Kyro
Blames High Value of Euro for Lacklustre Interims
Kyro President and CEO Pentti Yliheljo, in announcing the group's interims,
said: 'Our volumes have grown in the glass machine markets of the Far
East and America. The strengthening of the euro, however, has reduced
growth of net sales and earnings outside Europe. In the EU area, a weak
level of investment has also been reflected in the glass machine market.
We view growth in After Sales business and pre-processing machine orders
as a sign that the market is beginning to turn around for Glaston Technologies.
This positive outlook is supported by an offer book which has risen to
a near record level.'
Highlights:
- Net sales EUR 51.5 (54.4) million; EUR 54.5 million if calculated with
foreign exchange rates from 2003
- Operating profit before amortisation of goodwill EUR 4.9 (5.2) million
- Profit before extraordinary items grew by 29% to EUR 4.8 (3.7) million,
9.4% (6.9%) of net sales.
- Earnings per share EUR 0.08 (0.05), equity per share EUR 3.19 (3.33)
- Equity ratio on 31st March 2004 56.1% (54.7%)
- Growth of offer book and After Sales business indicates increasing capacity
utilisation in the glass processing industry
- Group order book on 31 March EUR 71.6 (85.6) million, order book rose
in April to EUR 75.4 (80.7) million
Pentti Yliheljo continued: 'The widest customer service network and the
most comprehensive product range in the glass machine sector as well as
the One-Stop- Partner concept have strengthened Glaston Technologies'
market position in tight economic conditions. Customer loyalty has also
grown further. We therefore hold a clear competitive advantage as the
leading and growing supplier of glass processing machines.
'Kyro's strategy is to is profitably grow Glaston Technologies, both organically
and through acquisitions. As demand in the glass machine market starts
to return to normality, we have all the prerequisites for growth in place.
Our synergy and development projects will then provide a good basis for
improvements in earnings,' Yliheljo added.
Kyro Group Structure
Kyro's main business area, Glaston Technologies, consists of the Glass
Machinery group, which operates world-wide, and the Glass Processing group,
which focuses on markets in Finland and neighbouring countries. Kyro's
second business area is Energy, which consists of the electricity and
heat generating plants of Kyro Power Oy.
The Glass Machinery group's products are glass pre-processing machines
as well as safety glass machines for the architectural and automotive
glass industries.
The group consists of Tamglass, a technology and market leader in safety
glass machines, Uniglass, which manufactures flat tempering machines,
and the supplier of glass pre-processing machines Bavelloni, which also
produces stone processing machines. The Glass Processing group consists
of Tamglass Glass Processing, whose business area includes production
of safety, balcony and insulating glasses and their installation.
Net Sales and Profit
Kyro Group's net sales in the period under review totalled EUR 51.5 (54.4)
million. The euro remained at a high level against other key billing currencies.
This reduced both turnover and sales at the beginning of the year and
had a clearly negative impact on the operating profit. Net sales would
have been EUR 54.5 million if calculated at the foreign exchange rates
of the corresponding period from 2003.
The Group's operating profit before amortisation of goodwill was EUR 4.9
(5.2) million. This represented 9.5% (9.6%) of net sales. The Group's
amortisation of goodwill was EUR 0.8 (0.8) million and operating profit
after amortisation amounted to EUR 4.1 (4.4) million.
Net financial items totalled EUR 0.8 (-0.6) million. These include interest,
dividend and other financial income of EUR 1.1 (0.9) million, and interest
and other financial expenses of EUR 0.3 (1.5) million.
Profit before extraordinary items grew by 29% to EUR 4.8 (3.7) million.
This represented 9.4% (6.9%) of net sales. Profit for the financial year
grew by 42% to EUR 3.0 (2.1) million. Return on invested capital stood
at 12.4% (10.3%). Earnings per share were 0.08 (0.05) euros.
The Group's order book on 31st March was EUR 71.6 (85.6) million. The
strong euro and the postponement of investment decisions for safety glass
machines weakened order intake in the period under review. Good machine
sales in April (around EUR 17.5 million in new machine orders) increased
the order book to EUR 75.4 (80.7) million.
At the end of the period under review, Kyro Group had 1,126 (1,147) employees.
The reduction in the number of employees took place mainly in Bavelloni.
The number of Group employees working abroad was 701 (727). The average
number of employees during the period under review was 1,128 (1,143).
From the previous Board of Directors were re-elected Lars Hammarén,
Barbro Koljonen, Heikki Mairinoja, Carl-Johan Numelin, Carl-Johan Rosenbröijer
and Christer Sumelius. As a new member of the Board of Directors was elected
Klaus Cawén, Master of Laws. Former members of the Board of Directors,
Carl-Olaf Hómen and Gerhard Wendt, were not eligible for re-election
under the age rule in the Articles of Association.
At its meeting on 17th March 2004, the new Board of Directors elected
Carl-Johan Numelin as Chairman of the Board of Directors and Christer
Sumelius as Vice Chairman. The Annual General Meeting elected KPMG Wideri
Oy Ab as the auditor, with Sixten Nyman, Authorised Public Accountant,
as the responsible auditor.
GLASTON TECHNOLOGIES
Glaston Technologies' net sales totalled EUR 44.0 (46.4) million in the
period under review. Net sales would have been EUR 47.0 million if calculated
using the foreign exchange rates of the corresponding period from 2003.
The strengthening of the euro had a significant negative impact on profitability.
Operating profit before amortisation of goodwill was EUR 4.0 (4.3) million,
representing 9.0% (9.3%) of net sales. Profitability has been burdened
by expenditure-type investments to strengtheni Glaston Technologies' distribution
network and to start manufacturing of pre-processing machines in Brazil.
The Glass Machinery group's net sales and profitability were approximately
at the level of the corresponding period of last year.
Regional machine manufacturing partly compensated for the negative impact
on profitability of the strong euro.
The Glass Processing group's net sales fell slightly due to exceptionally
large orders delivered in the corresponding period of 2003. Relative profitability,
however, remained at the previous year's level.
