UPONOR
Sales and earnings slump in 2009 / Stabilisation in Q4 / Operating income should improve in 2010
An “unprecedented slowdown of construction activity across all key markets” severely pressured financial results of Finnish plastic pipe manufacturer Uponor (Vantaa; www.uponor.com) in 2009. Sales declined nearly 23% to EUR 734.1m and operating profit by 19% to EUR 41.2m. The group said this reflects the ongoing contraction in the housing and infrastructure technology markets, “which has prevailed for more than two years.” The operating result also was diminished by EUR 5.3m in non-recurring charges related to restructuring.
Uponor said the rate of decline in its business slowed as the year advanced, due in part to savings and efficiency measures that included enhancing and streamlining the supply chain of Building Solutions in Europe through centralised warehouses and improved service networks. “Slight growth” in demand from some markets and product groups was recorded in the fourth quarter, compared with the 2008 period, with sales of the European Building Solutions segment reaching their highest level for the year.
To strengthen its market position, Uponor opened new sales offices in Turkey, Slovakia, Croatia and China in 2009. Over the year, staff numbers were reduced by 10% across all geographical units. The most substantial cuts were made in production, warehousing, dispatching and marketing. The largest share of the Finnish pipe manufacturer’s workforce is in Germany (33.5%), followed by Sweden (14.9%) and the US (11.6%).
Despite the improvement seen at the end of 2009, Uponor said demand in key markets “is not expected to improve” in 2010. Although national economic stimulus packages “continue to support demand,” no new initiatives are in sight and credit is still tight. Nevertheless, the group points to permanent “significant benefits” from its new organisational structure, especially in Europe. A decrease in capital spending is expected to generate additional benefits outweighing a planned spending increase following completion of cost-saving measures. Management predicts that 2010 sales will be flat at the 2009 level, while operating profit will improve.
e-Service:
Uponor financial results briefing as a PDF document (263 KB)
Uponor said the rate of decline in its business slowed as the year advanced, due in part to savings and efficiency measures that included enhancing and streamlining the supply chain of Building Solutions in Europe through centralised warehouses and improved service networks. “Slight growth” in demand from some markets and product groups was recorded in the fourth quarter, compared with the 2008 period, with sales of the European Building Solutions segment reaching their highest level for the year.
To strengthen its market position, Uponor opened new sales offices in Turkey, Slovakia, Croatia and China in 2009. Over the year, staff numbers were reduced by 10% across all geographical units. The most substantial cuts were made in production, warehousing, dispatching and marketing. The largest share of the Finnish pipe manufacturer’s workforce is in Germany (33.5%), followed by Sweden (14.9%) and the US (11.6%).
Despite the improvement seen at the end of 2009, Uponor said demand in key markets “is not expected to improve” in 2010. Although national economic stimulus packages “continue to support demand,” no new initiatives are in sight and credit is still tight. Nevertheless, the group points to permanent “significant benefits” from its new organisational structure, especially in Europe. A decrease in capital spending is expected to generate additional benefits outweighing a planned spending increase following completion of cost-saving measures. Management predicts that 2010 sales will be flat at the 2009 level, while operating profit will improve.
e-Service:
Uponor financial results briefing as a PDF document (263 KB)
17.02.2010 Plasteurope.com [215520]
Published on 17.02.2010
German version of this article...