PARIS -- Plastic Omnium reported a profit in the second half of 2020, as global auto production rebounded.
The supplier on Thursday said it had a second half net profit of 152 million euros ($183 million), compared with a net loss of 404 million euros in the first half.
For the year, Plastic Omnium reported an operating margin of 1.7 percent on sales of 7.07 billion euros, compared with a margin of 6 percent on sales of 8.49 billion euros in 2019.
Plastic Omnium said it hoped to return by 2021 to the same levels of profit and free cash flow that it had in 2019. It is targeting free cash flow of at least 220 million euros this year.
The supplier offered a conservative 2021 production forecast of 9 percent global growth, based on the COVID-19 situation, fallout from Brexit and the semiconductor shortage. Analyst firm IHS Markit, whose data is used by many automotive companies, is forecasting growth of 14 percent.
CEO Laurent Favre said the company, which makes fuel systems, exterior panels and front-end modules, would benefit from growing demand for electric vehicles.
"Technological changes had already started to emerge, and their pace accelerated, particularly regarding the shift to electrified vehicles," Favre said in a news release. "Today, we have the ability to innovate, a diversified customer portfolio and a solid financial position, enabling us to turn this disruption into growth."
The supplier said that 5 percent of its revenue in 2020 came from battery-electric or fuel cell vehicles, and is targeting 17 percent in 2025. Plastic Omnium is focusing on the fuel cell market, with a goal of 3 billion euros in revenues by 2030.
