Deceuninck: Q4 downturn, but overall growth for 2006

The Deceuninck Group has announced a fourth quarter turnover for 2006 of €166m, representing a downturn of 1.5%.
The Group’s overall full-year turnover for 2006 was up 4.6% to €662.5m, from €643.7m in 2005. The company said the downturn in the fourth quarter was mainly due to a 20% fall in US sales. “Despite a slight improvement of construction indicators at the end of 2006, expectations are that the decline will continue to have a negative impact on turnover in the United States during the first half of 2007,” the maker of PVC windows and building profiles said. Deceuninck said the full year turnover for Europe was €444m, up 5% on the previous year. The greatest growth was in Russia, with a turnover increase of more than 60%.
Turnover for the year had also jumped up in Germany. The Group attributed the 15% increase to government initiatives promoting investment in improved insulation materials, an energy certificate required by residential home owners (set to commence 2008), and the temporary effect of purchases brought forward to avoid the 3% VAT increase on building materials that went into effect 1 January 2007. The Group experienced “difficult market conditions” in the UK and reported a “significant” decline in turnover.
Looking forward, the Group announced plans to increase production capacity in Russia to 25,000 tonnes in 2007, noting that a large percentage of the profiles for Russia are imported from Germany and Belgium. “The Russian import taxes on profiles in Russia have placed Deceuninck at a competitive disadvantage in comparison with local profile producers,” Deceuninck said. The Group has purchased a site in Protvino, a town about 100km south of Moscow.

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