Compagnie Plastic Omnium : Compagnie Plastic Omnium : 2012 FINANCIAL RESULTS

 Compagnie Plastic Omnium : Compagnie Plastic Omnium : 2012 FINANCIAL RESULTS

                                                      Paris - 28 February 2013
                               

                            2012 FINANCIAL RESULTS

Plastic Omnium reported further increases in revenue and earnings in 2012.

· Revenue increased by 14% compared with 2011 to €4.8billion.

· Operating margin  totaled €335million, representing  7% of  revenue 
for the third year in a row.

· Net profit increased by 6% to €181million (3.8% of revenue),  after 
€42million in impairment losses and restructuring costs.

· Free cash flow amounted to  €168million in 2012 and totaled  nearly 
€700million over four years, enabling Compagnie Plastic Omnium to  strengthen 
its independence.

· Capital expenditure rose by 14% to €261million.

· Net debt was reduced by €81million to €390million and  represented 
47% of equity, compared with 64% in 2011.

2012 Results

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        296.5   335.1
as a % of revenue       7.0%    7.0%
Net Profit              171.4   181.5
Net profit-group share  164.7   173.4
EBITDA                  461.0   505.4
as a % of revenue       10.9%   10.5%
Net debt at 31 December 471.0   389.8
Gearing                 64%     47%

Automotive

Revenue for  the Automotive  business totaled  €4.34billion, 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.

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 €316.3million  (7.3% of  revenue) compared  with €273.2million  in 
2011.



Environment

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  €18.8million (4.1% of  revenue), 
compared with €23.3million (4.7% of revenue) last year, and substantial  free 
cash flow  despite  a  European business  environment  impacted  by  budgetary 
restrictions.

Net profit of €181.5million, representing 3.8% of revenue

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   €42million   in   impairment   losses   and 
restructuring costs.

Net profit amounted to €181.5  million, compared with €171.4million in  2011, 
while earnings per share increased from €3.44 to €3.64.

Free cash flow of €168million, representing 3.5% of revenue

Funds from operations totaled €474million (9.9% of revenue) and amply covered
€261million 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 €390million, representing 47% of equity, compared with  64% 
at year-end 2011, and 0.8times 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 €370million for six years without covenants.

Dividend per share of €0.76

At the Annual Meeting of Shareholders on 25April 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 3May 2013, following
shareholder approval.


Outlook for 2013

Worldwide automobile  production  is expected  to  rise  by 1-2%  in  2013  to 
81million 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

Plastic Omnium : 2012 Financial Results

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