GP&T:
Promac in a Charity Production
The
main feature of the Promac Glass Division
display on Stand G10 at GP&T will be a fully working complete automated
IG production line.
During the exhibition, with the assistance of Express Glass Group, these
machines will be making custom sized sealed units for delivery and installation
at a new private hospital after the show, with all proceeds being donated
to charity.
In addition, various glass cutting tables as well as robot sealing and
profile bending machines will also be shown. In all, Promac Glass Machinery
Division will be presenting over £500,000 worth of glass processing
machines, including the newly launched For.El EG2200 automatic vertical
arrissing machine, which is said to be unique to the world market and
the first time it has been shown in the UK.
Promac would like to thank the following companies for their contribution
to a very worthwhile cause:
Float Glass Industries for donating the glass
Bostik Findlay for the hot melt
For.El
Clear Thinking Software
Express Glass Group
Immediately after the show most of the machines on display will be delivered
and installed at All in One Windows, Sternfenster, and Express Glass Group.
Tel: 01788 577577
Email: mailto:sales@promac.co.uk
Web: http://www.promac.co.uk
Pilkington
Interim Results 30th September 2003 Show 11% Increase in Pre-Exeptional
Profit
'The Group’s results in the first six months of the year confirm
the expectations we set out in our previous statements, reflecting continued
difficult trading conditions in most of our markets' says Pilkington Chairman,
Sir Nigel Rudd. Despite the market background and a reduction in operating
profits of our joint ventures and associates, Group profit before amortisation
of goodwill, exceptional items and taxation was up 11 per cent on the
first half of 2002, underpinned by the efficiency improvements resulting
from the extensive restructuring of recent years. In addition, our recent
emphasis on free cash flow generation has enabled management to deliver
a strong cash performance, enabling Pilkington to pay down debt by 10
per cent, in line with our stated objective of strengthening the financial
position of the Group.'
Key Features:
• Robust results despite tough trading conditions
• Operating profit including joint ventures and associates £114
million – up 4 per cent on the first half of last year
• Profit before goodwill amortisation, exceptional items and taxation
£84 million – up 11 per cent
• Earnings per share excluding exceptional items up from 2.7 pence
to 3.8 pence, basic earnings per share up from 2.8 pence to 3.1 pence
• Interim dividend maintained at 1.75 pence per share
• Free cash flow, before the benefit of disposals improved from £47
million to £89 million
• Borrowings reduced by 10 per cent in six months to £775 million
Turnover in the first half year including joint ventures and associates
was £1.4 billion, the same as the first half of last year. Operating
profits of Group businesses of £98 million represented an increase
of £11 million over the first half of last year, when results were
affected by a series of plant closures for routine repairs. Operating
profits of joint ventures and associates fell £7 million to £16
million. This was mainly due to reduced profits at Vitro Plan SA de CV
(VVP) in Mexico, and the temporary halt to production during the first
half year at the Group’s joint venture float plant in France.
Exceptional items in the half year amounted to £9 million and arose
from the termination of the Automotive Glass Replacement operations in
New Zealand and the Building Products toughening and laminating operations
in Brazil.
Regulatory approvals for the sale of the Pilkington Aerospace business
to GKN have been obtained and the disposal was completed at the end of
September 2003. The disposal generated net proceeds of £42 million;
after the write off of £4 million of goodwill, previously written
off directly to reserves in past years, there was no impact to the profit
and loss account.Earnings per share before exceptional items increased
from 2.7 pence to 3.8 pence, and basic earnings per share increased from
2.8 pence to 3.1 pence. The interim dividend has been maintained at 1.75
pence per share, and will be paid on 19th December 2003 to shareholders
on the register at 5th December 2003.
Free cash flow (net cash inflow before dividends, before acquisition/disposal
proceeds) of £89 million was £42 million better than the first
half of last year, which represents a formidable achievement in tough
worldwide market conditions, and demonstrates the vigour with which Pilkington
is targeting the generation of cash as part of its strategy. Together
with the £40 million of cash received in respect of the Pilkington
Aerospace disposal, this enabled net debt to be reduced by 10 per cent
in the first half year to £775 million.
Building Products
With the exception of the UK and Australia, Building Products markets
have continued to be weak and Building Products sales, excluding joint
ventures and associates, of £628 million, were just ahead of the
first half of last year. Efficiency improvements and cost savings resulted
in operating profit before amortisation of goodwill being maintained at
£67 million.
In Europe, our Building Products business, which represents around two
thirds of Building Products in total, continues to be adversely affected
by the economic situation on the continent, particularly in Germany. By
contrast, trading performance in the UK has held up well, supported by
good sales of energy-saving Pilkington K Glass™. On average float
prices across Europe are slightly down since the beginning of the financial
year.
Building Products North America, representing 14 per cent of total Building
Products sales, continues to be affected by the weakness in commercial
construction, where Pilkington is the leading North American glass supplier.
Office vacancy rates are high, making near-term market improvement unlikely.
However, operational improvements continue to come through from the North
American 'Step Change' programme, lifting operating profits over last
year, despite the difficult commercial construction market.
