Plastic Omnium set for worst day ever after guidance cut

Opmobility SE

26/10/2023 08:39

** Shares in Plastic Omnium  PLOF.PA  plunge more than 17%,
set for their worst day ever, after the French plastic
processing group cuts its FY guidance, following a slight miss
in Q3 sales
    ** The company announces adjusting its FY operating margin
target to between 370-390 million euros ($389.91-410.98
million)(vs 'above EUR 400 mln' previously) as well as its FCF
target to between EUR 190-210 million (vs 'in excess of EUR 260
mln' previously)
    ** "A rare negative surprise," notes J.P.Morgan
    ** "The context is marked by high inflation, slowdowns in
production mainly of electric vehicles of traditional
automakers, more frequent assembly line stoppages, and an
intensification of the strike in the United States," says JPM
    ** Plastic Omnium revenue for Q3 is at 2.39 billion euros
($2.52 billion), up 7% organically
    ** "The slight miss was driven by a lower contribution from
Varroc Lighting in the quarter - offsetting a stronger
Industrial revenues development," adds JPM
    ** JPM expects more than 10% downward revisions in consensus
operating profit expectations
    ** The stock is a the bottom of France's SBF 120 index
 .SBF120 


($1 = 0.9489 euros)

 (Reporting Clement Martinot)
 ((Clement.martinot@tr.com))