Despite strong activity and a buoyant backlog, operational difficulties affecting the start-up of the new Greer plant (South Carolina) have led the Group to review its financial outlook for 2019

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-  08 October 2019

Despite strong activity and a buoyant backlog, operational difficulties affecting the start-up of the new Greer plant (South Carolina) have led the Group to review its financial outlook for 2019

Over the first nine months of 2019, Plastic Omnium Group activity was very strong. Economic revenue amounted to €6,852 million (€6,356 million in consolidated revenue), up 17.0%. At constant scope and exchange rates, the rise was 2.7% compared to September 30, 2018, i.e. outperformance of 8.7 points compared to automotive production estimated to be down 6.0% over the period.

At the same time as this strong business, Plastic Omnium experienced significant operating difficulties in the ramp-up of its North American Greer plant (South Carolina). The difficulties encountered relate to the size of the plant, the complexity of the process and the acceleration of volumes since summer 2019.
A detailed action plan covering the 2019-2020 period has been put in place across the entire industrial footprint in South Carolina.
The impact of these difficulties has led the Group to review its operating margin outlook for 2019, which is now expected to be around 6% of revenue.

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