Earnings Release • Oct 29, 2008
Earnings Release
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CONTINUED SUSTAINED GROWTH IN BATCH ANODISING: +33.2% (pro forma – excluding the impact of exchange rates)
Brussels, October 29, 2008 – COIL, the worldwide leader in aluminium anodising, reported sales for the first nine months in 2008 of €23,050K, an increase of 8.6% when compared to the same prior year period. Consolidated sales in the third quarter amounted to €7,112K, an increase of 15.1% when compared to the third quarter of 2007.
| (In thousands of Euros) | 2008 | Change | 2008 | Change | |
|---|---|---|---|---|---|
| 9 months | Actual | Pro-forma(1) | Q3 | ||
| Continuous anodising | 15,984 | - 1.7% | - 1.7% | 4,888 | + 15.1% |
| Batch anodising (HMF et LHT) | 7,066 | + 42.5% | + 26.2% | 2,224 | + 15.1% |
| Consolidated sales | 23,050 | + 8.6% | + 5.4% | 7,112 | + 15.1% |
(1) The companies Heywood Metal Finishers Ltd (« HMF ») and LHT Anodisers Ltd (« LHT ») were consolidated as of February 1, 2007. Pro-forma information has been reported for the full year 2007 in order to provide comparability.
The batch anodising business continued the trend noted since the beginning of 2008 with sales for the first nine months of 2008 at €7,066K, a pro-forma growth rate of 26.2% when compared to the first nine months of 2007. Despite a difficult economic environment in the UK, growth in the 3rd quarter was 15.1% amounting to sales of €2,224K for the period.
Growth in this business was negatively influenced by significant unfavourable changes in euro/ sterling exchange rates. Based on comparable exchange rates and pro-forma information, sales for the first nine months increased by 45% (+33% in the 3rd quarter of 2008).
In the 3rd quarter of 2008 the continuous anodising business reported an improvement in sales versus the same prior year period. Despite the high level of uncertainty in the world economy, consolidated sales for the period amounted to €4,888K, an increase of 15.1% when compared the 3rd quarter of 2007.
Sales for the continuous anodising business reached €15,984 in the first nine months of 2008, virtually in-line with the same period in 2007. Growth in the continuous anodising business is directly influenced by the increased importance of packaged sales (which include the supply of metal) for which sales efforts began early in the year. Those sales, which are related to architectural projects outside of Europe, represented approximately 9.5% of consolidated sales in the 3rd quarter of 2008, further contributing to the continued diversification of end-markets.
The intensification of technical marketing efforts to prescribers and of the changing product mix contributed to the geographic diversification of sales. In particular, this permitted the Group to strengthen its position in the UK (over 30% of consolidated sales in the first 9 months of 2008) and contributed to the steady growth of sales outside Europe (over 9% of consolidated sales in the first 9 months of 2008).
For the full year in 2008, in light of the still difficult macroeconomic climate, short-term visibility remains limited in terms of business growth and profitability. In mid-term, Coil reinforce its strategy of qualitative growth : development of new segments, improvement in the market-client-product mix and ramping up of the international deployment.
NEXT DATE: 2008 Sales to be communicated in January of 2009.
COIL, a Belgian Group listed on the Euronext Paris Eurolist C since June 26, 1996, is the world's largest architectural and industrial anodiser, specialising in the surface treatment of aluminium extrusions, castings and flat-rolled products.
Anodising is an electrochemical process (electrolysis), which provides a protective layer of natural oxide on aluminium and can be coloured. It protects metals with an improved resistance to corrosion and/or increased functional characteristics.
Anodising preserves all the natural and ecological properties of aluminium - it maintains its high strength to weight ratio, non-magnetic properties and exceptional corrosion resistance without impacting the complete recyclability of the metal.
Anodised aluminium is used across a wide range of architectural, designer, industrial and automotive applications.
COIL - Tim Hutton – Chief Executive Officer – [email protected] - Tel: ++32 (0)11 88 01 88 CALYPTUS – Cyril Combe - [email protected] -Tel.: 33 (0)1 53 65 37 94
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