Sales at profile producer Deceuninck (Hooglede-Gits / Belgium; www.deceuninck.com) dropped 4.1% to just under EUR 630m in 2008 and the group reported a net loss of EUR 37m, compared with a profit of EUR 5m in 2007. The poor performance was not helped by write-downs of EUR 13.1m, one-off restructuring expensive of EUR 5.2m and a EUR 20.2m negative impact from exchange rate movements. EBIT tumbled to a loss of EUR 23m versus a profit of EUR 18m in 2007. According to the Belgian media, the group has introduced short-time working for between 125 and 250 employees at three sites. A spokesman for the company commented. “We plan from week to week”.

Pierre-Alain de Smedt, chairman of the board of directors, reports that demand increased in Germany, France, the Benelux countries and most eastern European growth states until the end of October. Since the start of November there has been significant pressure in all markets as a result of the recession. Sales dropped a further 32% in the USA (after translation into euros), while sales in Turkey slipped 3% despite 3% higher volumes.

The group’s new CEO Tom Debusschere expects 2009 to be a difficult year. Demand is expected to drop in most markets. Further savings are being introduced in response to this. Operations are to be “optimised” in the USA, the UK and Poland according to Debusschere, but he did not give further details.

Deceuninck is still in negotiations with its major shareholders on a possible restructuring of its finances, including a capital increase. The negotiations are going well according to de Smedt. A short-term plan has been agreed and could lead to a project to strengthen the group's financial position.