from continuing operations before tax, finance costs and other operating income and expenses
EBITDA corresponds to operating before margin, depreciation and amortization.
Free cash flow corresponds to funds from operations less spending on property, plant and equipment and intangible assets, net of divestments, plus (or minus) the change in working capital requirement.
Net debt corresponds to long-term debt, short-term bank loans and overdrafts, less loans and other long-term financial assets, cash and cash equivalents.
Plastic Omnium's statutory auditors have conducted a limited review of the interim accounts approved by the Board of Directors on 23 July 2013 and are currently preparing their report on interim financial information.
Investor Relations: Tel.: +33 (0)1 40 87 64 49 Fax: +33 (0)1 40 87 96 62 - [email protected]
Plastic Omnium is the world leader in automotive components and body modules, automotive fuel tanks and systems, and waste container solutions for local communities and companies. The Company employs around 22,000 people and operates 107 plants and 14 R&D centers in 29 countries around the world. Plastic Omnium is listed on the NYSE Euronext Paris stock exchange, Compartment A, is eligible for the Deferred Settlement Service (SRD) and is included in the SBF 120 and CAC Mid 60 indices (ISIN code: FR0000124570).
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