Plascar Press Release_ITR 30-09

PLASCAR ANNOUNCES 9M09 RESULTS
Quote (09/30/09)
PLAS3 - R$2.35
Market cap on 09/30/09
R$390 million
Number of Shares
100% Common: 166
million
Investor Relations
Av Amélia Latorre, 01
Jundiaí –São Paulo
CEP: 13.211-000
Board of Directors
Wilbur L. Ross Jr.
André C. do Nascimento
Charles D. Popoff
Francisco N. Satkunas
Maurício T. B. Manfredi
Fiscal Council
Adauto Martins Costa
Mauro Cesar Leschziner
Website:
www.plascargroup.com
IR Contact
Gordiano Pessoa Filho
Chief Financial and Investor
Relations Officer
[email protected]
Phone: +55 11 2152 5101
+55 11 2152 5140
Jundiaí, SP, October 23, 2009 – Plascar Participações Industriais S.A. (Bovespa: PLAS3), Brazil’s
leading manufacturer of automotive parts for the internal and external finishing of light and heavy
vehicles in the Original Equipment Market (OEM), which supplies auto makers in Latin America and
Mercosur, as well as exporting to Mexico, Canada, the U.S., Australia and Europe, announces its
results for 9M09. The Company’s operating and financial information, except where otherwise
indicated, is consolidated and amounts are stated in Brazilian reais.
EBITDA of R$50.2 million (12.6%), with sales of R$399.3
million.
Performance indicators of 9M09:
−
EBITDA of R$50.2 million (12.6% Margin).
−
Net revenue of R$399 million.
−
Gross Margin of R$79 million (19.9%).
Plascar
Performance in the Period
9M09
9M08
Change %
Gross Sales
523,012
581,648
-10.1%
Net Revenue ¹
399,276
443,324
-9.9%
Gross Income
79,417
112,162
-29.2%
Gross Margin %
21.9%
25.3%
-5.4 p.p.
EBITDA
50,238
77,305
-35.0%
EBITDA Margin %
12.6%
17.4%
-4.8 p.p.
41
32,455
-99.9%
Amounts in R$ Thousand
Net Income
¹ To conform to the quarterly information presented on September 30, 2009, R$28,681
from the taxes on sales balance was reclassified under cost of products sold in 2008.
History
Corporate
Structure
The Company started operations in the rubber industry in October, 1963 in Jundiaí, São
Paulo State. In 1973, it began operations in the automotive industry, and in the beginning
of the 1980’s, after several mergers, embarked on a program of growth and
modernization through its subsidiaries, thus becoming the market leader in plastic parts
for the automotive industry.
IAC is a joint venture between WL Ross & Co. LLC (“WLR”) and Franklin Mutual Advisers
LLC (“FMA”), with minority interest held by Lear Corporation, the American auto parts
multinational.
On April 12, 2006, Delaware-based company International Automotive Components
Group Brazil, LLC (IAC Group Brazil, LLC) acquired control of Permali do Brasil Ind. e
Com. Ltda. from Collins & Aikman Europe S.A.
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Legal Structure - IAC Group Brazil
Invesco
100%
WL Ross
& Co.
LLC
66.7%
IAC – Group
International Automotive
Components Group
Brazil LLC
33.3%
100%
Franklin
Mutual
Advisers,
LLC
Minority
Shareholders
Permali do Brasil
Indústria e Comércio
56.52%
0.20%
Plascar Participações
Industriais S.A
43.48%
99.80%
Plascar Ind. de Comp.
Plásticos Ltda.
99.99%
Plascar Ind. de Comp.
Plásticos S.A. Argentina
PLASCAR / APIMEC-SP
IAC GROUP
08/85
Established in October 2005, IAC is present in the world’s leading automotive markets,
with plants in North America, Europe, Asia and South America (through Plascar). With
revenues of approximately US$5.3 billion in 2008, the IAC Group manufactures internal
and external parts for the global automotive industry.
The group’s companies specialize in supplying parts including instrument panels, interior
door panels, bumpers, dashboards, air diffusers, front grilles and tail lights to leading car
manufacturers.
IAC is a co-designer in the development of projects for its customers, offering its knowhow and team of draftsmen and engineers who use state-of-the-art techniques and the
appropriate materials to help conceptualize and, later, design and manufacture the
product.
The IAC Group, is integrated with its subsidiary Plascar strategically through the
participation of IAC Chairman Wilbur L. Ross Jr. on Plascar’s Board of Directors and of
Plascar’s CEO, André Nascimento, on the Board of the IAC Group’s European
operations, as well as operationally through an ongoing process of information exchange
among the executives and management of all of IAC Group’s global operations.
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Global presence of PLASCAR and IAC
EUROPE
Plants – 22
Automakers served20
NORTH AMERICA
Plants – 41
Automakers
served - 5
ASIA
Plants – 3
Joint Ventures – 2
Automakers served
–6
SOUTH AMERICA
Plants - 6
Automakers served
- 17
Operational
Performance
As of 4Q08, due to the financial crisis in the United States, Europe and Asia, the global
automobile & truck industry changed drastically, compelling automakers and auto parts
manufacturers to restructure and cut costs.
