PLASTIC OMNIUM (EPA:POM) - Q1 2019 revenue: Worldwide automotive production outperformed by 6.5 points
Directive transparence : information réglementée Information financière du premier trimestre
23/04/2019 06:20
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Levallois, April 23, 2019,
Q1 2019 revenue : Worldwide automotive production outperformed by 6.5 points4
Compagnie Plastic Omnium's economic revenue1 amounted to EUR2,236 million in Q1
2019, up by 20%. At constant scope and exchange rates, the Group's revenue was
stable, in comparison to a 6.8% decline in worldwide automotive production.
"In a weakened environment, our growth was strong (+20%) thanks to the takeover
of HBPO, the worldwide leader in front-end modules, in July 2018. As expected,
we achieved a 6.5 point outperformance against worldwide automotive production,
which saw a significant decline in Q1 2019.
While continuing to innovate for the autonomous, carbon-free car of the future,
all of our teams are ready to face worldwide automotive production now expected
to decline for the whole of 2019".
Laurent Burelle, Chairman and Chief Executive Officer
Growth and outperformance
In EUR millions
by business line Q1 2018 Q1 2019 Change Change at constant
scope and exchange
rates(3)
Plastic Omnium Industries 1,684.3 1,673.4 -0.6% -2.5%
Plastic Omnium Modules 179.4 562.8 +213.6% +6.8%
Economic revenue(1) 1,863.7 2,236.2 +20.0% -0.3%
Joint ventures 305.8 161.3 -47.3% -0.8%
Consolidated revenue(2) 1,557.9 2,074.9 +33.2% -0.3%
Worldwide automotive production declined 6.8%4 in Q1 2019 compared to Q1 2018,
i.e. 22 million vehicles produced versus 23.6 million (-1.6 million). The Group
outperformed by 6.5 points, including 13.6 points for Plastic Omnium Modules,
which confirmed its strong growth potential, as stated at the time of the HBPO
takeover in July 2018.
Plastic Omnium outperformed worldwide automotive production in its main
production regions: outperformance of 5.2 points in Europe (55% of revenue),
5.3 points in North America (27% of revenue) and 12.6 points in Asia (17% of
revenue).
At constant scope and exchange rates, revenue was stable, thanks to growth in
Asia (+4.8%) and in North America (+2.7%), offsetting the decline in Europe.
In millions of euros and in % of revenue
By region Q1 2018 Q1 2019 Change Change like- Worldwide automotive
for-like* production(4)
Europe/Africa 1,044.7 1,229.2 +17.7% -2.6% -7.8%
56% 55%
North America 447.8 599.0 +33.8% +2.7% -2.6%
24% 27%
Asia, including
China 318.7 370.6 +16.3% +4.8% -7.8%
17% 17%
South America 52.4 37.4 -28.6% -10.3% -4.8%
3% 1%
Economic
revenue(1) 1,863.7 2,236.2 +20.0% -0.3% -6.8%
Joint ventures 305.8 161.3 -47.3% -0.8% -
Consolidated
revenue(2) 1,557.9 2,074.9 +33.2% -0.3% -6.8%
*like-for-like change = at constant scope and exchange rates
The business in Europe, down 2.6% in Q1 2019, has been impacted by the slump in
automotive production in Germany (-10.3%) and in England (-14.7%). This decline
is partially offset by SCR (diesel emissions control system, +37%) and by very
strong business in Eastern Europe (+19%), particularly in Slovakia (+44%).
North American revenue benefited from the ramp-up of new American and Mexican
plants, growing 2.7% at constant scope and exchange rates.
The business in Asia grew by 4.8%. In China, revenue amounted to EUR185
million, and stood up well (-3.8% at constant scope and exchange rates) to a
14.2% drop in production. In Asia excluding China, Plastic Omnium performed
well in Korea and Turkey.
Numerous site openings in H1 2019
In Q1 2019, Plastic Omnium commissioned two plants, one in India and one in
Slovakia for its Intelligent Exterior Systems business. An additional plant
will open in Kenitra in Morocco in July 2019. A new module assembly site in
Mexico also began operating. Furthermore, the construction or expansion of
three R&D centers (France, Belgium and China) continued, with openings due in
June 2019.
All these plant and R&D center investments (EUR190 million), largely
concentrated in H1 2019, will support the Group's capacity to both grow and
offer innovative solutions to its customers.
Increased control by the majority shareholder Burelle SA
Between March 12 and March 26, 2019, Burelle SA acquired 400,000 Compagnie
Plastic Omnium shares, bringing its shareholding from 58.51% to 58.78%.
2019 Outlook
Plastic Omnium forecasts a worldwide automotive production slowdown of around
5% in H1 2019 and now expects worldwide automotive production to decline for
the whole of 2019.
On the basis of these forecasts, Plastic Omnium, already committed to a cost
reduction program since Q4 2018, has emphasized its cost saving measures,
which should show their full impact from H2 2019.
In this context, Plastic Omnium confirms for H1 2019:
- outperformance of 5 points for its businesses compared to a drop in
worldwide
automotive production of around 5%;
- as already indicated, operating profit lower than H1 2018.
Upcoming forecasts of the automotive market in H2 2019 will be key to
confirming changes in our annual results.
Calendar
April 25, 2019 Shareholders' Meeting - Pavillon Dauphine, Paris, 5.00 pm
May 2, 2019 Ex-dividend date
May 6, 2019 Dividend payment date, set at EUR0.74
July 19, 2019 H1 2019 results
Glossary
1. The economic revenue reflects the Group's operational and managerial
reality. It corresponds to the consolidated sales plus the sales of the
Group's joint ventures at the Group's percentage stake: BPO (50%) and YFPO
(50%) and HBPO for 33.33% until its full consolidation on July 1st, 2018.
2. Consolidated revenue, in implementation of IFRS 10-11-12, does not include
the share of joint ventures, which are consolidated using the equity method.
3. At constant scope and exchange rates:
a. the currency effect is calculated by applying the exchange rate of the
previous period to revenues of the current period. As of Q1 2019, the
currency effect is positive in the amount of EUR39.1 million on economic
revenue and EUR38.4 million on consolidated revenue;
b. the scope effect is calculated by applying to the previous period the
consolidation method of the current period. The full consolidation of
HBPO by Plastic Omnium Modules thus had an impact in Q1 2018 of EUR337.4
million on economic revenue and EUR484.1 million on consolidated revenue.
4. Source : IHS, April 2019