Earnings Release • Jan 27, 2011
Earnings Release
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Regulated Information – Fourth quarter 2010 trading update
Under embargo until Thursday 27 January 2011 at 7:30 a.m. CET
Sales Q4 exceeds expectations with a YoY 9.3% increase to € 140 million
Tom Debusschere, Deceuninck CEO: "During the fourth quarter of 2010, overall demand further improved, despite a more difficult comparison base. Sales were particular strong in Turkey and in the United States. The increase in Central & Eastern Europe was driven by strong development in Germany and Russia. The decline in Western Europe was due to weak demand in UK and Spain, as well as an early winter for the region. Sales in France were stable. Demand continued to develop favourably in Belgium and Italy.
The full year volume increase of 6.4% exceeded our expectations. Underlying demand remained strong. Additionally, the termination of several government incentives aiming at reducing energy waste & CO² emission generated some pull forward in sales.
More detailed information on financial results will be published on 23 February 2011. We confirm our return to profitability for the full year 2010.
For 2011 sales we continue to be cautious. In Germany, the United States and the United Kingdom most of the economic stimulus packages have expired. It remains unclear if public budget cuts in other countries will impact the residential renovation market.
Long term, energy-efficient construction and renovation will continue to grow as an engine of our industry. PVC windows remain the 'best value' solution for energy savings. Deceuninck continues to invest in product innovation, with a focus on insulation values, productivity improvement and service to our Customer.
Press release – Q4 and FY 2010 trading update – 27 January 2011
Deceuninck's consolidated sales for the fourth quarter 2010 were € 140 million, a year-on-year increase of 10.1% (Q4 2009: € 128.1 million). Volume increased by 4.7%; exchange rates had a favourable impact of 4.7%. Mix effects (country, price and product) remained unchanged (-0.1%)
Full year 2010 sales amounted to € 557.8 million against € 506.4 million in 2009 (+10.1%). Impact of volume totals +6.4%; currency effects:+4.2% and mix effects:-0.4%.
| In € million | Q4 2009 | Q4 2010 | var. | FY 2009 | FY 2010 | var. |
|---|---|---|---|---|---|---|
| Western Europe | 52.1 | 48.6 | -6.7% | 208.4 | 207.5 | -0.5% |
| Central & Eastern Europe (incl. Germany) | 40.7 | 43.4 | +6.5% | 161.5 | 172.1 | +6.6% |
| Turkey | 20.9 | 28.8 | +37.6% | 80.6 | 108.0 | +34.0% |
| United States | 14.3 | 19.3 | +34.5% | 55.9 | 70.2 | +25.6% |
| Total | 128.1 | 140.0 | +9.3% | 506.4 | 557.8 | +10.1% |
Western Europe: Fourth quarter sales in Western Europ Western Europe e were € 48.6 million, a year-on-year decrease of 6.7%. Demand continued to develop favourably in Belgium and Italy. France was stable. Market conditions were weak in UK, Spain and Holland. Sales in nearly all countries were negatively impacted by an early winter offensive.
Full year 2010 sales decreased by 0.5% to € 207.5 million (2009: € 208.4 million). Sales growth in Belgium, France and Italy contrasted with a sales decline in Spain, Holland and the United Kingdom.
Central & Eastern Europe (incl. Germany): Sales in the Central & Eastern Europe fourth quarter increased year-on-year by 6.5% to € 43.4 million. Recovery continued to be strong in Russia and Germany and some smaller markets in the region. Sales growth in Germany was fuelled by the termination of economic stimulus packages at the end of 2010.
Full year sales increased 6.6% to € 172.1 million. Besides increased demand, sales were favourably impacted by foreign exchange rates of the Polish Zloty, Czech Crown & Russian Rouble against the euro.
Turkey: Sales growth further intensified in Turkey i Turkey n the fourth quarter. Sales increased by 37.6% to € 28.8 million (2009: € 20.9 million). At constant exchange rate sales grew 17%. Full year sales were € 108 million, an increase by 34% (+21% at constant exchange rate) Sales growth in euro continued to be favourably supported by a strong Turkish lira against a weak euro. Both domestic demand and demand from Turkey's export markets remained strong. Deceuninck continued to strengthen its market position by means of an extensive focus on Customer intimacy and branding to the end consumer.
United States: Fourth quarter sales were € 19.3 milli United States on compared to € 14.3 million a year ago, an increase of 34.5% (+17% at constant exchange rate). Full year 2010 sales increased by 25.6% to € 70.2 million (+15% at constant exchange rate). Demand from the residential renovation segment remained strong throughout the quarter stimulated by the year end termination of the \$ 1500 tax credit for the replacement of old windows by the latest generation of highly energy efficient windows. Sales growth expressed in euro continued to be supported by a strong US dollar.
| 23 | February 2011 February 2011 |
2010 annual results |
|---|---|---|
| 4 | April 2011 April 2011 |
Annual report online |
| 10 | May 2011 May 2011 |
Q1 trading update |
| 10 | May 2011 May 2011 |
Annual Shareholders meeting at 11 am |
| 14 | July 2011 July 2011 |
Q2 trading update |
| 26 | August 2011 August 2011 |
2011 half year results |
| 20 | October 2011 October 2011 |
Q3 trading update |
Deceuninck is a leading international designer and manufacturer of high quality PVC systems for windows and doors, cladding and roofline, interior and garden applications. The basic technology used by the company is extrusion of patented PVC and Twinson composite material. The highly integrated state of the art production process includes compounding, tool manufacturing, extrusion of gaskets and profiles, printing, PVC lamination and the patented Decoroc coating technology.
The Group is active in over 75 countries, has 35 subsidiaries (production and/or sales) across Europe, North America and Asia, and employs 2,821 FTE (including temporary employees), of which 670 in Belgium. In 2010 the Deceuninck Group achieved consolidated sales of EUR 558 million.
(End of press release)
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DECEUNINCK, Ludo Debever, Investor Relations Manager Telephone: +32 51 239248 Mobile: 32 473 552335 E-mail: [email protected]
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