HT Troplast AG (D-53839 Troisdorf) has acquired KBE Kunststoffproduktion GmbH (D-66748 Dillingen) in its entirety (see PIE 12,1999). The two companies together recorded sales of around EUR 307m (HT 184m, KBE 123m) in the window profile sector in 1998. As Werner Heep, board chairman of HT Troplast, explained to journalists in Düsseldorf, the merger, which has already been approved by the cartel office, will mean a share of around 22% of the German window profile market and around 16% of the European window profile market, putting the company amongst the three top players on the market in Europe.

The past business year at HT Troplast AG, which belongs to Rütgers AG (Postf. 103154, D-45031 Essen), was marked by highly differing market developments. While the German construction industry suffered contraction, the European construction markets, and particularly those in East and South East Europe, underwent favourable development. The international automotive branch reached the peak of its economic cycle, and the sports and leisure markets achieved further global growth. Compared with 1997, HT Troplast AG experienced a decline of some EUR 16.4m in sales to around EUR 240m in the year under review, due essentially to the sale of its flooring activities to the French floor covering producers, Gerflor. The purchase of Knipping Extrusionstechnik GmbH (D-46499 Hamminkeln) had the effect of increasing sales. Adjusted to compensate for these structural effects, domestic sales increased through core business with “Trosifol” and “Trocellen” and sales abroad through the above-average rise in East European, North American and Asian business. The clear increase in exports to non-EU countries also contributed towards the growth in sales. This led to the percentage of foreign business increasing to 59% in 1998, compared with 51% in 1997.

Despite the decline in the construction industry in Germany, and particularly in the window market, HT Troplast AG was able to increase its profit on ordinary activities by about EUR 1m to some EUR 17.4m. Better-than-planned-for results from “Trosifol” film for laminated glass, “Trocellen” foams and “Dynos” vulcanised fibre all contributed towards this success. Yet the EUR 7.2m or so income from investments also made their mark too. Business in “Trocal” windows and door profiles developed unsatisfactorily on account of the declining average sales revenue.

Sales of the HT Troplast Group rose considerably, to some EUR 375.3m, thanks to the acquisition of the Italian Finex activities and Knipping Extrusionstechnik. With the purchase of the Finex Group, HT clearly expanded its market position in the production and further processing of polyethylene foam in Italy and took over market leadership in Europe. All in all, the HT Group achieves 69% of its sales through foreign business, with by far the greatest proportion of this coming from Europe.

The subgroup was set up in 1997 and, in 1998, comprised HT Troplast AG, HT Italia SpA, HT Italia Holding Srl, Trocellen Italia SpA, HT Plasticos S.A. and the Sika Trocal AG joint venture (pro-rata). Subgroup sales increased by 5% in 1998 to around EUR 293.5m, while the pre-tax result rose slightly to EUR 21.5m. The difficult situation on the German building market meant that sales and net earnings for Sika Trocal sealing products lagged behind figures for the previous year and behind the planned figures.

Since a slight downward trend is expected in the German construction industry in 1999 too, HT is once again looking for opportunities to expand its foreign business and pursue its strategy of extending profile and foam activities. The acquisition of the system technology business of Knipping Fenster-Technik GmbH (D-46499 Hamminkeln) can be seen in this context; this will complement the “Trocal” window accessories program.

READER SERVICE: 1998 Financial Report from HT Troplast AG: PIE-No. 43596.