In its assessment of 2008 and the present challenging business situation, Greiner (Kremsmünster / Austria; www.greiner.at) reports that its strategy of product and market diversification and its decentralized management structure are proving their worth. This family-owned business run by Dr. Axel Greiner and Dr. Peter Greiner grew sales 4.2% to EUR 1.12 bn in 2008 despite downside factors, especially in the fourth quarter which was impacted by massive destocking and currency losses running into millions. EUR 860m of sales (EUR 820m in 2007) came from Greiner Holding, which comprises the packaging, foams and machinery subsidiaries and EUR 256m came from the laboratory equipment firm Greiner Bio-One (EUR 242m in 2007).

Greiner considers itself well-positioned for this year, resting on a sound equity base built up over the past six years. The company made timely capacity adjustments and has introduced further measures to mitigate falling demand.

As a supplier to the construction industry, where investment came to a virtual standstill when the US property bubble burst, machine-maker Greiner Tool.Tec was the first of the group’s companies to be hit by the downturn. It was soon joined by Greiner Perfoam and Eurofoam, both of which have a strong presence in the automotive sector. Finally, in the fourth quarter all other divisions started to feel the effects of the crisis, at least indirectly.

Greiner predicts that prices and demand will drop further in 2009 and probably in the following years as well. It will therefore be scaling back capital spending slightly. Its attention is focused particularly on North America, where a continuation of the recession would adversely affect its export-oriented companies. If the major world economies manage to cushion the economic downturn in time, the hope is that lower energy and fuel prices would enable consumers to spend more.