In 2022, the Plastic Omnium group expects outperformance compared to global automotive production.
The crisis in the global automotive market has slowed many suppliers, but some have managed to return to profit. This is the case of Plastic Omnium, which published its 2021 financial results, for which the boss Laurent Favre claims to have ” hit [nos] annual performance objectives thanks to the mobilization of [nos] teams, to the optimization of [nos] costs and to a significant commercial outperformanceespecially in Asia and in electrification”. And to add: “Demanding in the short term and ambitious for the long term, we are mobilized to continue to gain market share and conquer new growth territories”.
All lights green for Plastic Omnium
Despite a slowdown in its activities in the second half of the year, Plastic Omnium, which designs and manufactures exterior body parts (particularly bumpers), fuel tanks and vehicle pollution control systems, returned to the green by posting revenue of 8 billion euros, up 3.7% compared to 2020. While the operating margin amounted to 4.2% of consolidated sales (€303 million, +2.5 points), the net income group share displayed was 126 million euros in 2021, against a loss of profits of 251 million euros in 2020. Over the year, investments were limited to 294 million euros, it is specified, therefore a free cash flow at 3.5% of turnover consolidation, i.e. 251 million euros, was also released. Note that for the previous financial year, it did not exceed 34 million euros.
The company indicates that it has been able to achieve 100 million euros in savings as part of its transformation plan, in particular by reviewing its purchasing and its design and development procedures.
Outperformance against global car production
Plastic Omnium’s activity was significantly higher than automotive production in Europe (outperformance of 5.3 points), North America (+2.9 points), China (+4.1 points) and Asia excluding China (+10.3 points). He also adds that ” the segment electric vehicleswhich is booming, represents 8% of the group’s economic revenue (outperformance of 2 points compared to the total market) in 2021 compared to 5% in 2020. Excluding the fuel systems market, the share reaches 12% (outperformance 6 points) compared to 7% in 2020, demonstrating strong momentum in market share gains”.
Plastic Omnium’s outlook for 2022 is as follows: the group has established its objectives on the basis of IHS’ global automotive production announced at 81 million vehicles in total, with a 5% discount, and expects to generate a turnover of economic business that outperforms market growth, then an operating margin of between 5 and 6%as well as a generation of free cash flow of more than 260 million euros.
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