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Deceuninck Lowers 2011 Outlook After Poor Sales in U.S.
6 years ago Posted in: Manufacturers News 0

2011 Projections by Deceuninck Reduced Amidst $38M USD Shortfall in US Market

SOURCE: European Plastics News

Posted 15 July 2011

Belgian PVC window frame maker says it now expects its top and bottom line to be stable for the year, after sales fell 2.4% in the second quarter. The company had previously predicted sales and profit growth.

The company said it took into account continuing PVC and additive cost increases, the US volume decline and unfavourable exchange rates in changing its outlook.

In the second quarter of this year, consolidated sales decreased 2.4% to €152.3m. Favourable sales volumes in Benelux, France, Germany and Turkey could not compensate for weak demand in the US and central and eastern Europe.

The cost of raw materials continued to rise in May and by the end of June, the PVC resin price index was 9% higher than the end of 2010, says the company.

Deceuninck’s consolidated sales for the first half-year 2011 were € 268.9m, a year-on-year increase of 1.3%.

In terms of region for the first half of the year, half-year sales in Western Europe were € 117.2m, a year-on-year increase of 6.8%, driven by strong sales in Benelux, France and Italy. Market conditions were weak in Spain and the UK.

Sales in Germany and central and eastern Europe were stable, while US sales fell 15.1% to € 27.3m.

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