DECEUNINCK
Corner may be turned as second quarter 2009 shows profit / Extensive restructuring during first half-year
Plastic profile manufacturer Deceuninck (Hooglede-Gits / Belgium; www.deceuninck.com) has reported an operating profit of EUR 8.9m for the first half of 2009, compared with EUR 18.3m in the same period in 2008. However, the company incurred restructuring costs of EUR 11.2m in the period and operating profit from normal activities (recurring EBITDA) was EUR 20.1m, an improvement of 3% on the first six months of 2008. Sales in the period fell by 23% year-on-year to EUR 239m. The company reported a net loss of EUR 8.9m in the first six months of 2009, a 50% year-on-year increase, but said the second quarter had shown a profit of EUR 4.4m, albeit down 24% on the first half of 2008. Operating profit in the second quarter was EUR 14.7m, compared with an operating loss of EUR 5.8m in the first three months of 2009.
Geographically, sales in western Europe declined by 15% compared with the first six months of 2009. However, eastern Europe was hit hardest by the economic crisis and showed a fall in sales of 39% year-on-year. In Turkey sales dropped by 22%, due primarily to reduced demand from the Middle East and northern Africa, compounded by a weak Turkish lira. The sales decline in the US was limited to 12%, due in part to a strengthened dollar.
Between October 2008 and June 2009 the company reduced employment by 449 posts and closed three plants in Little Rock, Arkansas / USA, Wroclaw / Poland and Dottignies / Belgium. Production activities in Calne / UK were cut by half.
The company is about to finalise the agreement on the overall restructuring of its loans with the group of bilateral bankers and noteholders – see Plasteurope.com of 27.05.2009. Deceuninck CEO Tom Debusschere said the company’s operational and financial restructuring had led to improvements that were clearly visible in the second quarter of 2009. “Deceuninck is turning a profit again during the last few months, and this at a monthly sales volume of 20% below last year’s level. We notice the first signs of a bottoming out in the United States and the United Kingdom,” he added.
Geographically, sales in western Europe declined by 15% compared with the first six months of 2009. However, eastern Europe was hit hardest by the economic crisis and showed a fall in sales of 39% year-on-year. In Turkey sales dropped by 22%, due primarily to reduced demand from the Middle East and northern Africa, compounded by a weak Turkish lira. The sales decline in the US was limited to 12%, due in part to a strengthened dollar.
Between October 2008 and June 2009 the company reduced employment by 449 posts and closed three plants in Little Rock, Arkansas / USA, Wroclaw / Poland and Dottignies / Belgium. Production activities in Calne / UK were cut by half.
The company is about to finalise the agreement on the overall restructuring of its loans with the group of bilateral bankers and noteholders – see Plasteurope.com of 27.05.2009. Deceuninck CEO Tom Debusschere said the company’s operational and financial restructuring had led to improvements that were clearly visible in the second quarter of 2009. “Deceuninck is turning a profit again during the last few months, and this at a monthly sales volume of 20% below last year’s level. We notice the first signs of a bottoming out in the United States and the United Kingdom,” he added.
07.09.2009 Plasteurope.com [214265]
Published on 07.09.2009
German version of this article...