French auto supplier Plastic Omnium reports strong growth, shares rise

Opmobility SE

24/07/2023 09:25

PARIS, July 24 (Reuters) - Automotive components
manufacturer Plastic Omnium  PLOF.PA  reported a 35% increase in
revenue for the first half of the year on Monday, lifting its
shares to the top of France's SBF 120  .SBF120  index. 
    Plastic Omnium confirmed its annual objectives, buoyed by a
new record of orders over the past six months. Shares in the
company were up close to 7% in early Paris session trade. 
    The company also flagged in an earnings call it anticipates
price battles among automakers in the electric vehicle (EV)
sector as they have to deal with a slowdown in orders,
particularly in Europe, which will result in clients adopting a
more aggressive pricing policy than in recent quarters. 
    Automakers will have no choice but to follow a trend of
lowering prices if they want to maintain the necessary volumes,
said Chief Executive Laurent Favre.
    Chinese automakers and U.S. company Tesla  TSLA.O , known
for their competitive pricing, continue to perform well with
high volumes, Favre said. 
    "We are fortunate to work with everyone, which means we also
work with those who export," Favre said. "If they are the ones
selling cars in Europe (...), we produce in China for them, and
we are very pragmatic."
    The company, which specializes in producing automotive
components such as bumpers and fuel tanks, is also diversifying
into hydrogen and lighting technologies. 

 (Reporting by Gilles Guillaume, writing by Tassilo Hummel,
Editing by Louise Heavens)
 ((tassilo.hummel@thomsonreuters.com ; Twitter handle:
@tassilo_hummel;))