Belgian plastics profile manufacturer Deceuninck (Hooglede-Gits; www.deceuninck.com) has reported an operating profit (EBIT) of EUR 23.6m for 2013, up 14% year-on-year. EBIT margin rose to 6.2% in the second half of the year from 2.5 % in the first half. The company said that the improvement resulted from continued control of operating expenses. Net profit doubled to EUR 8.4m compared with 2012. Sales in the year were down 3.7% at EUR 536.5m.

Tom Debusschere, Deceuninck CEO, said: “In 2013, Deceuninck improved net profit and reduced net debt in spite of a challenging economic environment and continued high raw material costs. We strengthened our market position in all four regions with innovative products and competitive wins.”

Sales volumes remained stable, driven by growth in the US, UK, Turkey and emerging markets, Germany and Italy, where demand remained solid all year. Debusschere said that markets in Asia, Africa and Latin America are now being served from the company’s Turkish business, which is becoming an export hub for Deceuninck. Following the opening of a warehouse in India in 2012, the company has also established a warehouse in Santiago / Chile to serve the Latin American market.

Sales performance in the US was strong in a growing market supported by new product launches. In Europe, building markets were more depressed after a harsh winter, although there was a small improvement towards the end of 2013. All markets, except the UK, Germany and Italy, suffered from the sovereign debt crisis and its impact on local economies and consumer confidence, the company said.

Sales in western Europe were EUR 179m, a year-on-year fall of 7%, following declines in Benelux and France due to weak building activity in a climate of reducing public spending, increased taxes, low consumer confidence and continuing high unemployment rates. In the central and eastern Europe region, which includes Germany, 2013 sales decreased 6% to EUR 161m, impacted by a weak economic environment, government austerity programmes and high unemployment rates. Full year 2013 sales in the Turkey and emerging markets region decreased 1% to EUR 121m. In North America sales increased 10% to EUR 75.3m.

The company said that in 2014 it will increase its investment programme, including a 65,000 t/y production facility in Turkey. It added that the macro-economic outlook for 2014 remains uncertain and that, as a result of the mild winter, order intake at the beginning of the year is strong for Europe. In the US it expects continued solid performance. The year started well for the Turkish business, but the weak Turkish lira is expected to impact consolidated sales and operating profit for the region. “This mixed picture does not allow Deceuninck to give a quantified guidance for 2014,” the company said.