UPONOR
Fourth-quarter and full year profits lifted by North American revival / European markets starting to recover but remain weak
A buoyant US market has boosted fourth-quarter and full year 2014 financial results for Finnish pipe manufacturer Uponor (Vantaa / Finland; www.uponor.com). Operating profit increased by 26.3% compared with 2013 to reach EUR 63.4m while net sales were up 13% year-on-year at EUR 1.02 bn. Fourth-quarter operating profit for the group was EUR 11.8m and net sales grew by 5.9% from the same period in 2013 to EUR 251.5m.
Uponor said operating profit increased in all segments but the biggest contributor was its North American business which improved by 27.4% in euro terms from the previous year, to reach EUR 31.5m. Net sales for the year rose by 17.1% to nearly EUR 201m. The region’s strong performance was a result of residential and commercial markets returning to growth with capacity expansions timed to meet rising demand. Canada also remained resilient.
Fourth-quarter operating profit for Building Solutions – North America jumped by 59.9% to EUR 9.3m on net sales 28.4% higher at EUR 56.1m.
In Europe, full-year operating profit was 7% higher than 2013 at EUR 35m although net sales were 0.1% lower. Uponor said a key reason was the weaker-than-anticipated market conditions in Germany in the latter part of 2014. Uponor is relocating its Central European operations to a new distribution centre in Hassfurt, Germany, which will go into full commercial use in the second quarter of 2015.
In Southern Europe, activity in Spain improved during the year, albeit from low levels, but slight growth in renovation work in France and Italy fell well short of offsetting a significant reduction in new builds. Meanwhile, the UK saw a second year of improved activity.
In Eastern Europe, residential construction in Russia remained largely unchanged from the previous year. However, businesses began scaling back commercial investments as the Ukraine crisis negatively impacted sentiment.
Activity in the Nordic countries was mixed. Residential construction rose from 2013 levels in Sweden and Demark but fell in Norway and Finland. Renovation activity, however, expanded in all countries. Uponor Infra’s performance improved, largely because of the savings from the merger with KWH Pipe in 2013 – see Plasteurope.com of 28.05.2013 – although profitability was hit by declining volumes in the Finnish market.
In the last quarter of 2014, demand in the European building and construction market remained subdued, continuing the trend of the two preceding quarters. Net sales for Building Solutions – Europe improved by just 0.6% year-on-year to EUR 112.7m, but this was partly because of the temporary product approval cancellation that curbed sales in France in 2013.
Uponor said the short-term economic outlook in its key markets is likely to remain twofold this year. Demand in North America, which accounts for one fourth of the group’s net sales, is expected to remain lively and continue growing. On the other hand, European markets are anticipated to remain flat, although supported by growing confidence in a gradual economic recovery. Risks remain, however, some of which are geo-political, such as the Ukraine crisis. Nevertheless, the group is expecting net sales and operating profit to improve from 2014’s levels.
Uponor said operating profit increased in all segments but the biggest contributor was its North American business which improved by 27.4% in euro terms from the previous year, to reach EUR 31.5m. Net sales for the year rose by 17.1% to nearly EUR 201m. The region’s strong performance was a result of residential and commercial markets returning to growth with capacity expansions timed to meet rising demand. Canada also remained resilient.
Fourth-quarter operating profit for Building Solutions – North America jumped by 59.9% to EUR 9.3m on net sales 28.4% higher at EUR 56.1m.
In Europe, full-year operating profit was 7% higher than 2013 at EUR 35m although net sales were 0.1% lower. Uponor said a key reason was the weaker-than-anticipated market conditions in Germany in the latter part of 2014. Uponor is relocating its Central European operations to a new distribution centre in Hassfurt, Germany, which will go into full commercial use in the second quarter of 2015.
In Southern Europe, activity in Spain improved during the year, albeit from low levels, but slight growth in renovation work in France and Italy fell well short of offsetting a significant reduction in new builds. Meanwhile, the UK saw a second year of improved activity.
In Eastern Europe, residential construction in Russia remained largely unchanged from the previous year. However, businesses began scaling back commercial investments as the Ukraine crisis negatively impacted sentiment.
Activity in the Nordic countries was mixed. Residential construction rose from 2013 levels in Sweden and Demark but fell in Norway and Finland. Renovation activity, however, expanded in all countries. Uponor Infra’s performance improved, largely because of the savings from the merger with KWH Pipe in 2013 – see Plasteurope.com of 28.05.2013 – although profitability was hit by declining volumes in the Finnish market.
In the last quarter of 2014, demand in the European building and construction market remained subdued, continuing the trend of the two preceding quarters. Net sales for Building Solutions – Europe improved by just 0.6% year-on-year to EUR 112.7m, but this was partly because of the temporary product approval cancellation that curbed sales in France in 2013.
Uponor said the short-term economic outlook in its key markets is likely to remain twofold this year. Demand in North America, which accounts for one fourth of the group’s net sales, is expected to remain lively and continue growing. On the other hand, European markets are anticipated to remain flat, although supported by growing confidence in a gradual economic recovery. Risks remain, however, some of which are geo-political, such as the Ukraine crisis. Nevertheless, the group is expecting net sales and operating profit to improve from 2014’s levels.
16.02.2015 Plasteurope.com [230501-0]
Published on 16.02.2015
German version of this article...