Glaston Technologies' order book on 30th April was EUR 52.7 (58.7) million.
Orders of pre-processing machines grew from the corresponding period of
the previous year.
GLASS MACHINERY GROUP
Demand for glass processing machines, particularly in Central Europe,
is still restricted by the current economic cycle. In the United States
demand has improved from the previous year. In Latin America the focus
of demand is still mainly on Brazil, where sales of pre-processing machines
have take off following Bavelloni's investment in its own local sales
and manufacturing unit, along the lines of Tamglass. Demand for glass
processing machines in the Far East continues to be good.
The Glass Machinery group's companies, Tamglass and Bavelloni, are consolidating
those customer service units which are located in the same regions. The
arrangement will generate cost savings and will boost cross-selling of
products as well as the offering of comprehensive deliveries under the
One-Stop-Partner concept.
Competitors who make glass pre-processing machines and safety glass machines
have suffered from the recent economic downturn. Glaston Technologies'
strengthened market share, financial solidity and comprehensive product
range are a competitive advantage in tight economic conditions.
The capacity utilisation rate at Glaston Technologies' factories was good
during the period under review. The manufacturing of all safety glass
machines and glass pre-processing machines is based on an efficient subcontracting
network, which enables capacity to be increased quickly as demand rises.
The joint procurement of components begun by Tamglass and Bavelloni last
year is already producing cost savings.
The first glass pre-processing machines made by Bavelloni in Brazil will
be delivered in the second quarter of this year.
Glaston Technologies has the widest product range in the business. The
glass processing machines developed by the Glass Machinery group for demanding
glass shapes and machining processes represent the industry's most advanced
technology. They occupy a strong position, for example, in the processing
of large glass sizes.
In the period under review, net sales of maintenance business grew clearly
from the corresponding period of the previous year, which indicates an
increase in the utilisation rate of glass processors' machines. Moreover,
the supply and sales of second-hand machines are also growing.
Similarly, demand for machine accessories and upgrade packages is good
and their order book is at a record level. Sales of tools intended for
glass pre-processing have also been growing since last autumn.
GLASS PROCESSING GROUP
Despite the low level of office construction, Tamglass Glass Processing
has strengthened its market position as a comprehensive supplier of glass
processing products. A robust level of renovation and residential building
compensated for the low volume of office construction.
In the period under review, the combined Tamglass Glass Processing brand
was launched, covering the product groups Tamglass Balcony Systems, Tamglass
Safety Glass and Tamglass Insulating Glass. Sales of Tamglass Balcony
Systems were enhanced by a new reseller network.
Tamglass Glass Processing began safety glass deliveries to Pilkington
Marine, which makes cruise liner and ship glazing. Tamglass Glass Processing
also supplies e.g. cabin glazing for Valtra's latest tractor model.
FUTURE OUTLOOK
The Kyro Group's basic business set-ups for the current year are good.
Glaston Technologies is the world market leader in a growing business
sector. Glaston Technologies' order book has decreased since last year,
but its offer book has grown to a nearly record high level. The business
of Kyro Power is stable and profitable.
The present exchange rate of the euro will reduce growth of net sales
and profitability in the current year. Uncertainty is increased by the
general economic development, particularly in the large European Union
countries.
Glaston Technologies is aiming in 2004 to improve its profitability by
developing its operations and by exploiting synergy benefits.
First
Quarter Results Shine at Safestyle
Safestyle
UK, retail supplier of PVCu windows and doors has seen a significant ten
percent rise in first quarter results. The Bradford based company is now
on target to break the £100 million barrier by the end of the calendar
year.
Although traditionally one of the quietest periods for the home improvement
market, turn over has increased to £24.15 million compared to £21.89
million for the corresponding period in 2003.
Commenting on the increase in turnover and the encouraging start to the
year, Chief Executive John Ross was keen to acknowledge the efforts of
his organisation:
‘Although we are a nationally known company with an outstanding product,
our greatest asset remains our team. Over the last twelve months, we have
worked hard to improve the effectiveness of our branch network and to
meet the needs of local markets. With the recent opening of York and Brighton,
we now have 40 branches ensuring extensive coverage throughout the UK.’
Supporting a strong strategic belief, John Ross remains confident that
the company will witness continued growth throughout 2004 without the
need to diversify:
‘The company’s financial position remains strong and our market
share continues to increase. However we have no plans to broaden our product
offer - we will remain focussed on doing the job we know best, which is
producing and selling the highest quality yet competitively priced windows
and doors. I am a firm believer that this policy will ensure our future
growth and profitability.’
Launched
in 1992 Safestyle is one of three specialist companies, which make up
the Style Group UK Plc. The Group is a national organisation with 40 offices,
including a head office in Bradford, West Yorkshire, covering manufacture,
trade supply and retail markets.
Last year, Style Group UK Plc celebrated its 10th anniversary with trading
results, which showed record sales, having improved to £80.8 million
and an increased underlying profit, which had increased by 47% on the
previous year to £2.2million
First
Quarter 2004: Permasteelisa Regaining Profitability
The
Board of Directors of Permasteelisa S.p.A., which controls the Permasteelisa
Group, approved on May 13th the First-Quarter Financial Statements for
the period January 1st - March 31st, 2004.
The consolidated value of production amounts to Euro 213.8m with an increase
of 3.6% over the corresponding period of the previous year. Maintaining
the same consolidation area and exchange rates as the previous year, the
increase would have reached 11.8%.
The contribution of the EBIT on the value of production is equal to Euro
13.3m, thus featuring a decrease from 7.8% to 6.2% in respect to the corresponding
period of the previous year. Compared to 1H03 and 3Q03 there has been
an increase in the EBIT contribution, which was respectively 4.8% and
5.7% on the value of production.
The profit before taxation is equal to Euro 12.7m, vs. Euro 15m of the
corresponding period of the previous year.