Building Products sales of our 35 per cent Mexican associate, Vitro Plan
SA de CV (VVP) were £76 million, a reduction of approximately 12
per cent, due to competitive pressure in the domestic market. Export sales,
on the other hand, benefited from the weaker peso. The one-off closure
costs of a patterned glass line also impacted operating profits.
In South America our Building Products businesses continue to perform
well. Market conditions in Brazil are difficult, but we are benefiting
from the improved economic environment in Argentina. Overall operating
profits from South America are ahead of the first half of last year. Our
Australasian business, with 11 per cent of Building Products sales, continues
to perform well with profits at a similar level to this time last year.
In China, the Group’s main investment, SYP, has seen both sales and
profits increase over the comparable period, with growth coming from improved
sales of processed architectural glass products, as China experiences
increased demand for more high performance glass in construction projects.
In September we announced the formation, with Emerging Markets Partnership
(EMP), of a 50:50 joint venture to construct and operate a float glass
plant in the Moscow region of Russia. The investment will be financed
by £21 million of equity each from Pilkington and EMP, and from
project loans. Pilkington’s equity investment will be made over the
next two years. The plant, to be built and operated by Pilkington, will
have a sales capacity of approximately 240,000 tonnes per annum and is
planned to come on stream in 2005. The plant represents a first step in
establishing a growth opportunity for Pilkington in Russia, an important
expanding market for glass.
Automotive Products
Despite subdued automotive markets, successes with new models featuring
Pilkington glass resulted in Automotive Products sales, excluding associates
and joint ventures, rising 3 per cent to £614 million. Continued
good progress in cost reduction and manufacturing improvements lifted
operating profit before amortisation of goodwill to £44 million,
19 per cent up on the first half of last year.
Just over half of the Group’s Automotive glass sales take place in
Europe. Whilst light vehicle production in the Western European market
slowed in the first half year, sales of Pilkington Original Equipment
(OE) products increased, with good gains on new model introductions and
higher shipments of specialised OE applications (bus, coach and truck).
The European Automotive Glass Replacement (AGR) business has held up well.
In total European Automotive profits are up, due to sustained improvement
in manufacturing efficiencies and a relentless focus on cost reduction.
Approximately 40 per cent of the Group’s Automotive business is in
North America. Despite regional light vehicle build running around 5 per
cent down on last year, demand for Pilkington OE products held up well.
The North American aftermarket was also down, which together with competitive
pressures resulted in lower Pilkington AGR sales. Nevertheless the business
continues to benefit from operational improvements, and overall profits
in Automotive North America are at similar levels to last year.
In South America, representing approximately 5 per cent of the Group’s
total Automotive glass sales, Pilkington sales were ahead of last year
despite lower light vehicle production. The combination of higher sales,
increased productivity and improved plant efficiencies has resulted in
an increase in our operating profits in the region.
Results in Australia show improvement over last year, reflecting efficiency
improvements and a more favourable trading environment.
VVP automotive glass sales were £36 million, down 19 per cent. In
China, the vehicle market continued its rapid growth with light vehicle
production up 18 per cent. Sales of our Chinese automotive subsidiaries
increased by over 20 per cent.
Web: http://www.pilkington.com
OFT Welcomes New Model Contract Terms from GGF
The
Glass and Glazing Federation (GGF) has recommended a clearer and fairer
model contract to its members following discussions with the OFT. The
improved model contract gives consumers a fairer deal with better cancellation
rights and greater prominence to the GGF dispute resolution procedures.
The model contract provides a blueprint for fairer terms in the sector
covering matters such as:
The survey process
The GGF's old model terms did not deal adequately with the survey process.
Some 'subject to survey' clauses are potentially unfair because they can
be used by suppliers to get out of agreed contracts without proper justification.
The new model terms limit the scope for unfair use by including the following
safeguards:
i) the supplier commits to carrying out a survey at the time agreed with
the consumer, but no later than 14 days after signing the contract;
ii) full details of the survey findings are to be given to the consumer;
iii) both consumer and supplier have equal cancellation rights if the
survey reveals unforeseen additional work at extra cost, or that the property
is unsafe or unsuitable for the work to be carried out; and
iv) where the contract is cancelled following an adverse survey, any deposit
will be returned to the consumer.
If there is a dispute between the parties, the consumer can use the GGF's
independent dispute resolution service.
Delay in commencement of the installation
The old term provided that before being able to cancel without penalty,
the consumer should allow the supplier a further six weeks after the date
agreed in the contract to complete the installation. The consumer was
also entitled to a refund for work paid for but not completed. The revised
term now enables the consumer to require completion after the date agreed
in the contract, within any shorter period that may have been agreed between
the supplier or salesmen, either verbally or in writing. In addition,
the revised term also provides that the consumer is entitled to recoup
additional costs of getting another supplier to complete the work.
Here too, the consumer is free to use the GGF's dispute resolution service
if agreement can't be reached on how much is due to the consumer, or due
to the supplier for work done.
Payment on satisfactory completion
Previously the model contract required payment of the balance when the
products had been properly installed in accordance with the contract.
