PET preform and bottle manufacturer Resilux (B-8230 Wetteren; www.resilux.com) has revised downward its profitability expectations for 2004, due to poor figures in the first three quarters. The Belgian company now expects full-year sales to be around 15 % below the 2003 level of EUR 159.3m. Earnings also will be lower.

According to Resilux, the cool summer weather in Europe reduced demand and left it sitting on substantial inventories. While the company managed to pass on steep increases in raw materials prices, customers responded by purchasing only the number of bottles and preforms they absolutely needed. This was particularly apparent in the fourth quarter, which is seasonally weaker in any case.

In Germany, business was particularly difficult because of the legal situation surrounding the bottle deposit. Especially in the second half year, the returnable bottle segment performed well below expectations. Several customers were unable to take contractually agreed quantities in the planned time frame, and this led to under-utilised capacities. The strong euro also had a negative effect on business outside Europe.

During 2005, Resilux intends to introduce new products and applications, and thus sees itself as well-positioned. Sales activities in some regions will be intensified, new markets further developed and existing capacities better utilised. After implementing a comprehensive investment program from 2001 to 2003, the Belgian company intends to concentrate in the next few years on reducing its liabilities.