CARADON
Profits down 25% for 1995 / Difficult building markets expected to continue
The difficult nature of the building products business in Europe was reflected in a 25% drop in profits before tax for Caradon plc (24 Queens Road, Weybridge, GB-Surrey KT13 9UX) in 1995. It was attributed to declines in sales volumes in North America in the first half of the year, and in Continental Europe and the United Kingdom during the second half, as well some increased price competition. Turnover was up by 5% to £ 2,093.7m with profit before tax of £ 155.4m.
During the year the group strengthened its position in its core building products businesses with the acquisition of a 50% stake in the leading German door and window manufacturer Weru AG (D-73635 Rudersburg) – see Plasteurope.com No 7. Weru contributed £ 12m to the Group's operating profit but a sharp fall in volumes towards the end of last year has lead to restructuring to reduce costs. Particularly difficult conditions in the US market lead to Caradon's doors and windows business making an overall operating loss of £ 3.4m for 1995 on turnover of £ 489.9m.
Its plumbing division, which includes pipe producer Caradon Terrain (Aylesford, GB-Maidstone ME20 7DJ), also experienced particularly difficult market conditions with turnover down 3% to £ 386.8m and operating profit reduced 26% to £ 37m. Matters were not helped by raw material price increases which could not be passed on.
The Caradon Group are also involved in plastics automotive component manufacture and general trade moulding through its subsidiaries Caradon Rolinx (Ledson Road, Wythenshaw, GB-Manchester M23 9WP), Caradon Elliott (Bescot Crescent, GB-Walsall WS1 4NG) and Caradon L&P (Westwood Industrial Estate, Ramsgate Road, GB-Margate CT9 4JT). This division managed to increase turnover by 12% last year to £ 279.4m but commissioning difficulties of new equipment at the Caradon Rolinx's Banbury plant resulted in manufacturing inefficiencies and in certain one-off costs which impacted on profitability, down 30% to £ 11.3m.
The group do not expect any immediate improvement in the trading conditions for its core markets and therefore continue to take action to reduce its cost base.
READER SERVICE: Detailed press release on the Caradon results 1995: PIE-No. 39270 – Annual Report 1995 Caradon plc: PIE-No. 39271.
During the year the group strengthened its position in its core building products businesses with the acquisition of a 50% stake in the leading German door and window manufacturer Weru AG (D-73635 Rudersburg) – see Plasteurope.com No 7. Weru contributed £ 12m to the Group's operating profit but a sharp fall in volumes towards the end of last year has lead to restructuring to reduce costs. Particularly difficult conditions in the US market lead to Caradon's doors and windows business making an overall operating loss of £ 3.4m for 1995 on turnover of £ 489.9m.
Its plumbing division, which includes pipe producer Caradon Terrain (Aylesford, GB-Maidstone ME20 7DJ), also experienced particularly difficult market conditions with turnover down 3% to £ 386.8m and operating profit reduced 26% to £ 37m. Matters were not helped by raw material price increases which could not be passed on.
The Caradon Group are also involved in plastics automotive component manufacture and general trade moulding through its subsidiaries Caradon Rolinx (Ledson Road, Wythenshaw, GB-Manchester M23 9WP), Caradon Elliott (Bescot Crescent, GB-Walsall WS1 4NG) and Caradon L&P (Westwood Industrial Estate, Ramsgate Road, GB-Margate CT9 4JT). This division managed to increase turnover by 12% last year to £ 279.4m but commissioning difficulties of new equipment at the Caradon Rolinx's Banbury plant resulted in manufacturing inefficiencies and in certain one-off costs which impacted on profitability, down 30% to £ 11.3m.
The group do not expect any immediate improvement in the trading conditions for its core markets and therefore continue to take action to reduce its cost base.
READER SERVICE: Detailed press release on the Caradon results 1995: PIE-No. 39270 – Annual Report 1995 Caradon plc: PIE-No. 39271.
15.06.1996 Plasteurope.com [20026]
Published on 15.06.1996