French automotive parts supplier Plastic Omnium has posted “record results” for the full financial year 2017, with revenue up 15% to €8bn, compared to the previous year.
The company reported strong growth in sales across all regions, registering 15.2% rise in earnings (EBITDA) at €933.0m.
This sharp increase in revenue was attributed to the organic growth of 10.8% in the automotive business, which outperformed global automotive production by 8.6 points.
Additionally, the performance of Exterior Systems acquired on in July 2016 helped improve income.
The group said in a 15 Feb statement that it had successfully consolidated the businesses acquired in 2016, adding that acquisitions and disposals led to a positive net impact of €707.7 million on sales, compared to 2016.
Over the year, exchange rates reduced turnover by €98.6 million.
In terms of profitability the automotive operating margin stood at €619.8 million at the end of the year, representing 9.6% of consolidated sales, versus 9.1% for 2016.
The automotive division, said Plastic Omnium, improved its operating margin thanks to a high production capacity utilisation rate worldwide.
The rate, said the French supplier, was 85%, based on three teams per day, five days a week.
Other contributing factors to profitability were the operational excellence programmes, a strict cost control; “and the earlier than expected success of the recovery measures to turn around the Exterior Systems business.”
In its Investors Day in December last year, the French plastic parts supplier unveiled plans to invest €2.5bn in building new capacities and technology over the next four years.
The group said out of that total, it invested €457.1 million in 2017, i.e. 6.8% of consolidated sales.
“We are investing in new research centres, developing and acquiring new technologies, and training and recruiting tomorrow's skills…. We are enthusiastic as we move into 2018 with the outlook of a further improvement in results," said Laurent Burelle, chairman and chief executive officer of Compagnie Plastic Omnium.