Sales in 9M09 were 4.21% higher than in the same period last year (ANFAVEA data).
Production in 9M09 decreased 11.4% over the same period of 2008 (ANFAVEA data).
As a consequence of the decline in vehicle production, the effect on Plascar’s results was
a proportional decrease (9.9%) in the Company's net revenue compared to the same
period in 2008.
Despite sales recovery during the past few months, 9M09 still recorded a strong decline
in production year-on-year.
Net Revenue
Net revenues in 2009 totaled R$399.3 million, a 9.9% decrease year-on-year. However,
Net Revenue decreased on 5.9% quarter-on-quarter, to R$151,558 in 3Q09 from
R$161,097 in 3Q08, suggesting a slight market recovery in the last 90 days.
Net Revenue (R$ Thousand )
09/08
-9.9%
443,324
399,276
09/08
-5.9%
161,097
3Q08
151,558
3Q09
9M08
9M09
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Net Revenue Breakdown
in 9M08
R$ 443,324 thousand
110,130
25%
Net Revenue Breakdown
in 9M09
R$ 399,276 thousand
57,156
13%
73,334
18%
25,934
6%
77,622
18%
172,482
38%
Bumpers
Gross Income
vs. Gross Margin
42,572
11%
Panels
29,792
7%
87,337
22%
166,241
42%
Interior Door Panels
Lights
Others
Gross margin in 9M09 was 19.9%, compared to 25.3% in 9M08. Gross income totaled
R$79.4 million in 9M09.
Some of the principal factors behind the Gross Margin decline that began in 4Q08 to
reach the current Gross Margin level are: a) commencement of supply to new customers
(particularly Japanese and French automakers); b) entry into new market segments (SMC
truck parts, chrome plating parts, airfoil/air deflectors, headlights and window lifters); c)
renegotiation of old contracts; d) fulfillment of clauses regarding the automatic transfer of
raw material prices to customers; and e) the natural increased dilution of fixed costs
directly resulting from growth in operations, already discounting the effects of market
retraction in the 4Q08.
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Amounts in Thousands of R$
R$443,324
R$399,276
R$161,097
R$151,558
R$112,162
R$79,417
25.3%
25.2%
R$43,791
28.9%
3Q08
3Q09
9M08
R$40,598
19.9%
9M09
Net Income
Gross Income
.............. Gross Margin %
EBITDA Margin
vs. EBITDA %
The Company’s EBITDA totaled R$50.2 million in 9M09. EBITDA margin was 12.6% in
9M09, compared to 17.4% in 9M08, driven chiefly by by the change in the MIX and the
lower volume of high value-added products.
EBITDA (R$ thousand) X EBITDA margin %
77,305
17.4%
09/08
-35.0%
50,238
09/08
-13.8%
12.6%
29,212
18.1%
25,188
16.6%
3Q08
Net Income
(Loss)
3Q09
9M08
9M09
Net income totaled R$0.04 million in 9M09, representing a year-on-year decrease of
99.9%.
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Net Income (R$ Thousand)
32,455
17,453
41
9M07
Human
Resources
9M08
The number of employees
September 30, 2008).
on
September
9M09
30,
2009
was
3,444
(3,381
on
* Public acknowledgement – Personnel Management
1) “Career Value” Award – Best in people management (from 2,001 to 4,000
employees)
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In 2008, Plascar ranked 1 in the survey “The Best in People Management” done by
Valor Econômico newspaper with Hewitt Associates, world leader in human resources
consulting and outsourcing services.
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The survey was published in the 6 issue of Valor Carreira magazine.
2) “Best Place to Work in Latin America” Award
On June 15, 2009, Plascar received this award for the second consecutive year, in an
event held at the Modern Art Museum in São Paulo. On September 23, Plascar attended
a ceremony in Buenos Aires, Argentina, that gathered the 23 Brazilian companies on the
list.
Plascar received this award for the first time in June, 2008 in Monterrey, Mexico. The
ranking was prepared by the renowned consulting company Great Place to Work
Institute, which assessed 1,100 companies in nine countries.
th
3) Plascar ranks 4 as the Best Company to Work For – Época magazine
In 2009, for the third consecutive year, Plascar was among the 100 Best Companies to
Work For in Brazil, according to Época magazine and the Great Place to Work Institute
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Brazil. Plascar was elected the 4 best company in the country. The prize was received in
August in São Paulo at a ceremony organized by Editora Globo. In 2008, Plascar was
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rd
ranked 12 , and in 2007 it was ranked 23 .
th
4) Plascar is the 4 best company for executives to work for
According to a survey conducted by Época Negócios magazine and the Great Place to
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Work Institute Brazil, in 2009 Plascar was named the 4 best company for executives to
work in Brazil.
