Continuation of strong organic
growth
Regulatory News:
Plastic Omnium (Paris:POM):
- Sustained organic growthQ3 2016:
+13.4% nine months 2016: +11.8%
- Strong outperformance in comparison
with worldwide automotive productionQ3 2016: +8.4 points nine
months 2016: +9.2 points
- Growth in all regionsQ3 2016:
acceleration of growth of automotive business in North America
(+9%), China (+47%), and England (+41%).
- Consolidation of the Faurecia Auto
Exterior business begun€70 million in confirmed synergies by
2019
- Permanent adaptation of the
industrial scopeOpening or construction underway of six new
plantsEffective or announced closure of three plants
- Strengthening of R&D
- Key figures at September 30,
2016
In €M
3rd quarter Change
Change at constant scopeand exchange rates
3
2015 2016
Economic revenue1 1.417 1.710
+20.6% +13.4%
nine months Change
Change at constant scopeand exchange rates
3
2015 2016
Economic revenue1 4.363 4.889
12.1% +11.8%
Breakdown of economic revenue by
business segment
In €M, by segment
nine months Change
Change atconstant scopeand exchangerates
3
2015 2016
Automotive 4.080 4.613 +13.1% +12.6%
Environment 283 277 -2.1% +0.1%
Economic revenue1 4.363
4.889 +12.1% +11.8% Joint
ventures 699 776 +11.0% +14.8%
Consolidated revenue2 3.664
4.114 +12.3% +11.2%
Over the first nine months of the year 2016, economic revenue1
of Plastic Omnium totaled €4,889.3 million, an increase of +12.1%
in reported data, in comparison with the first nine months of the
year 2015. Growth was +11.8% at constant scope and exchange rates
(-€129.9 million due to currency effects and +€142.3 million due to
scope).
On July 29, 2016, Plastic Omnium acquired the Faurecia
Automotive Exterior Systems business from Faurecia. This
acquisition strengthened the Group's footprint both in industrial
terms and in Research and Development, particularly in Germany and
Spain, as well as the commercial portfolio of this division with
new clients (Audi, Daimler and Ford). With this acquisition,
Plastic Omnium confirmed its position as a world leader in the
production of bumpers and plastic body parts, with a 15% market
share.
In the 3rd quarter of 2016, economic revenue1 of Plastic Omnium
totaled €1,709.8 million, an increase of +20.6%, in reported
data, in comparison with the 3rd quarter of 2015, and by +13.4%, at
constant scope and exchange rates.
Consolidated revenue2 in the 3rd quarter of 2016 came to
€1,453.5 million, an increase of 22.2% in comparison with the 3rd
quarter of 2015 (+12.6% at constant scope and exchange rates).
For informational purposes, economic revenue in September 2016,
following the acquisition of the Faurecia Exterior Systems
business, came to €695 million, an increase of 31%.
Breakdown of economic revenue by
region
In €M and as a % of revenue,by
regionAutomotive and Environment
nine months Change
Change atconstant scopeand exchangerates
3
2015 2016 Europe 2.292
2.648 +15.6% +12.0% 53% 54%
North America 1.232 1.300 +5.5% +5.9%
28% 27% South America 126
131 +3.4% +27.9% 3% 3%
Asia, including China 712 811 +13.8% +18.5%
16% 17%
Economic
revenue1 4.363 4.889 +12.1%
+11.8% 100% 100%
Joint ventures 699 776 +11.0%
+14.8%
Consolidated revenue2
3.664 4.114 12.3%
+11.2%
Automotive Division: very sustained
growth over the first nine months of the year
Over the first nine months of the year 2016, revenue1 of Plastic
Omnium Automotive was €4,612.5 million. It grew by 13.1% and 12.6%,
at constant scope and exchange rates3, in a context of worldwide
automotive production that was up by 3.4%, thus representing market
outperformance of 9.2 points. This shows the solidity of the order
book, with the confirmation of gains in market share, new
capacities put into production (Mexico, England), and the success
of the portfolio of innovative products.
Business was very sustained in Europe, representing 49% of total
automotive revenue1. In a dynamic context of a 3.2% production
increase, Plastic Omnium grew by 13.1%, at constant scope and
exchange rates.
Business was particularly strong in the 3rd quarter of 2016 in
England (+40.7%), particularly owing to the commissioning and
production of the Jaguar-Land Rover exterior parts plant of
Warrington-Liverpool in June 2016. Moreover, development of SCR for
reducing diesel vehicles emissions continued worldwide, with a 37%
increase in the first nine months of the year, reaching revenue of
€200 million, two-thirds of which was achieved in Europe.
Business in North America grew by 5.9%, at constant scope and
exchange rates, over the first nine months of the year, after
having suffered, during the 1st quarter of 2016, from scheduled
production outages by manufacturers in Mexico, for model changes.
In the 3rd quarter of 2016, business in North America grew by 9.3%,
at constant scope and exchange rates, representing therefore
outperformance of 7.1 points, confirming that this region will be a
major growth area for the Group, with the startup of new capacities
in Mexico.
Business in Asia, including China, increased by 18.1%, at
constant scope and exchange rates. In China, which represents
revenue of €417 million, or 9% of total revenue, the increase in
business at constant exchange rates, came to +24.5% over the first
nine months of the year, for a 11.6% increase in automotive
production. The Group benefited from the high investments made over
the last three years to develop the industrial footprint and
increase market share.
The 25 plants now run by the Group in China (including 13 plants
built between 2013 and 2015) are seeing their loading progressively
swell with many new orders entering into production.
