13.4% increase in revenue in first nine months of 2021, in a challenging environment
Reinforcement in third quarter of cost saving measures to tackle accelerated deterioration of market.
|In the third quarter of 2021:
– Economic revenue down 14.4% against a 19.5% market decrease,
– Strong cost reduction measures, reducing the impact of production stoppages linked to semiconductor shortages,
– Priority on cash generation,
– Significant breakthroughs in the commercial pipeline for hydrogen storage systems,
– Reinforcement of Group’s position in electric vehicles,
– High number of production starts and order intakes.
In the first nine months of 2021:
– Economic revenue up 13.4% versus a 9.7% increase in global automotive production,
– Growth in all geographical areas, including:
* Europe, driven by a successful first half of 2021 a large number of production starts in Q3 and positive momentum in electric vehicles,
* China and the Rest of Asia, thanks to a strong recovery from COVID and a lower relative impact from the semiconductor shortages.
Updated guidance for FY 2021 demonstrating a strong adaptation capacity in the face of the semiconductor crisis and supported by solid financial fundamentals.
The third quarter of 2021 has witnessed an exceptionally volatile market, based on the ongoing supply shortage of semiconductors. This has led to unforeseeable stops and starts in production on the basis of last minute notifications by car manufacturers. The subsequent and unforeseeable sharp reduction in production volumes is evidenced by IHS’ drastic revision to worldwide automotive output for 2021.
Our agility and solid financial fundamentals give us confidence in our ability to manage this difficult period together with our customers. Our teams are doing a remarkable job of increasing the flexibility of our production facilities and adapting our operations. As of now, IHS foresees some recovery in the second half of 2022 and we will be ready for it, supported by a solid backlog. Moreover, we are significantly sharpening our focus on cost reduction and cash generation.
We are continuing to lay the groundwork to support our long term growth strategy which aims to increase the content per vehicle, expand our customer base, and accelerate our strategy to promote clean mobility. We see sustainability not as a constraint, but as a competitive advantage and driver of change. On December 8, we will present our objectives in relation to our sustainability roadmap.
Laurent Favre, Chief Executive Officer of Compagnie Plastic Omnium SE
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2021 Q3 Confcall presentation
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