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5) Plascar ranks 9 in Guia Exame Você S/A/Exame
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th
In September, 2009 in São Paulo, Plascar was awarded for ranking 9 among the 150
Best Companies to Work For in Brazil according to Guia Exame Você S/A. For the fourth
consecutive year, the company made the list sponsored by Fundação Instituto de
Administração - FIA.
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Plascar is ranked 3 among automotive industry companies included on the list.
6) Plascar is among the companies with the 20 Best Human Resources Practices
In 2008 and 2009, Melhor – Gestão de Pessoas magazine placed Plascar among the
companies with the 20 Best Human Resources Practices, according to the Great Place to
Work Institute. The company was distinguished in the item Confidence.
The award is a special acknowledgment for people managers of the 100 Best Companies
to Work for in Brazil. Only 20 companies in 20 different categories are awarded.
st
7) Plascar is the 41 most respected Brazilian company in terms of Sustainability
According to Imprensa magazine, which evaluated the 50 most featured companies in the
st
media with regards to sustainability, Plascar was considered the 41 most respected
Brazilian company.
8) Plascar is among the 100 best companies in corporate citizenship
In a survey conducted by Gestão RH magazine, Plascar was identified as one of the top
100 Brazilian companies in corporate citizenship, with special focus on social
responsibility.
nd
9) Plascar wins 2
place at the SESI Quality at Work Award
In 2008, Plascar was, once again, among the best companies at the SESI Quality at
nd
Work Award (PSQT) at the state level. As in 2007, the company was ranked 2 in São
Paulo and Minas Gerais states, through the Jundiaí and Varginha units, respectively. The
survey assesses compliance with the legal obligations and social needs that aim to
humanize the workplace and the surrounding communities.
10) Plascar receives the FORMARE Partner Company seal
Plascar was the 2nd Brazilian company to receive the FORMARE Partner Company seal
granted by Fundação Iochpe.
The seal recognizes the work performed by Plascar in offering personal and professional
qualification to the young students of the project.
th
In 2009 Plascar will graduate its 7 FORMARE class.
The social-cultural project for local underprivileged high school students was developed
by Fundação Iochpe and is maintained by several companies throughout Brazil. These
youths attend classes given by the employees, who share their knowledge and personal
experiences in classrooms located within the Company’s facilities. The cirriculum is
determined by MEC according to the professional training course offered. 250 students
from the FORMARE Project have already benefitted from the Plastic Production Operator
course offered by Plascar.
11) Plascar’s HR is Top of Mind 2009
Plascar’s Human Resources Officer, Ana Lúcia de Aguiar Zacariotto, is one of the five
finalists for the Top of Mind RH 2009, an award promoted by Fênix Editora.
* Public acknowledgement – Technological Innovations
12) SAE Brasil gives Materials award to Plascar’s engineering officer
José Donizeti da Silva, Plascar’s engineering officer, received the award in the Materials
category from the Society for Automotive Engineering – SAE Brasil.
13) Plascar receives Technological Innovation award from SAE Brasil.
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On October 9, 2008, during the closing banquet of the 17th International Automotive
Technology Congress and Exhibition – SAE Brasil 2008 held in São Paulo, Plascar
received the Technological Innvoation award along with Bosch and Delphi.
The award recognized the Company’s investments in major innovations for plastics in the
automotive industry, especially the polymer wheel and the concept car. Both were
presented by Plascar during the 2008 SAE Brasil, an event held at Expo Center Norte –
São Paulo from October 7 to 9.
Congress and Exhibition visitors, along with SAE Brasil engineers, were responsible for
choosing Plascar.
14) 2008 Best in the Automotive Segment Award 2008 – Technological Innovation
Plascar was the winner of the Autodata 2008 Best in the Automotive Segment Award in
the Technological Innovation category.
* Public acknowledgement – Investor Relations and Financial Management
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15) Plascar receives APIMEC/SP fidelity seals – 1 and 2
year
On March 30, 2009 Plascar met with its investors to present the 2008 results.
nd
This was the 2 meeting with investors at APIMEC/SP.
16) The 2007/2008 Best and Biggest – Exame Magazine
On July 7, 2009, Plascar took part in the 2008 Best and Biggest awards ceremony.
Sponsored by Exame magazine, the award is given to Brazil’s 1,000 best and biggest
companies.
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This year, Plascar ranked 531 (546 in 2007).
17) Plascar is one of the Melhores da Dinheiro (Best of Dinheiro Magazine)
For the second year, in 2009 Plascar made the list of the best Brazilian companies
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according to a survey by IstoÉ Dinheiro magazine. The Company was ranked the 4 best
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company in the autoparts industry, 5 best in the industry regarding Financial
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Sustainability, and 3 in Corporate Governance, Innovation and Quality. Additionally, it
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rd
ranked 5 in Social Responsibility and 3 in Human Resources in its industry.
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