Earnings Release • May 8, 2012
Earnings Release
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Regulated Information – First quarter 2012 trading update Under embargo until Tuesday 8 May 2012 at 7:30 a.m. CET
Consolidated Q1 2012 sales +1.3% at € 118 million
"First quarter sales increased 1.3%, supported by stable profile volumes and a positive price/mix effect. The overall trend of stable sales is continuing at the start of the second quarter. New product launches at the major building fairs were well received and help Deceuninck gain market share. At the start of the building season, visibility remains limited, due to a short order book, typical for the industry.
The impact of government austerity measures in most markets and the general economic environment remain uncertain.
The PVC cost trend has been reversed upward since January 2012. The increase is sustained by increasing ethylene costs and multiple "forces majeures" declared by PVC suppliers. Additionally, titanium dioxide and other additive costs, continue to rise. Deceuninck remains committed to pass on increased raw material cost to the market. Wage, energy and other increases are compensated by rigorous cost control and continued productivity improvement.
The focus throughout 2012 continues to be on innovation, protecting margins and maintaining profitability.
This early in the year, and considering the uncertain environment, Deceuninck refrains from giving a full year 2012 guidance.
Long term, energy-efficient construction and renovation will continue to grow as an engine of the construction industry. PVC windows and Twinson wood composite products are sustainable, low maintenance applications with a timeless design, which save energy throughout a 50+ year life cycle, and will be recycled at end-of-life.
Deceuninck believes in "Building a sustainable home": Innovation, Ecology and Design.
The greenest energy is the energy you do not consume. Latest generation windows offer excellent insulation, helping families to save over 50,000 litres of heating fuel during a 50+ year lifetime.(°)
In 2011 Deceuninck launched Zendow#neo using Linktrusion technology. Linktrusion links PVC with other composites to obtain the best insulation performance. The combination of glass fibre reinforced PVC profiles and thermal PVC reinforcements is a next step in bringing more energy efficient solutions to the market.
The greenest raw material is the one that you do not consume. Deceuninck's latest window designs provide an improved energy performance at an ever lower weight. They now meet passive house insulation requirements, at up to 40% less material consumption. This helps the users of Deceuninck's products to preserve natural resources.
Deceuninck will further develop its recycling activities to guarantee a closed loop for all the materials and products the company puts on the market: PVC, Twinson wood composite, as well as the newly launched glass fibre reinforced PVC can and will be recycled."
For further information on our vision: http://www.deceuninck.com/en/about-us.aspx
(°) Source: Inoutic energy savings calculation: (see: http://www.inoutic.de/en/tips-on-window-purchase/savingenergy/energy-saving-calculator/energiesparrechner.html) Calculation base: replacement of 35m² single glazed windows. Results may vary in function of the region and PVC window system used to replace the single glazed window.
| In € million | Q1 | Var.Q1 | Var. Q1 |
|---|---|---|---|
| 2012 | 2011/12 | loc. curr. | |
| Western Europe | 51.2 | -5.7% | |
| Central & Eastern Europe | 29.7 | +6.8% | |
| Turkey | 23.2 | +3.3% | +15.0% |
| United States | 13.9 | +15.9% | +10.1% |
| Total | 118.0 | +1.3% |
First quarter sales in Western Europe were € 51.2 million, a year-on-year decrease of 5.7%. Demand in Belgium was strong at the start of the year supported by a mild winter and pull forward sales after announcement of a partial repeal of government incentives for energy efficient renovation.
Negative macro-economic indicators were reflected in a volume decline in all other countries.
First quarter 2012 sales in Central & Eastern Europe increased 6.8% to € 29.7 million. Volume increased mainly in Poland, Russia and Germany. Sales in Central Europe were impacted by weak macro-economic environment and government austerity measures.
First quarter sales in Turkey increased by 3.3% to € 23.2 million. Sales were impacted by a continued weak Turkish lira. At constant exchange rates sales increased by 15%. Both domestic and export volumes were solid.
First quarter sales at Deceuninck North America increased 15.9%. At constant exchange rates sales increased by 10.1%. Activity in residential new construction continued to hover at historical lows. Demand from the renovation market segment was solid throughout the quarter. Sales growth was supported by new product innovations and new customers.
| 12 | July | 2012 | Q2 2012 trading update |
|---|---|---|---|
| 23 | August | 2012 | 2012 half-year results |
| 18 | October | 2012 | Q3 2012 trading update |
End of press release
At Deceuninck, our commitment towards innovation, ecology and design provides us with a clear focus: building a sustainable home. A home that is more energy-efficient to live in and more attractive to look at. Deceuninck works worldwide with state-of-the-art materials, resulting in low maintenance, top insulating and long lasting products that can be fully recycled at end of life. Moreover, our values of Candor, Top performance and Entrepreneurship help us build a better world for our Partners and end users. Deceuninck has strong ambitions. We want to build a work environment in which people are proud to contribute, and strengthen our position within the top three market players. Alongside our ecological sustainability, Deceuninck also pursues financial sustainability.
Deceuninck employs 3000 people in 25 countries, of which 700 in Belgium. Deceuninck sales in 2011 were € 536 million
Contact Deceuninck: Ludo Debever • T +32 51 239 248 • M +32 473 552 335 • [email protected]
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