Plastic Omnium S.A. Business Report FY2007
|(in million euros)||FY2007||FY2006||Rate of change||Factors|
|Automotive Equipment Sales||2,249.5||2,005.5||12.2%||
See Item (1) below.
(1) The Automotive businesses continued to outperform the global automobile market. Revenue rose by 12.2% for the year (following increases of 16% in 2005 and 15% in 2006), led by the development of exterior modules and new plants in fast-growing automobile-producing regions.
Growth accelerated in the second half. The Company's French plants saw a return to revenue growth with the launch of new production programs for Renault and Peugeot, while the United States benefited from a sharp increase in demand from BMW and General Motors.
Renault/Nissan and General Motors are the Division's biggest customers, representing about 20% of sales each, followed by PSA Peugeot Citroen (16%), Volkswagen (11%) and BMW (11%).
Operating profit in the Automotive
businesses decreased by 7.4 million Euros in the first half because
of lower volumes, especially in France. The decline was not offset
by the second half's sharp growth. For the year, Automotive operating
profit was down by 6.4 million Euros and represented 3.5% of Division
revenue, compared with 4.2% in 2006.
-In January 2007, the Company acquired Cadence Innovation's plant in Vernon, Normandy. The plant produces bumpers for the Citroen C2 and C3, Peugeot 1007 and Renault Twingo. With the support of PSA Peugeot Citroen, which has committed to maintaining its order volumes over the medium term, the acquisition has strengthened the Company's positions in France. The plant generated revenue of 26 million Euros in 2007.
-In July 2007, Inoplast, the European leader in hatchbacks made of thermoset composites, became a wholly owned subsidiary following the buyout of minority interests (16%).
-In China, with the creation in April 2007 of Yanfeng Plastic Omnium Automotive Exterior Systems Co., Ltd. (YFPO), in which Plastic Omnium Auto Exteriors holds a 49.95% stake. A manufacturer of exterior components, YFPO came on stream in late first-half 2007, supplying customers from its two production facilities in Anting and Chongqing. The company has 500 employees. The creation of YFPO follows Inoplast's April 2006 acquisition of a 60% stake in XieNO, which mainly supplies truck manufacturers FAW and China National Heavy Trucks.
-In India, where Plastic Omnium Varroc,
a joint venture with India's Varroc, was created in October 2007.
The new company will deliver exterior components to Indian and global
carmakers. In December, construction began of a fuel system plant
that will begin supplying Toyota in 2009.
-The Company closed its fuel system plant in Oppama, Japan, and announced its decision to close its plant in Blenheim, Canada, in 2008.
-For 2008, the Company announced that its Automotive Equipment businesses should once again outperform a market expected to remain flat in Western Europe and North America, its two leading production and sales regions.
Development in fast-growing automobile production markets will continue with:
-The start-up of a plant in Russia to supply fuel systems for the Renault Logan.
-Production launches in China of the Company's first fuel systems and front-end modules.
-The construction of an exterior components plant and a fuel system plant in India, which will come on stream in 2009.
These facilities will extend its production base of 69 automotive equipment plants, of which more than half are located outside Western Europe.
-In 2007, research and development allocation totaled 127.9 million Euros or 4.8% of consolidated revenue, (105 million Euros in 2006).
-A total of 1,190 engineers and technicians are employed worldwide in 27 R&D centers located near carmaker decision-making centers.
-The Company manages a portfolio of 635 patents, of which 47 were filed in 2007.
R&D Highlights in 2007
-In Automotive Equipment, research focuses on reducing CO2 and particle emissions, making body components lighter, developing more fully functioned modules and improving pedestrian safety. To achieve these goals, the Company leverages its expertise in component architecture, injection and paint technologies, and materials formulation.
|in million Euros||FY2007||FY2006||FY2005|
-Inergy Automotive Systems is building a plant in Wuhan (Hubei Province) that is scheduled to come on stream in 2008 to deliver fuel systems to Nissan and General Motors, while HBPO will supply front-end modules to Chrysler, also beginning in 2008, from a new assembly plant in Fuzhou. Present in China only since 2006, the Company expects to generate revenue of roughly 200 million Euros in the country by 2012.
-In Argentina, with the late-year start-up of a new exterior components plant in Pilar.