'The increase in volume in respect to the corresponding period of the
previous year, which gains an even wider significance if we would consider
the consolidation area as being unchanged, stands as a confirmation that
the company is regaining its market shares' - said Mr Enzo Pavan, Chairman
of the Permasteelisa Group - 'The increase in profitability over the last
two quarters represents an extremely important sign of recovery'.
The value of production is affected by the sale of the extrusion business,
which contributed to the previous years 1Q turnover with Euro 10.5m and
includes 1Q04 revenues attributable to Glassalum for Euro 5.4m.
The Group's net financial position as at March 31st, 2004 had a positive
balance of 6.1m Euro. The reduction from the 33.1m Euro positive balance
as at December 31st, 2003 is due to the normal increase in working capital
in relation to some jobs in progress.
1Q04 orders' acquisition amounted to 251m Euro vs, 234 mn Euro of the
corresponding period of the previous year. The positive trend continued
during the month of April, with a cumulated value of awarded projects
in 2004 standing at 354m Euro vs. 299m Euro of the previous year's corresponding
period.
The markets that featured the best performance were the United States,
UK, Belgium/Luxembourg and Germany. Particularly encouraging signs of
recovery are coming from Asia.
Permasteelisa is one of the major companies in the engineering, manufacturing
and installation of architectural envelopes worldwide, offering highly
technological solutions and operating in close relationship with the most
prestigious contemporary architects.
With a network of more than 60 companies located in 27 countries throughout
the four continents, in December 2000 Permasteelisa acquired Josef Gartner,
a leading company in the aluminium steel architectural envelopes market.
Having a well-distributed network of manufacturing structures as well
as project management units, Permasteelisa is able to offer a local effective
service, maintaining high quality standards on all the markets.
Through four research centres and the coIlaboration with prestigious international
universities, Permasteelisa promotes the development and the utilisation
ofinnovative environmentally responsible technologies, the Blue Technologies,
which allow significant energy savings and assure high standards of occupant
comfort.
Among the hundreds of buildings executed by the Permasteelisa Group are:
the Sydney Opera House; the European Parliament in Brussels and in Strasbourg;
the development of Canary Wharf in London; France Television Headquarters
in Paris, ABN AMRO Headquarters in Amsterdam; the Guggenheim Museum in
Bilbao; the most important buildings of the City in Frankfurt; the Munich
and Brussels airports; Suntec City and the Stock Exchange in Singapore,
the airport (internal claddings), Cheung Kong Centre, the Bank of China
and the International Financial Centre in Hong Kong; Taipei Financial
Centre in Taiwan; Jin Mao in Shanghai; Telecom MaIaysia in Kuala Lumpur;
the Walt Disney Concert Hall in Los Angeles and the MoMA in New York and
the premises of the most important financial institutions.
Tel 0438 505 500
Email: mailto:j.collodel@permasteelisa.it
Ultraframe
Upbeat about Future, Despite Poor Results
Ultraframe
confirmed its position as market leader and its increasing commitment
to defending market share, but with disappointing interim financial results
that indicate first half UK sales down 13% for 2004 (reported in The Gl@zine
last week). This in large part reflects the structural change of the conservatory
market in the past year including new entrants from the home improvement
window market, together with a significant shift towards a younger, more
price-conscious conservatory buyer.
While new and smaller competitors have been able to enter the market and
increase sales in the budget segment of the market, Ultraframe has designed
and developed new products focused on this growing segment and is broadening
its distribution channels. In particular, Uzone has been developed over
the last two years and the first of this product family has been introduced
to market, with new price points to trade.
With less than 20% of suitable homes having a conservatory, Ultraframe
is upbeat about defending and growing its market share and potential for
future growth as market leader.
Independent Market Research
Ultraframe's approach is backed by a comprehensive new independent study
carried out by the internationally renowned Henley Centre that identifies
a new generation of homeowners seeing the value of conservatories as a
real investment in their home.
The conservatory market is evolving from the traditional 55+ customer
who sees a conservatory as a life-style purchase, to the young more price
conscious customer who needs additional space in the home.
A slowdown in 'big ticket' home improvement spending, those larger cost
items and building adaptations, has resulted from the traditional, older
consumer currently being more concerned with volatility in pensions, savings
and equity markets.
The longer-term market outlook is of increased sales and growth, albeit
at a slower rate than experienced over the last 5-6 years across the sector
as a whole.
Levels of market penetration mean that there are over 10 million suitable
homes yet to install a conservatory, for continued opportunities for sales
and market growth in the future.
Market Leadership
Ultraframe says that its insight into past, present and future market
trends means the Company is well placed with the most comprehensive range
of products that represent all needs from the most complex and highest
performance, to the best appearance and the most cost effective.
Uzone technology will form a key part of the Ultraframe product range.
New products will be positioned at highly competitive price levels consistent
with the relevant market segments.
Ultraframe plans to introduce a simplified price book later this month,
unbundling the prices of the core roof systems to allow easier price comparisons.
To drive sales, the Ultraframe Registered Conservatory Installer Scheme
and its Essential Guide to Conservatories will target over 1,000,000 UK
homeowners.
For those households unable to consider a traditional conservatory design,
Ultraframe has introduced Litespace, with other products to follow that
open up the conservatory market to new consumer groups.
David Moore, Ultraframe Chief Executive said: 'During 21 years of trading,
Ultraframe has been instrumental in driving growth and development of
the UK conservatory market. We have developed a complete new range of
products for greater choice, based on the undeniable strength of Ultraframe
quality and innovation, to provide a real return to those customers who
have a long term interest in building a better business and their profits
to match.'
Heywood
Williams Express Guarded Optimism in AGM Statement
'In 2003 Heywood Williams experienced one of the most difficult and challenging
years it has encountered in its long history. It was a year of major structural
reorganisation, made necessary because an ambitious growth programme,
launched in 2001, failed to deliver on the promises made' Heywood Williams
Executive Chairman, Roger Boyes, said at its Annual General Meeting.
'A rigorous and detailed re-examination of operations took place during
the year, resulting in significant disposals, closures and balance sheet
write-downs. This process culminated with the sale, in early 2004, of
the trade fabricators Coastal and Cestrum Conservatories realising modest
proceeds above net asset value.
