Apr 23, 2024 (MarketLine via COMTEX) --
Compagnie Plastic Omnium has Released Q1 2024 Revenue.
Revenuea) at €2,867 million, outperforming the global automotive productionj) by +4.5 points United States is the 1st contributor to Group revenue Plastic Omnium is now OPmobility
• Q1 2024 economic revenuea) of €2,867 million, up +1.6% (+3.6% LFLc)), outperforming global automotive productionj) by +4.5 points, in line with Group annual target.
• The United States is the top contributor to Group revenue, confirming a wellbalanced geographical footprint. The new module assembly plant in Austin (Texas), will contribute to accelerate OPmobility’s activity growth in North America.
• With its name change to OPmobility, the Group turns a new page in its history and confirms the acceleration of its strategic transformation as a leading player in sustainable and connected mobility.
• Successful completion of a €500 million bond issue due March 2029, extending the average maturity of the Group’s debt. This issue followed S&P Global Ratings assigning the Group a BB+ rating with a stable outlook.
• The Group confirms its outlook for 2024, with an improvement in all financial aggregates compared to 2023: operating margin, net result Group share, free cash flow, and net debt.
Q1 2024 revenue growth of +3.6%c)
OPmobility changed the name of some of its business groups (formerly divisions): - Intelligent Exterior Systems is now Exterior (exterior systems activity);
- Clean Energy Systems is now C-Power (energy and emission reduction systems and batteries and electrification systems); - New Energies is now H2-Power (hydrogen activity);
- Lighting and Modules remain unchanged. Figures of the press release are presented using the new segment reporting formati) announced on the presentation of the 2023 annual results:
- Exterior Systems, which includes the Exterior and Lighting business groups; - Modules;
- Powertrain, which includes the C-Power (including e-Power) and H2-Power business groups.
OPmobility reported economic revenuea) of €2,867 million for Q1 2024, up +1.6%a) and +3.6%c) like-for-like, confirming the Group’s strong commercial momentum mainly driven by the Exterior business group. The joint ventures, which mainly manufacture exterior car body parts in Asia, reported likefor-like growth of +5.4%c) in Q1 2024.
• Exterior Systems: economic revenuea) increased by +3.8% (+5.5% LFLc)) compared to Q1 2023. The Exterior business group benefits from a solid order book recorded in recent years. Lighting revenue is down on Q1 2023, in line with Group forecasts, due to a lower order book prior to its acquisition by OPmobility.
• Modules: economic revenuea) is stable at -0.3% (+1.1% LFLc)) compared to Q1 2023, with rising volumes in North America. After strong growth in Q1 2023 tied to a recovery in activity following the impact of the conflict in Ukraine, activity was boosted in Q1 2024 by the good performance of the new module assembly plant in Austin, Texas, to meet a historic order for a major American player in electric mobility.
• Powertrain: economic revenuea) is stable at -0.4% (+2.8% LFLc)) year-on-year. Activity levels of the C-Power business group remained similar to Q1 2023, consolidating its leading position and confirming the relevance of the Group’s strategy in the fuel tanks and emission reduction systems production market. H2-Power was still driven by sales in Europe and China.
The Group also booked a key order in the United States from a premium manufacturer for hydrogen vessels for SUVs. OPmobility consolidated revenueb), excluding joint ventures, amounted to €2,613 million in Q1 2024, up +1.9% (+3.4% LFLc)) year-on-year. It includes a currency effect of -€38 million, mainly on the Argentine peso, the US dollar, and the Chinese renminbi. In a market down -0.9%, OPmobility outperformed automotive productionj) by +4.5 points According to S&P Global Mobilityj), global automotive production fell -0.9% in Q1 2024, after a strong recovery in Q1 2023. In this context, OPmobility reported solid growth in Q1 2024, outperforming the market by +4.5 points, in line with its annual target.
• In Europe, economic revenuea) totaled €1,445 million, down -2.1% year-on-year (-1.9% LFLc)). The Group outperformed automotive productionj) by +1.2 point in this region, boosted mainly by the Exterior business group in Q1 2024, mainly in Spain, Poland, and the United Kingdom.
• In North America, economic revenuea) amounted to €845 million and represented 29% of total Group revenue in Q1 2024, compared to 26% in Q1 2023. Revenuea) increased significantly by +14.1% (+15.5% LFLc)) year-on-year, outperforming the market. The Group’s performance was driven in particular by the C-Power business group, with sales of fuel tanks and emission reduction systems up on Q1 2023, in a context of development of hybrid powertrain. In addition, the Group benefited from higher assembled module volumes at the new Austin plant.
• In China, the Group posted economic revenuea) of €215 million in Q1 2024, down -16.7% (-11.5% LFLc)) year-on-year. The C-Power business group remains impacted in a market where growth is mainly driven by electric vehicle production. At the same time, OPmobility also continued to strengthen its exposure in the region with YFPO, a joint venture with Yanfeng producing exterior parts for most companies.
