PARIS (Reuters) – Plastic Omnium lowered its annual operating margin and free cash flow outlook on Thursday, citing a tense macroeconomic and market context, causing its stock to fall on the stock market.
The group is now targeting an operating margin of between 370 and 390 million euros (compared to above 400 million euros previously) and a free cash flow between 190 and 210 million euros (compared to above 260 million euros ).
On the Paris Stock Exchange, Plastic Omnium shares fell 15.19% to 11.11 euros at 07:08 GMT, the bottom of the SBF 120 which fell at the same time by 1.17%.
The lowering of targets is considered “surprising” by analysts at JM Morgan “because automobile production is now expected to increase by 7% globally in 2023”.
In a press release, Plastic Omnium referred to a context “marked by high inflation, by slowdowns in production, mainly of electric vehicles among traditional manufacturers, by more frequent shutdowns of assembly lines, and by an intensification of strike in the United States.
The group, however, confirms its objective of economic turnover for 2023 “in strong growth compared to 2022 and outperformance compared to global automobile production”.
Over the quarter, Plastic Omnium posted consolidated revenue of 2.39 billion euros, an increase of 6.8% at constant scope and exchange rates.
(Written by Kate Entringer, edited by Blandine Hénault)
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