In the rest of Asia, growth in business increased by +11.9%,
carried by South Korea, Japan, and India.
Environmental Division: an enriched
product range to relaunch the growth of a refocused
division
Over the first nine months of the year 2016, revenue from the
Environmental business came to €276.9 million. It was stable, at
constant scope and exchange rates, in comparison with the first
nine months of 2015.
To concentrate its waste-containerization business, Plastic
Omnium Environment disposed of the following during the year:
- Signature Limited, its UK subsidiary,
specialized in highway signage,
- Its resin toy manufacturing plant in
Montauban,
- PO Emballagen GmbH, its German
subsidiary, specialized in the development, production, and
marketing of metal drums for the chemical industry.
These three disposals represent annual revenue of approximately
€60 million.
A European leader in waste containerization, which is both
profitable and generates free cash-flow, the Environmental division
created a new growth dynamic, with a product offering that includes
intelligent solutions, waste streamlining and carbon footprint
reduction of local and regional communities.
Performance evaluation over the
period
- Acquisition of
the Faurecia Exterior Systems business
The process of dynamic consolidation of acquired plants has
already begun, and confirms the objective of €70 million in Group
contributive synergies by 2019.
Also, pursuant to the decision of the European Commission, the
process for the disposal of the French sites and a Spanish site for
the bumper business, and of the front-end assembly business in
Germany, which represents revenue on the order of €700 million, is
ongoing. This revenue has not been recorded in the Group's
revenue.
- Optimized
industrial tooling and growth driver
During the first nine months of the year, the Group put two new
plants into production (San Jose Chiapa in Mexico and Warrington -
Liverpool in the United Kingdom). A 3rd plant will be commissioned
in the 4th quarter in Mexico (Leon).
The construction of three new plants has begun (one in Mexico,
one in China and one in India), to be commissioned in 2017 and
2018.
Also, the Group is continuing its ongoing effort to optimize its
industrial footprint, putting operational excellence and cost
control at the core of its strategy. Owing to a lack of incoming
orders, the Group had to close its French fuel systems plant in
Laval, on July 31, 2016.
In the United States, the front-end module assembly site of
Belvedere (Illinois) was also closed. Plastic Omnium also
announced, on October 19, 2016, the closing of its exterior body
parts production site in Norcross (Georgia), with transfer of
production to the Chattanooga (Tennessee) site, opened in August
2015 and to the Anderson site (South Carolina).
- Innovation as
a lever of growth and performance
Aware of the need to prepare for changes in the automotive
industry, Plastic Omnium is positioning itself as a player in
vehicle propulsion by hydrogen and fuel cells. In September 2016,
Plastic Omnium announced the formation, with the Israeli company
ELBIT Systems, of a fuel cell and super-condensor startup called
POCellTech. Plastic Omnium's know-how combines very low
precious-metal content fuel cell technology with the developments
already achieved by ELBIT Systems, and a new range of
super-condensors.
At the Mondial de l’Automobile trade fair in Paris, the Group
also presented a prototype for high-pressure hydrogen storage,
capable of ensuring great autonomy, with a recharge time of three
minutes, compared to several hours for electric vehicles.
The Group also announced the construction of an Advanced Center
for Research and Innovation in new energies, Δ-Deltatech. Based in
Brussels, it will require an investment of €50 million, and will
employ 200 engineers, for a projected opening in early 2019.
2016 growth objective
confirmed
The Plastic Omnium Group will achieve pro forma economic revenue
around €7.5 billion in 2016, thus confirming the strong
outperformance of its business compared with expected automotive
production, up from 2 to 3%.
In summary, all of the 2016 financial aggregates will show a
strong increase.
Calendar
February 23, 2017 – 2016 annual results
April 27, 2017 – Shareholders’ Meeting
Glossary
- Economic revenue corresponds to
consolidated revenue, plus revenue from the Group's joint ventures,
consolidated at their percentage of ownership. This metric reflects
the operating and managerial realities of the Group.
- 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.
- Scope effects exclude the Faurecia
Exterior Systems business, that was restated in 2016, and restate
the disposal of Signature Limited in August and September
2015.
- The revenue breakdown by region is as
follows: Europe (including Africa), North America, South America,
and Asia.
Appendix – 3rd quarter 2016 revenue
In €M, by segment
3rd quarter Change
Change atconstant scopeand exchangerates
3
2015 2016
Automotive 1.327 1.620 +22.1% +13.9%
Environment 91 90 -0.4% +4.9%
Economic revenue1 1.417
1.710 +20.6% +13.4% Joint
ventures 228 256 +12.3% +15.7%
Consolidated revenue2 1.189
1.454 +22.2% +12.6%
In €M and as a % of revenue,by
regionAutomotive and Environment
3rd quarter Change
Change atconstant scopeand exchangerates
3
2015 2016 Europe 733
905 +23.5% +8.3% 52% 53%
North America 428 467 +9.3% +9.1% 30%
27% South America 43 55 +27.9%
+38.9% 3% 3% Asia,
including China 213 282 +32.1% +34.3% 15% 16%
Economic revenue1
1.417 1.710 +20.6% +13.4%
100% 100%
Joint ventures
228 256 +12.3%
+15.7%
Consolidated revenue2
1.189 1.454 +22.2%
+12.6%
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
has 32,000 employees across 132 plants, 22 R&D center s and 30
countries worldwide. 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).
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Financial informationTel.: +33 (0)1 40 87 66 78Fax: +33
(0)1 40 87 96 62investor.relations@plasticomnium.com
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