Plastic Omnium: operating income dip in sight
(CercleFinance.com) - For the 1st half of the year, the accounts of the automotive supplier Plastic Omnium have withstood a declining market.
However, over the full year 2019, management now expects a dip in operating income.
Partly due to the global integration of HBPO on 1 July 2018, published revenues were up 20.7% in the first half of the year (1H) to 4.6 billion euros. In terms of like-for-like data, sales are stable (+0.2%) outperforming by 7.1 percentage points a global automobile market in decline by 6.9% in 1H 2019, compared to -4.4% in 2H 2018.
Operating income fell 13.3% to 281 million, which is 6.6% of revenue (-3.6 percentage points), and the group share of net profits plunged 33% to 155 million.
Although global automobile manufacturing should contract 4.5% in 2019, Plastic Omnium plans to strengthen its cost-reduction plan. It still expects to outperform the market by at least 5 percentage points. Despite this, the group “expects its operating income to decrease slightly compared to the E610 million achieved in 2018”. EBITDA is nevertheless expected to be higher.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
However, over the full year 2019, management now expects a dip in operating income.
Partly due to the global integration of HBPO on 1 July 2018, published revenues were up 20.7% in the first half of the year (1H) to 4.6 billion euros. In terms of like-for-like data, sales are stable (+0.2%) outperforming by 7.1 percentage points a global automobile market in decline by 6.9% in 1H 2019, compared to -4.4% in 2H 2018.
Operating income fell 13.3% to 281 million, which is 6.6% of revenue (-3.6 percentage points), and the group share of net profits plunged 33% to 155 million.
Although global automobile manufacturing should contract 4.5% in 2019, Plastic Omnium plans to strengthen its cost-reduction plan. It still expects to outperform the market by at least 5 percentage points. Despite this, the group “expects its operating income to decrease slightly compared to the E610 million achieved in 2018”. EBITDA is nevertheless expected to be higher.
Copyright (c) 2019 CercleFinance.com. All rights reserved.