Profile manufacturer Deceuninck (Hooglede-Gits / Belgium; www.deceuninck.com) has reported first half 2010 sales up 11% year-on-year at EUR 265m thanks to improved demand, particularly in the second quarter, which saw sales jump by 14% to EUR 156m. Deceuninck CEO Tom Debusschere said: “The rise in demand continues to be supported by government incentives and stricter building codes, aiming at reducing energy waste and CO₂ emissions. Demand recovery is now seen in almost all countries with exception of UK, Spain and some smaller markets in eastern Europe.”

In western Europe, second quarter sales saw a steady year-on-year increase compared with a weak start to the year. Sales in the period rose by 8.2% to EUR 60.4m, with strong demand in the Benelux countries, France and Italy. UK and Spain showed weaker demand. Sales in the first half rose by 3.9% to EUR 110m.

In central and eastern Europe, including Germany, demand began to recover from mid-March following a winter-driven weak first quarter. Sales in the second quarter increased by 9.9% year-on-year to EUR 45.7m. Sales growth was triggered mainly by strong demand in Russia and, from the second half of the quarter, in Germany. Sales rose in almost all countries. Foreign exchange against the Polish zloty, Czech crown and Russian ruble had a favourable impact on sales, the company said. First half sales increased by only 2.6% year-on-year to EUR 71.8m.

Second quarter 2010 sales increased by 30% year-on-year to EUR 30.6m in Turkey, albeit at a lower rate than the first quarter. During the period, the Turkish lira performed strongly against the euro and at constant exchange rates sales growth was 18%. First half sales were up 38% year-on-year (28% at constant exchange rates) at EUR 51.7m. Both domestic demand and demand from Turkey’s export markets remained strong, Deceuninck said.

Second quarter 2010 sales in the US stood at EUR 19.4m, up 21% year-on-year (13% at constant exchange rates). During the first half of the year sales rose by 22% (19.9%) to EUR 32.1m. Demand from the residential renovation segment remained strong throughout the quarter, the company said, with sales growth supported by a strong US dollar against a weaker euro. Deceuninck expects the growth rate to slow down considerably from June 2010 onwards as a result of the discontinuation of tax incentives for new homes and uncertainty over the economy and home improvement spending.

Looking to the future, Debusschere said: “We continue to be cautious: year-on-year growth rate started to slow down in the US towards the end of the [second] quarter. The impact of reduced government spending on renovation expenditures remains unclear. Long term, energy-efficient construction and renovation will continue to grow as an engine of our industry. In June 2010, the new European Energy Performance on Buildings Directive (EPBD) was published. By the end of 2020 all new buildings in Europe will be 'nearly zero' energy buildings. PVC windows remain the ‘best value’ solution for energy savings.”

PVC and additives costs are now in their sixth consecutive month of increase, and remain cause for concern, he added. For the full year 2010 the company expects a single digit sales increase and says it remains on schedule to return to profitability.