'The continuing operations were profitable in 2003 on a pro-forma basis
and with the reorganisation successfully completed, these businesses are
making encouraging progress towards their 2004 objectives and trading
in line with our internal targets. The plan to return Plastic Systems
to profitability continues to be progressed. The key objective is to regain
market share, which has been lost over recent years.
'Cash management remains a major focus in every part of the group, driven
by strict management from the centre, and new banking facilities have
been successfully agreed and put in place, for the period to June 2005.
'The UK, PVC windows, doors and conservatory market has been weaker than
expected in the first four months of 2004 and PVC resin prices have been
higher, but US markets have been in line with our projections. The manufactured
housing market enjoyed its first growth in March since early 2002 and
the PVC pipe market is enjoying improved margins as PVC resin prices have
risen in recent months. Overall, at this stage of the year, we continue
to work towards successfully achieving our full year objectives.'
mg
technologies Sells its Participation in Dynamit Nobel AG
mg
technologies ag has sold its participation in Dynamit Nobel AG, excluding
the plastics business, which is currently in negotiations with separate
bidders. The purchase price amounts to Euro 2.25 billion. The acquirer
is Rockwood Specialties Group Inc., a U.S.-based specialty chemicals company.
The transaction does not include the plastics division, since it is predominantly
an automotive supplier. To finance the acquisition, Rockwood will conduct
a capital increase, which will be backed by Kohlberg Kravis Roberts &
Co. L.P. (KKR), a leading private equity company, and Credit Suisse First
Boston Private Equity (CSFB Private Equity). The four business units to
be divested are CeramTec, Chemetall, Sachtleben and DNES (Custom Synthesis).
With annual sales of Euro 1.5 billion they represent about two thirds
of Dynamit Nobel's overall sales and more than three quarters of its operative
cash flows (EBITDA) in fiscal year 2003.
An agreement to this effect was notarised recently. Financing for the
transaction is already secured. Closing of the transaction is planned
for the third quarter of 2004. Completion will be subject to approval
by the supervisory board and annual general meeting of mg, as well as
by the relevant antitrust authorities.
Substantial step in mg's corporate re-alignment completed
Udo Stark, Chairman of the Executive Board of mg technologies ag, comments:
'The sale of these four Dynamit Nobel business units is a substantial
step towards mg's corporate re-alignment that we decided on last fall.
Furthermore, the combination of Dynamit Nobel and Rockwood will create
a global leader in specialty chemicals and advance materials. Selling
the businesses as a package to an industrial buyer with strong financial
backing by two private equity firms is in the best interest of all parties
including those of employees.' The divestment process for the two business
units Dynamit Nobel Kunststoff GmbH (Plastics) and solvadis ag will continue
as planned.
Significant expansion of growth opportunities
'As announced, the proceeds from this transaction will contribute to transform
our current net debt position into a positive cash position. This substantially
enhances our financial flexibility and creates a sound basis for future
expansion via organic growth and acquisitions', Udo Stark continued. The
purchase price of Euro 2.25 billion represents the enterprise value of
the four business units of Dynamit Nobel on a debt-free basis. The equity
value will result from the pension liabilities and bank debts that the
buyer will take over and will be derived from the closing balance sheet.
Global leader in specialty chemicals
Rockwood Specialties Group Inc. is a Princeton-based specialty chemicals
business focused on inorganic pigments, a variety of specialty additives,
specialty compounds and electronic chemicals. Rockwood had sales of approximately
Euro 700 million in fiscal year 2003. Dynamit Nobel and Rockwood represent
combined sales of about Euro 2.2 billion and count almost 10,000 employees
worldwide.
About Dynamit Nobel AG
With around 12,300 employees worldwide, Dynamit Nobel AG had sales of
about Euro 2.3 billion in 2003. This represents 36.4 percent of mg's total
sales. Dynamit Nobel AG is comprised of five businesses: Advanced Ceramics
(CeramTec AG Innovative Ceramic Engineering), Specialty Chemicals (Chemetall
GmbH), Pigments (Sachtleben Chemie GmbH), Custom Synthesis (Dynamit Nobel
GmbH Explosivstoff- und Systemtechnik) and Plastics (Dynamit Nobel Kunststoff
GmbH). Dynamit Nobel is an internationally active corporation that provides
specialty products for niche markets in many industries, including pharma
and cosmetics as well as the chemical and automotive industries.
Based in Plochingen, Germany, CeramTec AG is a global leader in
advanced ceramics. In 2003, the company's sales amounted to Euro 254 million,
with a headcount of 2,500 employees.
Frankfurt-based Chemetall GmbH is a leading global provider of
specialty chemicals in the areas of surface treatment, polymers and lithium.
With sales of Euro 586 million and 2,400 employees, the company is the
global No. 1 in lithium compounds and global No. 2 in surface treatment
for metal processing.
Sachtleben Chemie GmbH, headquartered in Duisburg, Germany, produces
white pigments, functional additives and water chemistry. The company
is the world market leader in titanium dioxide in anatase form for synthetic
fibres and in most of its functional additives application areas. In fiscal
2003, the company generated sales of Euro 339 million with approximately
1,200 employees.
Dynamit Nobel GmbH Explosivstoff- und Systemtechnik (DNES) is active
in the fields of advanced intermediates and active ingredients (custom
syntheses) for the life sciences industries. Located in Troisdorf, Germany,
the company is the global No. 1 in hazardous chemistry for custom syntheses.
In fiscal 2003, the company had sales of Euro 289 million with about 1,300
employees.
Dynamit Nobel Kunststoff GmbH, located in Weißenburg, Germany,
is a leading European manufacturer of thermoplastic and thermosetting
exterior plastics for the automotive industry. In fiscal 2003, the company
had about 4,900 employees and generated sales of Euro 876 million.
Sash
UK Enters the Uzone and Comes out with FitriteXpress
Sash
UK has recently launched a new product – the FitriteXpress conservatory.