• In Asia excluding China, Group economic revenuea) amounted to €233 million in Q1 2024, up +1.7% year-on-year (+7.9% LFLc)), outperforming automotive productionj) by +14.5 points. The region is driven by the solid performance of the C-Power business group, particularly in South Korea and India, in a market that benefits the hybrid vehicle segment in particular.
Plastic Omnium is now OPmobility By becoming OPmobility, the Group turns a new page in its history and confirms the acceleration of its strategic transformation as a leading player in sustainable and connected mobility. In just a few years, the Group has implemented an ambitious strategic roadmap leading the Group to diversify its activities through major acquisitions, and to enlarge its customer portfolio and geographical footprint. With now five business groups as well as a dedicated software activity, OPmobility is expanding all over the world, extending its customer base to encompass all mobility players. Conveying an optimistic vision of the future, OPmobility’s visual identity embodies the Group’s historical roots, its values, and its drive for constant growth. Open to all forms of mobility, OPmobility will continue to support their transition towards decarbonation. The Group continues to deploy its industrial strategy to support its future growth OPmobility inaugurates its first plant in Texas To address its substantial order book in the United States, the Group inaugurated its new module assembly plant in Austin, Texas, on April 16, 2024, to support a major American player in electric mobility.
This plant, with an annual assembly capacity of 2.5 million modules, was built in just a few months and is set to quickly become the Group’s largest plant in terms of revenue. This plant will expand in the future by supplying modules for new vehicle series as well as exterior body parts. This new plant reflects the Group’s strategy to diversify both the customer base towards pure electric vehicle players and its geographical footprint. With this new location, all the Group’s activities are now present in the United States (Exterior, C-Power, Modules, Lighting and H2-Power), where OPmobility already generated nearly 15% of its revenue in 2023.
The Group aims to double its revenue in the United States over the next five years. OPmobility strengthens its leading position in India In March 2024, the Group laid the first stone for its fifth plant and inaugurated a second research and development center in India, in Pune (Maharashtra State). Since entering the country in 2007, the Group has become a key player for automotive OEMs. In India, one out of two vehicles are now equipped by OPmobility. The new plant, the Group’s largest in the country, will supply exterior body systems to the Indian automotive market. It could ultimately produce up to 1 million automotive parts.
annually, allowing the Group to continue to serve its international manufacturing customers while strengthening its ties with Indian manufacturers. The new R&D center, designed to accommodate up to 600 engineers, strengthens and pools the Group’s research capabilities in lighting and exterior body systems. OPmobility launches the construction of its new hydrogen plant in China In Q1 2024, the Group stepped-up its industrial momentum in China, launching the construction of its plant for high-pressure hydrogen tanks in Shanghai as part of the PO-Rein joint venture. Scheduled to be operational in 2026, the new plant will produce up to 60,000 high-pressure hydrogen tanks annually for the Chinese commercial vehicle market.
This plant strengthens OPmobility’s production capacity in Shanghai, where the Group already has its first hydrogen tank production plant, operational since 2024. OPmobility continues its financial strategy, diversifying its sources of financing and extending the average maturity of its debt In March 2024, the Group successfully placed a €500 million bond issue due March 2029, with a coupon of 4.875%. The order book was more than three times subscribed, demonstrating investor confidence in the Group’s long-term trajectory.
The issue followed S&P Global Ratings assigning the Group a BB+ rating with a stable outlook on March 1, 2024, supported by: - A global leader position in its core businesses, such as bumpers, fuel tanks and frontend modules; - A record high order intake, equivalent to two years of 2023 revenue, reflecting OPmobility’s commercial success and the relevance of its product portfolio; - Operating performance reflected by recurring cash flow generation; - A sound financial policy with a particular focus on deleveraging. This long-term credit rating will allow the Group to further diversify its sources of funding, enhance its access to capital markets, and manage debt maturities in line with the Group strategy. OPmobility strengthens its commitments to sustainable development and low-carbon mobility Sustainable development is a strategic concern for OPmobility, as reflected in its ACT FOR ALLTM program, which includes strong commitments to sustainable mobility, such as achieving carbon neutrality by 2050.
These commitments have been recognized by the CDP, which awarded OPmobility its top rating for its climate action, rewarding in particular its ambitious roadmap, carbon neutrality progress across its entire value chain, and the quality of its environmental reporting. The Group joins the prestigious A-list of some 400 best-performing global companies out of more than 21,000 companies assessed by CDP in 2023. The Group's efforts are also supported by the commitment of its 40,300 employees through proactive actions, such as the launch of the OPmobility Climate School in Q1 2024. This program offers innovative training that helps employees understand climate issues and the role they can play throughout the organization. It also includes sustainable practices that can be adopted in daily life and promotes a positive corporate culture.
Group Outlook In 2024, the automotive production market is expected to decline slightly, by an estimated -0.3% according to S&Pj), in an environment marked by a more gradual transition to decarbonized mobility than expected. OPmobility confirms its 2024 objectives, with the aim to outperform global automotive productionj) and improve all its financial aggregates (operating margind), net result Group share, free cash flowg) and net debth)) compared to 2023.
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COMTEX_451339004/2227/2024-04-24T09:30:35
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