Polyurethane foam converter Recticel (Brussels / Belgium; www.recticel.com) saw operating profits (EBITDA) in Europe increase by 16.7% to EUR 104.3m in 2005, despite the negative impact of raw materials price increases in the first half of the year. Start-up and volume problems in the US automotive sector, however, more than offset the good performance in Europe, which led to group EBITDA remaining stable at EUR 82.1m. The group posted an overall net loss of EUR 28m on net sales that increased by 9% to EUR 1.39 bn.

The company performed well in its three principal segments – flexible foam, bedding and insulation – despite considerable raw materials price increases. The European automotive business also made a positive contribution to operating profits.

The US automotive business suffered from higher start-up costs in the Tuscaloosa, Alabama, plant which supplies Mercedes. The company said that it had seen an improvement in the second half of the year but this was not great enough to compensate for losses in the first half. Volumes reduced by 50% for a General Motors model and the Chapter 11 filing at customer Delphi – leading to the non-payment of an invoice – also contributed to the poor performance in the USA.

Despite restructuring costs in Belgium, Germany and the Czech Repubic, EBITDA rose in Europe by EUR 14.9m year-on-year while it fell by EUR 15.2m in the USA.

In mid-March, Recticel agreed to acquire all shares of Spanish foams producer Grupo Icoa (Bilbao; www.icoa.es), in a deal the Belgian company said will make it "number one on the Iberian peninsula," with an aggregate market share of 30%. With sales of EUR 40m in 2005, Icoa operates three foaming plants, at Madrid, Valencia and Vitoria / Spain and three conversion plants, at Barcelona, Valencia and Bilbao. The deal is still subject to approval by Spanish regulatory authorities.

e-Service:
Detailed Recticel presentation on full year 2005 as PDF document (112 KB)