This system is built for speed of installation and incorporates components
from some of the industry’s most respected and outstanding brands.
Backed
by more than £3m worth of investment, the Uzone roof from Ultraframe
quite literally clicks into place and being practically bolt free, it
takes under 90 minutes to assemble. This is further supported by profile
from Veka – recently voted number one overall and first for value
for money in an independent survey*.
David Ruzicka, Joint MD at Sash UK, says: ‘FitriteXpress has to be
the most outstanding product we have manufactured in the past decade.
It’s the ideal opportunity for installers to maximise their profits.
Although it’s a dream to install - reducing time, upheaval and costs,
the quality is by no means jeopardised. In fact, it is second to none.
The product even incorporates austenitic screws and hinges, fitted as
standard - as with all our products, and this is just one of the benefits
of the hi-tech, high quality product on offer.
‘These 304 grade stainless steel components ensure a longer life
than that offered by inferior grade stainless steel products. Considering
that 90% of Britain suffers from corrosion, it is plain to see how this
will benefit the majority of consumers.
‘This means that FitriteXpress will not only have a much longer life,
more importantly, it will stay in great condition with maintained quality,
appearance and strength.’
This product can be with you within 7 days. The price starts at £1,735
plus VAT. The conservatory is available in Victorian and Edwardian designs
and there are up to 28 variations in size.
* According to the 2003 Annual Benchmarking Study – the definitive
performance measure of the UK’s top 34 PVCu systems suppliers.
Tel
01226 719969
Web: http://www.sashuk.com
Tradelink
Joins the Global Network
Tradelink,
a UK trade fabricator, has been buying in a leading brand of conservatory
roofs for a number of years. But recently the company decided to manufacture
roofs. Before Tradelink took the final decision, it looked at all the
roof systems available to see if any could offer the range and versatility
it was looking for. Synseal Extrusions’ Global was the only roof
that fulfilled the criteria.
‘Since taking on the Global roof, customer response has been exceptional,’
says Bruce Morley, Sales Director of Tradelink. ‘I’m excited
by the prospects. The components are thicker and stronger than on other
roofs. You can see the strength in the PVCu capping which combined with
the thickness of the box gutter results in a great looking, strong roof.
There are also fewer unnecessary parts, which mean it’s less confusing
and easier and quicker to put together. The overall package, the quality
and a competitive price, means our customers can sell it on at a better
margin so everyone’s happy.’
Everglade
Joins the Quantal Network
To
welcome the company to the Quantal national network, Everglade Windows
was presented with a certificate celebrating the company’s membership.
Managing Director of Everglade, Vinod Gopal, received the framed document
from Tony Marshall, Director of Sales, and Ian Cocken, National Key Accounts
Manager, of Quantal.
Established 25 years ago by Vinod Gopal as a small, home-based company,
Everglade has grown into a thriving business, and is one of the leading
window fabricators in the London area. Increased production has led to
a recent move to new premises, more than doubling the size of the factory.
Vinod explains, ‘Our success is based on our offer to customers -
high quality, stylish, durable products backed up by a service that is
second to none.
‘In the years we have been trading we have come to know our market's
tastes and needs very well, and have grown our business by offering the
products that our customers really want.
‘The aesthetics, flexibility and strength of the Quantal roof complement
the classic lines of the company’s window systems to produce a conservatory
offer that satisfies the traditional tastes of Londoners. It stands out
from the crowd and gives Everglade a real edge in the marketplace.
‘We are delighted to be part of this exclusive network, and look
forward to working with Quantal to develop our growing conservatory business’,
concludes Vinod.
Tony Marshall adds, ‘We welcome Everglade to Quantal, and anticipate
a long and successful partnership with the company.’
Members of the Approved Quantal Fabricator and Retail Networks can enjoy
all the benefits of a product and support package. For further information
visit http://www.quantal.co.uk.
Ian
McInnes Leaves K2 After 5 Years
In
a joint statement, K2 has announced that Marketing Director Iain McInnes
will leave his role to pursue other activities after nearly five years
at the company.
Iain commented 'I have thoroughly enjoyed my time and experiences with
K2 over several exciting years but felt that the time was right to move
on to a new challenge.'
Managing Director Sally Fielding added 'Iain has been a fantastic asset
to the company and will continue to work in a consultant capacity in the
short-term on several key projects'.
'We fully expect to build on Iain's work to date to help cement K2's position
as a brand vying for the number one position' added Sally.
Planet
PVC Group Heads for New Heights with Opening of Birmingham Showroom
Planet
PVC Group Ltd, the UK conservatory installer, has announced the opening
of its latest showroom. The new 15,000 sq ft showroom opened last Bank
Holiday weekend and should be instrumental to Planet’s growth as
it looks to install over 200 conservatories a week by 2005.
Planet’s
chairman Dean St John commented: ‘This is a £500,000 investment
for Planet and this strategically positioned showroom will be our largest
to date. It will include 10 fully built lifestyle themed conservatories
along with a window and door gallery. The Midlands is key to our future
growth and the Birmingham showroom will enable Planet to further drive
its expansion throughout the UK.’
The showroom will have Planet’s new range of classical and contemporary
furniture designs together with a range of blinds.
Easily accessible at Link 1 industrial estate at junction one off the
M5, the new showroom officially opened on the May bank holiday but was
already open for business and receiving orders for conservatories in response
to its extensive promotional campaign.
The campaign includes TV advertising on Central TV together with a comprehensive
advertising schedule in the key regional titles. Opening offers include
free tiling for all conservatories and a ‘Win £5,000 worth
of conservatory’ competition (closing date for the competition was
Bank Holiday Monday).
Birmingham will be Planet’s 17th showroom, with another nine to be
opened before the end of the year. The company is aiming to achieve 90
per cent coverage of the UK and will then look to float on the Alternative
Investment Market (AIM).
Planet conservatories will be familiar to Midlanders after featuring several
times on Carol Vorderman’s ‘Better Homes’ TV show. In a
recent programme, a Planet conservatory won not only the episode, but
also first prize for the series for adding most value compared to other
improvements, such as new kitchens and bedrooms.
