TESSENDERLO
Strength in chemicals business / Construction slump hits plastics converting in Europe and US
Tessenderlo (Brussels / Belgium; www.tessenderlo.com) has reported recurring operating profit (REBIT) in 2008 of EUR 239m, a year-on-year increase of 57%. Sales rose by 15% year-on-year to EUR 2.76 bn.
The company’s chemicals segment, which includes its VCM and PVC business, posted a record year and was responsible for the overall company growth in both REBIT and sales. The segment reported 2008 REBIT of EUR 197m, a year-on-year increase of EUR 115m, which is more than the company’s total gain for the year. Sales in the chemicals segment increased to EUR 1.40 bn in 2008 from EUR 1.03 bn in 2007. However, high profitability in chlor-alkali products was insufficient to compensate fully for the lower margins in PVC activity, which had a difficult year, the company said.
The plastics converting segment reported a 55% year-on-year fall in REBIT to EUR 22.4m in 2008 on sales of EUR 776m, down from EUR 816m in 2007. The profiles business unit was hit by the slump in the construction market and saw sales fall by 7% year-on-year. In the UK, Tessenderlo managed to increase its market share through expansion of its distribution network, however, the company said that the market in mainland Europe was particularly difficult. Sales decline in the US was limited in comparison with the general market downturn, but the business reported a small operating loss for the year.
Despite the economic environment, the plastic pipe systems business unit managed to limit the loss of revenue in 2008 in comparison with the preceding year. Activities were “satisfactory” in the Benelux countries, while in France the market dropped sharply in the second half of the year. In the UK, the market also felt the impact of the economic crisis; however, sales expressed in GBP remained at their 2007 level. Sales in Poland increased by 20% and productivity also improved slightly. The business unit expanded late in 2008 through the acquisition of Nyloplast Europe, a subsidiary of Nyloplast (Gravendeel / The Netherlands; www.nyloplast.nl) – see Plasteurope.com of 29.10.2008.
Tessenderlo said that it is difficult to provide a business forecast for 2009 given the current macroeconomic uncertainty. The first quarter of 2009 has proved difficult, with poor sales. Additionally, for the most part, current sales are of products that were manufactured in 2008.
e-Service:
Detailed press release from Tessenderlo Group with figures for fiscal 2008 as a PDF document (133 KB)
The company’s chemicals segment, which includes its VCM and PVC business, posted a record year and was responsible for the overall company growth in both REBIT and sales. The segment reported 2008 REBIT of EUR 197m, a year-on-year increase of EUR 115m, which is more than the company’s total gain for the year. Sales in the chemicals segment increased to EUR 1.40 bn in 2008 from EUR 1.03 bn in 2007. However, high profitability in chlor-alkali products was insufficient to compensate fully for the lower margins in PVC activity, which had a difficult year, the company said.
The plastics converting segment reported a 55% year-on-year fall in REBIT to EUR 22.4m in 2008 on sales of EUR 776m, down from EUR 816m in 2007. The profiles business unit was hit by the slump in the construction market and saw sales fall by 7% year-on-year. In the UK, Tessenderlo managed to increase its market share through expansion of its distribution network, however, the company said that the market in mainland Europe was particularly difficult. Sales decline in the US was limited in comparison with the general market downturn, but the business reported a small operating loss for the year.
Despite the economic environment, the plastic pipe systems business unit managed to limit the loss of revenue in 2008 in comparison with the preceding year. Activities were “satisfactory” in the Benelux countries, while in France the market dropped sharply in the second half of the year. In the UK, the market also felt the impact of the economic crisis; however, sales expressed in GBP remained at their 2007 level. Sales in Poland increased by 20% and productivity also improved slightly. The business unit expanded late in 2008 through the acquisition of Nyloplast Europe, a subsidiary of Nyloplast (Gravendeel / The Netherlands; www.nyloplast.nl) – see Plasteurope.com of 29.10.2008.
Tessenderlo said that it is difficult to provide a business forecast for 2009 given the current macroeconomic uncertainty. The first quarter of 2009 has proved difficult, with poor sales. Additionally, for the most part, current sales are of products that were manufactured in 2008.
e-Service:
Detailed press release from Tessenderlo Group with figures for fiscal 2008 as a PDF document (133 KB)
23.03.2009 Plasteurope.com [213070]
Published on 23.03.2009
German version of this article...