Plastic Omnium reported consolidated net profit of EUR8m (US$11.3m) in the six months to the end of June, compared to EUR2.5m (US$3.5m) a year ago due to cost cuts, lower capital expenditure and working capital.
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The company said that financial troubles at General Motors, Chrysler and Saab Automobile had not affected its interim earnings. Net debt was EUR440m (US$625m) by the end of the first half with net debt to equity of 99%. This compared to net debt of EUR560m (US$796m) and debt to equity of 128% at the end of last year.
It added it expected revenues for the second half to come in lower than in the first half with a slowdown in automobile business expected despite signs of an upturn in production. Heavy turbulence in the car industry put pressure on revenue, which fell by 19% in the first half to EUR1.18bn (US$168bn) Plastic Omnium said in a statement.
Production of passenger cars and trucks plummeted globally by 25 to 50% in the first half, with European customers either delaying or reducing their capital spending and operating expenses, the company added.