Running the Birmingham showroom are managing director, Bob Docker (43)
and sales director, Rod Sutherland (57), who have recently joined Planet
and have over 54 years experience between them in the PVC conservatory
and windows market. 25 new jobs have been created at the new showroom.
Dean St John said he was delighted to have attracted two such high quality
individuals to head up the new showroom. ‘Bob and Rod are well known
both within the industry and in the Midlands. Their combined background
will provide the ideal foundation for Planet to generate significant sales
in the region.’
Bob Docker and Rod Sutherland added; ‘Home owners find that adding
a conservatory provides a delightful room that is totally flexible. We
have built them for use as sun-lounges, dining rooms, home offices –
and even nurseries.
‘Our showroom displays give customers every opportunity to generate
ideas and discuss designs with the most experienced and professional staff
in the industry. We have an enormous range and every part of the conservatory
supplied by Planet is covered by a ten-year, insurance-backed guarantee
– including the base.’
The Tipton showroom will be the first in the country to sell Planet’s
new roofing system, which is heat-efficient and designed to meet the requirements
of the government’s new environmental regulations.
Planet has achieved a £50 million group turnover for 2003/04 and
is forecasting a £70 million group turnover for 2004/05. The company
has built the ‘conservatory dream’ for over 5,000 customers
in the past 12 months alone.
Planet was established in 1995 by the present chairman Dean St John and
has grown to employ over 500 people. ‘It’s great to have such
a strong foothold in the Midlands market via our new Birmingham showroom.
These latest developments are key elements of our growth strategy and
will ensure Planet further increases its market share,’ added St
John.
Tel: 01772 452225
Web: http://www.planetpvc.co.uk
Global Windows Announces Opening Date for Conservatory Village
Conservatory
company Global Windows has announced that it will officially open its
new window and conservatory village at Birley Moor Garden Centre in Sheffield
on the weekend of 19/20 June.
The new show village will feature six of the designs for conservatories
from Global, demonstrated in their natural environment – outdoors.
Visitors will also be able to view the extensive range of door and window
styles available from the company which recently achieved two awards for
customer service. Birley Moor is Global’s fifth show site in the
Sheffield area.
Managing director Russell Hulme explains: ‘We are really looking
forward to the opening of our new window and conservatory village. It
will be a flagship site and enable us to demonstrate our expertise in
high quality window and conservatory design and manufacture. We’re
planning a special event for the launch weekend, with a celebrity guest,
family entertainment plus a barbecue and refreshments available for all.’
Global’s show sites are located at Ferndale Garden Centre, Coal Aston,
Abbeydale Garden Centre, Abbeydale Road, Orgreave Drive, Handsworth and
Selig Parade, Gleadless.
Tel: freephone 0800 647080
Web: http://www.global-windows.co.uk
Pilkington
Chile Launches Window Assembly Franchise Scheme Throughout its Distribution
Network
The
first Ventana Express outlet was opened in Santiago in June, offering
a fast, 40-minute service to independent glaziers. Glass and aluminium
is cut and drilled to order as necessary and can then be assembled either
by the Ventana Express team or by the customer. Fittings are also available.
Traditionally, distributors in Chile have sold glass and the aluminium
separately and unprocessed, leaving individual glaziers to assemble their
own window units for sale and installation. Now, backed by Pilkington
advice and expertise, Ventana Express is designed to offer a faster, cheaper
and higher quality assembly service.
The new business concept is aimed at opening up a value-added market for
distributors, as well as making an expert assembly service available to
glaziers and improving the general standards of window units for sale.
Sales at the first Ventana Express have increased steadily since it opened
and other distributors have already shown interest in taking up the franchise
offer.
Vitro
Reinforces Leadership in Domestic Market
Mexican glass manufacturer Vitro aims to revolutionise its domestic glass
market by offering a Solution Centre for construction and interior design
glass requirements, applications and use, by opening its first of 150
stores located in approximately 100 cities in the country.
In order to promote growth and profitability among its glass distribution
channel by better integrating them to its value chain, to be closer to
its final consumers by achieving and anticipating their needs, as well
as to consolidate its market share in Mexico, Vitro has launched Vitromart,
its new store chain dedicated to distribution of architectural and construction
glass by which Flat Glass initiates the integration of 150 stores in 100
cities in Mexico.
With the opening of Vitromart El Castillo, located in the San Nicolas
de los Garza, a suburban area of Monterrey, Mexico, Vitro takes important
steps in its strategy of supporting its customers that have a key position
and experience in the glass market, and through this effort strengthen
the construction and interior design glass value chain to benefit its
final consumers.
Vitromart, the solution centre for construction and interior design glass
requirements, applications and use, will meet the needs of architects,
construction professionals, interior designers, installers, product processing
businesses, as well as of retailers, furniture manufacturers and home
owners.
There are three key objectives of this new distribution store chain in
Mexico:
1. To promote growth and profitability among Vitro's glass distribution
channel by better integrating them to its value chain.
2. To be closer to its final consumers by achieving and anticipating their
needs.
3. To consolidate its market share in Mexico.
'Vitromart will strengthen the construction and interior's design commercial
channel by integrating its dealers to the distribution process in order
to support their profitability and growth', said Humberto Flores, Flat
Glass' Commercial Director.
'There are several advantages for customers who buy their products and
services at every Vitromart shop; first, they will find an integral solution
to their construction and interior design glass challenges; second, they
will have access to best quality products and services; third, there will
be solutions for each customer's problem; fourth, competitive prices;
fifth, we guarantee safety products; sixth, they will have access to the
wide variety of Vitro's products in the same store, and the seventh reason
is that our dealers will have the important support of know-how and experience
of a Company that has been serving the market for close to 100 years.
IMI's
Improvements Based on Investement in Czech Republic, Mexico and China
Gary
Allen, Chairman of IMI plc, said at its 2004 AGM: 'Our cost base is significantly
lower than three years ago, partly by reorganisation and also by major
investments in new factories in the Czech Republic, Mexico and China –
they are impressive developments which have improved our competitive position
without diminishing our reputation for quality and customer service.
