Pipe systems manufacturer Wavin (Zwolle / The Netherlands; www.wavin.com) has said in a trading update that significant pressure in the construction market, compounded by destocking in the supply chain, has led to a year-on-year reduction in operating profit (EBITDA) of 25% to just below EUR 160m. The forecast 2008 revenue is now around 2% below the 2007 level of EUR 1.62 bn. Adjusted for acquisitions and at constant currencies, like-for-like revenue was expected to be down by approximately 7%.

Markets in the UK, Ireland and Denmark have been badly affected and activities in other western European countries are also showing a slowdown, the company said. However, central and eastern Europe and Turkey are experiencing healthy growth, although at a lower level than in recent years.

As part of the company’s cost reduction programmes, headcount in western European operations is currently 650 lower than a year ago, a fall of over 10%. The cost of restructuring charges in 2008 was around EUR 12m, and the employee reductions were expected to return total annual savings of around EUR 22.5m.