Deceuninck: Eastern European markets targeted

Despite the “difficult” economic and political backdrop, window and building profiles manufacturer Deceuninck NV, Belgium was able to consolidate its position last year in markets where it already had strong sales, the group said in a statement to shareholders. Turnover rose 3.2% to EUR 350.6m and net earnings improved by 20.3% to EUR 27m. The group, which has 1,694 employees active in 32 countries, regards itself as world´s third largest profiles manufacturer. In its annual report for 2001, Deceuninck reveals additional details on the performance of its core business segments.

In window and door systems, group sales rose 4% to EUR 277m. The building profiles division grew by only 2% to EUR 58m, which is attributed to the difficult competitive situation among European processors. Here, Deceuninck intends to boost its position by strengthening its brand policy. In facade protection, sales reached their target with a jump of 9% to EUR 12m. The company´s Delta division embraces all new projects, including Deceuninck Recycling S.A., Belgium, which manufactures garden supplies from recycled plastic scrap, and Uniplast S.A., Belgium, which produces flexible cable sheathing under the names “Vitflex” and “Mondoflex”. With its “Dermaplast” tools division at Belgian headquarters, Deceuninck is able to cover the group´s entire captive requirements, currently 1,400 tools.

The Belgian profiles manufacturer´s main markets are the US (sales of EUR 95m), UK (EUR 70m), France (EUR 52m), Benelux (EUR 43m), the countries of central and eastern Europe – Poland, Czech Republic, Slovakia, Croatia and Hungary – (EUR 32m) and Spain / Portugal (EUR 12m). Deceuninck sees especially good strategic opportunities for growth in central and eastern Europe. Although a serious competitor in Europe, it thus far has not succeeded in gaining a foothold in Germany. The German sales office has been closed and turnover there continues to decline. Apart from the weakness of the construction market generally, one reason is certainly that the German profile manufacturers already have the market well covered.

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