'We also continued with reshaping our business portfolio by a combination
of both acquisition and divestment, putting IMI in an excellent position
for growth.
We have achieved these objectives and at the same time maintained a good
level of operational performance with higher profits and improved the
strength of the balance sheet with another year of substantial cash generation.
Group sales of continuing businesses were £1,565m (2002 : £1,453m),
including £68m from acquisitions. Volumes in the second half were
some 5% higher, leaving the year as a whole around 3% ahead on a like
for like basis.
Profit before tax, rationalisation costs, goodwill amortisation and exceptional
items increased by 8.4% to £142.6m (2002 : £131.5m).
Rationalisation costs for the year at £5.7m were at a more normal
level compared to the significant restructuring costs of £32.2m
in 2002 and £44.6m in 2001.
The resulting profit before goodwill amortisation, exceptional items and
tax was £136.9m (2002 : £99.3m) and profit before tax at £117.2m
(£74.3m) was some 58% ahead of last year.
Once again all our businesses generated excellent cash with further reductions
in working capital producing operating cash ahead of operating profit
for the third year running. Balance sheet gearing at the year end was
25% (2002 : 33%), with net borrowings reduced to £136 million (2002
: £173 million).
We gave an update in March on the European Commission’s investigations
into copper plumbing tubes and fittings and have no further developments
to report.
The Board is recommending the payment of an unchanged final dividend of
9.5p making a total of 15.5p (2002 : 15.5p) for the year. It was the Board’s
intention at the outset to maintain the dividend during the three-year
programme of restructuring and repositioning : our strong cash performance
has meant that our cash cover has been more than adequate throughout.
It is the Board’s intention to return to a progressive dividend policy
at the earliest appropriate opportunity.
In view of the Higgs report on corporate governance and the Smith report
on the work and the role of audit committees, both now reflected in the
Combined Code, the role, duties and responsibilities of non-executive
directors have been significantly increased and we will need to strengthen
still further the number of non-executives on the Board.
Turning now to current trading. Encouragingly, the improvement seen in
the second half of last year has continued into the first four months
of 2004. Order books are around 7-8% higher and overall volumes around
5% ahead.
Despite continued pressure from raw material prices and the impact of
the stronger pound on reported profit, we look forward to being able to
report good progress in our interim results statement in September.
In accordance with our usual practice, it is our intention to issue a
trading update on 30th June 2004, which will comment in more detail on
current trading'.
RoofWright Links to Clear Thinking for Glass Optimisation, and Announces Increase in Timber Customers
According
to RoofWright, interest in timber windows and conservatories is on the
up. Whether out of successful marketing, spiritual desire or in recognition
of timber’s energy saving qualities, wooden conservatories are apparently
making a come back.
Sustained interest since Glassex has seen RoofWright sending out more
editions with timber settings in its 21st century software than ever before.
This means that more timber suppliers and manufacturers are using RoofWright
to design, sell, price and fabricate timber conservatories and are enjoying
the same benefits of precision and accuracy as that afforded to the PVCu
industry.
Meanwhile,
RoofWright’s latest version 5.7 incorporates a new feature to minimise
wastage by providing a link to a Glass Optimisation programme created
by Clear Thinking Software. This software automatically takes the sizes
of the roof sheets for any RoofWright drawing and aligns them with the
glass stock sheets in the most efficient way thereby minimising wastage
with the minimum delay.
Visit http://www.roofwright.com
for the full RoofWright feature list and http://www.clearthinkingsoftware.co.uk
for glass optimisation details.
BPF
Reaches Agreement with ‘Plastics-Europe’
The
British Plastics Federation has in principle concluded a three year agreement
with the European resin producers association ‘Plastics-Europe’,
which was formally constituted on 17th May.
The agreement will cover: affiliation of Plastics-Europe to the BPF, location
of Plastics-Europe’s North Region office in the BPF’s London
offices and provision of a range of services to their North Region office.
Plastics-Europe’s North Region office will look after resin producers’
interests in UK, Ireland, Norway, Sweden, Denmark and Finland. The BPF
will work closely with Plastics-Europe and other affiliates to be the
‘One Voice’ for the UK Plastics Industry.
Resin producers will continue to be welcome as full, corporate members
of the BPF, to guarantee full access and involvement in strategic decision
making.
The British Plastics Federation says that it 'looks forward to many years
of a close and productive co-operation with Plastics-Europe and wishes
the new Association a long and successful future.'
Newdawn
Conservatory Leads to Expansion at Cleveland
Demand
from trade customers has contributed to expansion for Newdawn customer,
Cleveland Conservatories Ltd. The Middlesborough-based company has relocated
within the town due to the continuing popularity of the Newdawn conservatory
roofing system and a loyal customer base that has quickly built up in
the Middlesborough and surrounding areas.
The
move to 8000 sq ft premises in Snowdon road is in response to business
growth of over 60% in the last year and the need for more production space
for window and conservatory roof manufacturing together with the development
of the trade kit roof division under the ‘Unique’ name.
Managing Director Russell Freeman explains: ‘We have experienced
excellent business growth and simply outgrown our old factory on the Riverside
Park Industrial Estate, hence the need to move. Having more space enables
us to concentrate more on sales of full package conservatories and capitalise
on demand from our trade customers.
‘We chose the Newdawn roof because we were impressed with its quality,
value for money and ease of fabrication, and our trade customers share
this view’, adds Russell who started the business with his sister
Ruth Blackwood in April 2000.
Cleveland Conservatories has also recently completed its biggest and most
prestigious project to date demonstrating the company’s specialist
capability in this sector. This impressive hardwood conservatory topped
with a brown Newdawn roof measures 7.3 metres by 6.1 metres and was carefully
designed to enhance the aesthetics and rural setting of the new home at
Yarm, Stockton-on-Tees.
