Tessenderlo (Brussels / Belgium; www.tessenderlo.com) reported a significant net loss for 2009, with a severe decline in revenues and margins in the PVC/chlor-alkali business. The global recession resulted in a group net loss of EUR 166.7m compared with a EUR 140.4m profit for 2008, while revenues sank 24% to EUR 2.09 bn. Operating profits before non-recurring items (REBIT) fell to a negative EUR 51.4m from a EUR 239.1m profit last time.

“The global economy has experienced the most severe downturn in recent history, starting in Q4 2008 and continuing throughout 2009,” Tessenderlo stated. “Major sectors such as construction and automotive were sharply lower.” On a positive note, the group delivered cost savings of more than EUR 40m, and reduced net debt from EUR 294.6m at the end of 2008 to EUR 209.0m at the end of 2009.

Tessenderlo said the PVC/chlor-alkali business felt the impact of lower activity in the building and industrial end markets, resulting in a full year REBIT loss of EUR 28.0m compared with a EUR 19.6m profit for 2008. Revenues fell 20% to EUR 443.1m. PVC margins were subject to big swings because of an unusually dynamic supply/demand balance, the group noted.

The plastic pipe systems and profiles business reported a 2009 REBIT of EUR 21.5m, down 16% from 2008. Revenues sank 14% to EUR 545.9m. Tessenderlo said the business improved significantly in the fourth quarter compared with a very weak quarter a year earlier, with margins boosted by cost cutting initiatives.

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