Shares of French automotive component manufacturer, Plastic Omnium, experienced a significant drop on Thursday, falling by 18.3% to EUR10.69 (EUR 1 = $1.05). This marked the company's lowest share price level since March 2013. The precipitous decline comes in the wake of the company's downward revision of its financial outlook for 2023, a decision influenced by factors such as the ongoing U.S. strike and a slowdown in electric vehicle production.
The revised operating margin target for 2023 is now set between EUR370 million and EUR390 million, marking a substantial decrease from the company's initial estimate of over EUR400 million. Alongside this, the forecast for free cash flow has also been significantly lowered to between EUR190 million and EUR210 million, down from an earlier projection of above EUR260 million.
Despite these recent setbacks and revised financial projections, Plastic Omnium has reported positive developments. The company recorded a year-on-year revenue increase of 12% in Q3. Furthermore, it continues to maintain an optimistic outlook for the future, anticipating robust economic revenue growth in 2023.
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