Hardwood was chosen to complement the home’s character, while the
glass roof features Pilkington K glass for greater thermal efficiency
and to comply with the Document L Building Regulations.
Russell explains: ‘Because of the span and weight of the roof, we
used two five-way tie bars for added strength and installed four electronic
roof vents for efficient ventilation. The conservatory is used all-year
round by the family as a second living room and for entertaining.’
Tel: 01789 764444
Email: mailto:sales@newdawn-sun.co.uk
Alcoa
to Purchase RUSAL's Samara and Belaya Kalitva Facilities, Expanding Alcoa's
Russian Presence
Alcoa
and RUSAL recently announced an agreement in principle under which Alcoa
will purchase RUSAL's controlling interests in two fabricating facilities
in Samara and Belaya Kalitva in the Russian Federation. Terms of the transaction
are not being disclosed at this time. Closing, subject to government approvals,
is expected to be completed by June 30th.
As part of Alcoa, the two fabricating facilities will serve not only the
domestic Russian market but will also focus on global customers in Europe,
Asia and the Americas.
'This acquisition is part of our plan to continue to profitably grow our
company by expanding our global footprint,' said Alain Belda, Alcoa Chairman
and CEO. 'This initiative expands our business in Russia and positions
us to better serve customers throughout the world.'
The parties are also entering into long-term arrangements for the supply
of metal to the two plants and for Samara to continue its supply of can
stock and other products to RUSAL affiliates. Separately the parties are
also entering into a long-term alumina supply arrangement.
RUSAL CEO Alexander Bulygin said, 'This transaction arises from RUSAL's
strategy to focus on its strengths upstream, as a leading producer of
primary aluminium and alloys. While we saw much promise in these two plants,
we felt that to truly prosper they needed to be part of a company with
a strong international downstream customer base.
'We are delighted to be entering into a working relationship with Alcoa
in Russia,' Bulygin said. 'We welcome Alcoa and regard this transaction
as a vote of confidence in the future of Russia's economy. We believe
that the plants will flourish under these new arrangements, enhancing
and strengthening the regional economies in Samara and Rostov.'
'The strong product breadth and unique capabilities of these plants -
along with their very capable workforce - will enable us to integrate
these facilities over time and strengthen our downstream businesses,'
said Belda. 'Adding these assets will support our growth opportunities
in the commercial transportation, aerospace, automotive and packaging
markets,' Belda continued.
'We have a proven track record of taking fabricating assets - such as
those in Hungary, Spain and Italy - integrating them into Alcoa, and putting
them in a strong position to grow profitably,' said Belda. 'These countries
have provided additional growth opportunities to Alcoa once we began operating
in them and we look forward to the chance to grow further in Russia in
the future. We plan to invest capital as well as technology and know how
(such as the Alcoa Business System) to strengthen the ability of these
plants to compete in the world market. We look forward to participating
in a vibrant and growing Russian market as well as giving our existing
customers outside of Russia a broader range of products.'
Samara and Belaya Kalitva Facility Overview
The Samara facility is located about 500 miles southeast of Moscow. It
features cast house, flat rolled products, extrusion, and forging capabilities
and serves customers in many markets, including transportation, packaging,
and industrial products. The facility includes forging and extrusion presses,
and has sheet rolling and coating capabilities similar to Alcoa's large
plants in the U.S. The plant's production and quality control systems
have been ISO 9001/9002 certified and is preparing for the ISO 14001 certification
in Ecological Management.
The Belaya Kalitva facility is located about 500 miles south of Moscow.
The facility also features cast house, flat rolled products, extrusions,
tubes, and forgings capabilities. The Belaya Kalitva facility has specialised
plate rolling and finishing equipment that will complement and increase
the present supply position. With Alcoa technology and management systems,
the plant will eventually earn the right to produce products for major
customers in the west. The plant is ISO 9001 certified and is preparing
for the ISO 14001 certification in Ecological Management.
The two facilities will join Alcoa's flat rolled products manufacturing
system with operations in the U.S., Europe, Australia, China, and Brazil;
the company's extrusion facilities in the U.S., Europe, Brazil, and China;
and its wheels and forged products system with facilities in the U.S.,
Mexico, Japan and Europe. The facilities will become part of the Alcoa
Europe organisation.
IGA
and NGA Announce Agreement for Joint Cooperation
The
Independent Glass Association (IGA) and the National Glass Association
(NGA) have announced an Agreement for Joint Cooperation to benefit members
of both associations. The agreement was reached recently after months
of talks between the IGA and NGA staff.
In the agreement, IGA members will be entitled to receive NGA member discounts
for training through NGA's Auto Glass Technical Institute, NGA's auto
and flat glass certification programmes, and NGA products without having
to join the NGA.
Heather Trusty, Vice President, Professional Development & Certification,
explains, 'Glass installation is often not taken seriously, but poor installation
practices can literally mean the difference between life and death. We
at the NGA are pleased to work together with the IGA toward the goal of
increasing the professionalism of glass technicians. NGA takes consumer
safety very seriously.'
The IGA will lend assistance to the NGA in promoting the licensure of
auto glass installers and glaziers in every state. IGA CEO Tim Smale will
participate in NGA's State Government Committee and work with IGA State
Chapters and members nationwide to begin a campaign calling for states
to require mandatory licensing for all glass installers. 'Part of our
mission is to promote consumer safety, and no one should be allowed to
install glass without proper training and proof of competency,' said Smale.
'By partnering with the NGA, IGA members will have affordable avenues
to receive additional training and educational tools and to receive certification
for technicians, which will result in more lives saved', said Leo Cyr,
Vice President of NGA's Auto Glass Division, 'this is a positive step
by both associations to ensure the safety of the American public.'
Founded in 1948, the National Glass Association is the largest trade association
representing the entire flat glass industry. Based in McLean, VA, NGA
offers certification, education and training, and serves the industry
with the leading trade publications-Glass Magazine, Window & Door,
and AutoGlass. NGA currently hosts GlassBuild America: The Glass, Window
& Door Expo and the National Auto Glass Conference & EXPO.