Manufacturers News
Deceuninck lowers outlook as slowdown bites
5 years, 9 months ago Posted in: Manufacturers News 0

Expects 3-4 pct revenue decline in 2011
Had previously forecast flat revenue
Shares slump 5.3 pct vs 1 pct index dip (Adds CEO comments, share price reaction)

Reporting by Robert-Jan Bartunek and Ben Deighton; editing by Rex Merrifield and David Hulmes

BRUSSELS, Oct 20 (Reuters) – Belgian PVC window frame maker Deceuninck lowered its outlook on Thursday, saying the global economic slowdown had caused consumers to delay insulating their homes.

While previously forecasting 2011 revenue would remain flat, the group said it now expected a decline of 3-4 percent.

“What we’re seeing is an entire softening of the market, which is very typical in an industry like ours which is cyclical,” Chief Executive Tom Debusschere told a conference call.

Shares of Deceuninck fell as much as 5.3 percent in early Thursday trading, compared with a decline of about 1 percent in the Belgian Midcap Index , of which it is a constituent.

Deceuninck said it still expected a net profit for the full year as raw material prices had stabilised.

“We’re saying, ‘Look, we will remain profitable, even under these economic conditions’ … and yes it’s going to be below last year,” he said.

The group makes PVC-based products for the construction industry, such as motorway walls to block traffic noise, made from recycled PVC.

The group said demand was weakest in the U.S. and central and eastern Europe, while revenue rose in Germany and Turkey.

Deceuninck’s third-quarter sales came in at 139.9 million euros ($193 million), an 8.2 percent decline from last year.

($1 = 0.725 Euros)

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