PU foam specialist Recticel (Brussels / Belgium; www.recticel.com) said lower sales levels and, to a smaller extent, an unfavourable product/market-mix, led to a 79% year-on-year fall in EBITDA to EUR 13.6m in 2013. Earnings were unfavourably affected by non-recurring elements totalling EUR 45.1m, including a EUR 27.0m fine by the European Commission for the company’s role in a price fixing cartel – see Plasteurope.com of 31.01.2014 – and EUR 14.7m in restructuring charges and provisions incurred in the implementation of the company’s rationalisation plan. Sales in the year fell by 6% to EUR 977m.

The economic environment in Europe, which accounts for 94% of Recticel’s sales, remains volatile and difficult to predict, although it is improving slightly, the company said. Persisting low consumer confidence continues to weigh on the company’s end-use markets, which are all geared towards slow moving consumer and investment goods, it added.

Sales in the company’s flexible foams and insulation businesses were broadly stable compared with 2012, although the insulation segment delivered a lower profit due to softer European construction activity leading to increased competition. Recticel's automotive activities saw an 11% fall in sales, accounting for 51% of the reported overall sales reduction. Third party bedding sales were 5.5% lower than in 2012 on a like-for-like basis.

The most significant measure taken in the company’s rationalisation plan was the decision to significantly downsize the activities at its Rheinbreitbach / Germany site, leading to a reduction of 150 jobs out of 178 at the facility – see Plasteurope.com of 24.01.2013. The company said that this is the final significant measure needed to reach an optimised footprint for its automotive interiors activities.

The flexible foams operations in the UK were streamlined by closing the converting unit at Nelson, leading to 95 redundancies – see Plasteurope.com of 18.04.2013. Additional restructuring measures took place at its Eurofoam (Vienna; www.eurofoam.eu) joint venture and closure costs were incurred at its flexible foams converting plant in La Eliana / Spain – see Plasteurope.com of 04.12.2013 – and following the transfer of some activities from The Netherlands to the UK. Additionally, the company’s bedding operations in Germany were streamlined.

Looking forward, Recticel said that, given the persisting volatility in the performance of the markets in which it is active, it is too early to provide a forecast for 2014. It plans to give more details at its annual general meeting on 27 May 2014.