Earnings Release • Feb 28, 2013
Earnings Release
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Paris – 28 February 2013
Plastic Omnium reported further increases in revenue and earnings in 2012.
The Board of Directors of Compagnie Plastic Omnium met on 26 February 2013 under the chairmanship of Laurent Burelle to approve the accounts for the year ended 31 December 2012.
| (in € millions) | 2011 | 2012 |
|---|---|---|
| Revenue | 4,220.4 | 4,806.2 |
| Operating margin as a % of revenue |
296.5 7.0% |
335.1 7.0% |
| Net Profit | 171.4 | 181.5 |
| Net profit-group share | 164.7 | 173.4 |
| EBITDA as a % of revenue |
461.0 10.9% |
505.4 10.5% |
| Net debt at 31 December Gearing |
471.0 64% |
389.8 47% |
Revenue for the Automotive business totaled €4.34 billion, an increase of 16.7% as reported and 9.3% like-for-like. By comparison, worldwide automobile production increased by 6.6%.
With a development strategy that is focused on maintaining its technological leadership and strengthening its production base in fast-growing countries (with 17 additional plants brought on stream since 2010), Plastic Omnium consolidated its global leadership positions in exterior automotive components and fuel systems.
Sales in the Americas, Asia and Eastern Europe increased by around 30% and now account for 63% of automotive revenue.
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 21,000 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 Western Europe, Plastic Omnium benefited from its ongoing efforts in product quality and innovation. Led by market share gains (with the Mercedes A and B class, and Toyota Yaris) and contracts to equip new models (the Range Rover Evoque and Volkswagen Up!), the Automotive Division increased its revenue in the region by 1.5%, despite a 7.7% decline in automobile production.
Along with its sustained sales and the ramp-up of new plants, the Automotive business continued to rein in costs and generated a record-high operating margin of €316.3 million (7.3% of revenue) compared with €273.2 million in 2011.
Revenue from the Environment Division rose by 2% at comparable scope of consolidation and exchange rates (excluding the divestment of the signage businesses in France, Germany and Spain) thanks to the success of its underground containers, its waste reduction service offers (incentive-based invoicing) and the development of sales outside Western Europe.
The Division generated operating margin of €18.8 million (4.1% of revenue), compared with €23.3 million (4.7% of revenue) last year, and substantial free cash flow despite a European business environment impacted by budgetary restrictions.
Anticipating that sales will remain weak in Europe, Plastic Omnium announced in late 2012 that it would adjust its European production base by closing the Eisenach plant in Germany, introducing a competitiveness plan at the Saint-Désirat facility in France, and bringing together its fuel system research and development activities at a center in Compiègne, France. Non-recurring items included €42 million in impairment losses and restructuring costs.
Net profit amounted to €181.5 million, compared with €171.4 million in 2011, while earnings per share increased from €3.44 to €3.64.
Funds from operations totaled €474 million (9.9% of revenue) and amply covered €261 million in capital expenditure. Amounting to 5.4% of revenue, these capital projects are intended to increase production capacity in growing regions and drive the development of innovative solutions that reduce vehicle weight, harmful emissions and waste.
Net debt stood at €390 million, representing 47% of equity, compared with 64% at year-end 2011, and 0.8 times EBITDA.
In second-half 2012, the Company began diversifying its sources of financing, which until then was exclusively bank credit facilities, with the issue of Schuldschein and EuroPP private placement notes. The two issues enabled Plastic Omnium to raise €370 million for six years without covenants.
At the Annual Meeting of Shareholders on 25 April 2013, the Board of Directors will recommend a dividend per share of €0.76, an increase of 10% over the previous year. The dividend will be paid as from 3 May 2013, following shareholder approval.
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 21,000 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).
Worldwide automobile production is expected to rise by 1-2% in 2013 to 81 million vehicles.
Plastic Omnium will continue to outpace growth in global automobile production. In 2013, growth in the Automotive business will be driven by the launch of around 100 new programs, of which 20% for innovative equipment (such as tailgates and SCR systems that reduce nitrogen oxide emissions) and 40% in the BRICs. After having acquired all outstanding shares in its bumper operations in India in 2012, Plastic Omnium recently increased its stake in its composite truck component business in China from 60% to 100%.
In the Environment business, sales will be supported by an expanded portfolio of products and services.
Plastic Omnium will step up its investment program (€1.2 billion from 2013 to 2016) to meet growing demand and strengthen its market share around the world.
More detailed financial information is available at www.plasticomnium.com
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 21,000 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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