PARIS — Plastic Omnium reported a 35 p.c improve in income for the primary half of the yr on Monday, because the provider anticipates value battles amongst automakers as they need to take care of a slowdown in electric-vehicle orders, notably in Europe, which can lead to purchasers adopting a extra aggressive pricing coverage than in current quarters.
Plastic Omnium confirmed its annual aims, buoyed by a brand new report of orders over the previous six months.
The firm stated internet earnings for the primary half fell 4 p.c to 100 million euros ($111 million) on income of 5.8 billion euros ($6.4 billion).
Revenue surged 40 p.c in Europe to three.0 billion euros ($3.3 billion).
In North America, income grew 26 p.c to 1.6 billion euros ($1.7 billion).
Automakers may have no alternative however to observe a development of reducing costs in the event that they wish to preserve the mandatory volumes, stated CEO Laurent Favre.
Chinese automakers and U.S. firm Tesla, recognized for his or her aggressive pricing, proceed to carry out nicely with excessive volumes, Favre stated.
“We are fortunate to work with everyone, which means we also work with those who export,” Favre stated. “If they are the ones selling cars in Europe (…), we produce in China for them, and we are very pragmatic.”
The firm, which makes a speciality of producing automotive parts resembling bumpers and gasoline tanks, can be diversifying into hydrogen and lighting applied sciences.
Plastic Omnium ranks No. 30 on the Automotive News listing of the highest 100 world suppliers with worldwide gross sales to automakers of $9.7 billion in 2022.