PLASTIC OMNIUM
Solvay's 50% stake in Inergy Automotive Systems acquired / Significant increases in profit and revenues in first half of 2010 / Debt reduced by EUR 200m over 18 months
OEM supplier Plastic Omnium (PO, Levallois / France; www.plasticomnium.com) has reached an agreement to acquire Solvay's (Brussels / Belgium; www.solvay.com) 50% stake in the common joint venture Inergy Automotive Systems (Paris / France; www.inergyautomotive.com) for a total price of EUR 270m. Pending the approval of the cartel authorities, the deal could go through in October this year. The fuel tank manufacturer is expected to generate revenues of EUR 1.1 bn in 2010, with an operating margin similar to that of Plastic Omnium’s automotive division.
But the good news does not stop there. Thanks to cost cutting and international expansion, PO was able to achieve a 19% year-on-year increase in operating profit (EBITDA) to EUR 173m in the first half of 2010. Sales rose by 28%, compared with the same period in 2009, to EUR 1.52 bn as the effect of bringing on stream 10 new plants globally in 2008 and 2009 continued to be felt. A further five facilities are currently being built as the company follows its “country-customer-business” expansion focusing on China, India and South America.
PO has cut its cost base by EUR 100m and has continued to significantly lower its debt – by EUR 49m in the first six months of 2010. Since 31 December 2008 it has reduced debt by EUR 200m and halved its net debt-to-equity ratio. It said its businesses are “well positioned” for the second half of 2010.
While sales in France, which accounted for 22% of revenues in the first half of 2010, fell by 15% compared with the first six months of 2009, there was robust sales growth in other geographical regions. The company’s largest market, Europe (excluding France), with 38% of revenues, experienced a 23% year-on-year increase in sales, North America (23% of sales) grew by 97%, Asia (12% of sales) by 99% and South America and Africa (5% of sales) by 62%.
The company’s environmental division saw revenues increase by over 6% in the first half of 2010 compared with the same period in 2009, with demand rising due to the increasing introduction of incentive-based invoicing systems, based on the “polluter pays” principle, and by the development of sorted waste collection.
The company said that it continued to expand in the areas of pollution control and vehicle weight reduction, through winning a number of contracts for plastic automotive body components, new hatchback models and hybrid vehicle fuel tanks. Additionally, its auto exterior business acquired the Vigo / Spain plant of Peguform (Bötzingen / Germany; www.peguform.de), which manufactures body components for the local PSA Peugeot Citroën facility.
But the good news does not stop there. Thanks to cost cutting and international expansion, PO was able to achieve a 19% year-on-year increase in operating profit (EBITDA) to EUR 173m in the first half of 2010. Sales rose by 28%, compared with the same period in 2009, to EUR 1.52 bn as the effect of bringing on stream 10 new plants globally in 2008 and 2009 continued to be felt. A further five facilities are currently being built as the company follows its “country-customer-business” expansion focusing on China, India and South America.
PO has cut its cost base by EUR 100m and has continued to significantly lower its debt – by EUR 49m in the first six months of 2010. Since 31 December 2008 it has reduced debt by EUR 200m and halved its net debt-to-equity ratio. It said its businesses are “well positioned” for the second half of 2010.
While sales in France, which accounted for 22% of revenues in the first half of 2010, fell by 15% compared with the first six months of 2009, there was robust sales growth in other geographical regions. The company’s largest market, Europe (excluding France), with 38% of revenues, experienced a 23% year-on-year increase in sales, North America (23% of sales) grew by 97%, Asia (12% of sales) by 99% and South America and Africa (5% of sales) by 62%.
The company’s environmental division saw revenues increase by over 6% in the first half of 2010 compared with the same period in 2009, with demand rising due to the increasing introduction of incentive-based invoicing systems, based on the “polluter pays” principle, and by the development of sorted waste collection.
The company said that it continued to expand in the areas of pollution control and vehicle weight reduction, through winning a number of contracts for plastic automotive body components, new hatchback models and hybrid vehicle fuel tanks. Additionally, its auto exterior business acquired the Vigo / Spain plant of Peguform (Bötzingen / Germany; www.peguform.de), which manufactures body components for the local PSA Peugeot Citroën facility.
30.07.2010 Plasteurope.com [216891]
Published on 30.07.2010
German version of this article...