This term has been improved to ensure that the consumer is not restricted
from withholding a proportionate amount until the installation is completed.
The new term provides that payment of the remaining balance is now required
only when the consumer is reasonably satisfied with the completed work.
Damage caused to property
The supplier now accepts liability for any damage caused to property,
over and above that necessary for the completion of the work, if it was
caused by his lack of reasonable care and skill.
John Vickers, OFT Chairman, said:
'We are pleased that the Glass and Glazing Federation asked us for comments
on its draft model terms. The result is a new model contract for GGF members
that is clearer and fairer for consumers. This should also be good for
all fair-dealing suppliers.'
Fortune
Brands Acquires Therma-Tru Door
Fortune
Brands Inc.’s Home and Hardware business has signed an agreement
to acquire Therma-Tru Corp., the manufacturer of residential entry doors
based in Maumee, Ohio in a transaction valued at approximately $925m.
A diversified company with annual sales of $6 billion, Fortune Brands
include Moen, a market leading manufacturer of taps, and MasterBrand cabinets,
said to be the number two brand in kitchens and baths. With annual sales
of over $400 million, Therma-Tru is reported to have a leading market
share of 25 percent, and a substantially higher share in the entry door
business's fastest-growing segment, fibreglass entry doors.
'Therma-Tru fits our focus on leading brands, shares beneficial demographics
and market fundamentals with our other home products brands, and creates
valuable sales growth and cost synergies within our $3 billion Home &
Hardware business' says Norm Wesley, Fortune Brands chairman and CEO.
'Like kitchens and baths, entry doors add significant value to the home
and are among the highest-return improvements homeowners can make. We
expect Therma-Tru to be another high-impact, high-return addition from
the start.'
'We see opportunities to leverage our strong customer relationships in
both the replace/remodel and new construction channels to further grow
Therma-Tru, and to use our combined purchasing power and best practices
to achieve cost and asset savings,' adds Bruce Carbonari, president and
CEO of Fortune Brands' Home & Hardware business.
Based in Lincolnshire, IL, Fortune Brands has operating companies in home
and hardware products, spirits and wine, golf equipment and office products.
In addition to Moen faucets, home and hardware brands include Aristokraft,
Schrock, Diamond and Omega cabinets, Master Lock padlocks and Waterloo
tool storage sold.
Unilock
Products is Re-Equipped
Over
the past 12 months Unilock Products, located in Radstock, has undergone
extensive development to improve manufacturing and supply services for
HLS Group companies and outside clients. These include the installation
of a new powder coating plant in order to increase throughput speed and
enable faster changes of colour to be made. Machinery for spiral wrapping
aluminium sections to minimise the risk of transit damage has been purchased
and is now operational as is new equipment for silicone glazing.
The engineering shop has been re-equipped with additional routers, mitre
saws and drilling machinery and a new fork truck has been purchased for
the warehouse in which additional racking has also been installed to cater
for the increased stockholding. This includes the Fasttrack version of
the Mistral partitioning system for which many powder-coated components
are now available off-the-shelf in three standard colours.
This is all combined with an updated computerised order processing system
so that Unilock Products is now well placed to deal with clients’
requirements with maximum efficiency.
Web: http://www.hlsgroup.com
New
Man at the Helm for Palram
Palram
Europe's UK Sales and Marketing Director, David Melamed is leaving to
take up a new technology, research and development role with the group
in Israel. He will be succeeded by Mark Pacey, Managing Director of Sheffield-based
Century Plastics Ltd, on December 1st.
David's
move is the culmination of a 30-year career with the thermoplastic sheet
specialists and four and a half years at Palram's UK helm, during which
time he helped to more than double UK turnover.
His successor, Leeds-born Mark Pacey, is also known as an innovator. During
an early career in research and development he worked with Barry Pacey
to develop and patent the thermo-formed road marking system seen commonly
on roads today.
Mark, 51, brings more than 30 years' experience in the stockist and distribution
market to his new role.
He began his career in the 1970s with British Oxygen in chemicals research
and thermoplastics joining Visijar Tuckers - later VT Plastics - in the
early Eighties. He worked as a storage and handling equipment specialist
before taking on the role of branch manager at the company's successful
Newcastle and Sheffield branches.
Moving to Century Plastics in 1994 and becoming Managing Director in 1998,
Mark has overseen the company's expansion and spearheaded new initiatives
to build and develop the skills of the workforce, culminating in the company
being granted Investors in People accreditation earlier this year.
He promised to bring the same focus to his new role: 'I want to ensure
that the company continues with the excellent work demonstrated by David
Melamed over the last four and half years.
'I am looking forward to continuing with his work developing new business
and new markets and will be focusing in particular on company branding.
But I see this as much more than logos - it's about quality of customer
service and people who believe in the brand.
'My aim is to continue to build Palram into a UK market leading company
with a workforce of people happy to go the extra mile.'
Mark Pacey is to work alongside David Melamed on a joint hand over period
from November 1st.
Welcoming him to the Palram helm David said: 'Mark brings with him a wealth
of experience in the industry and the loyalty of his staff is a testament
to his skills as MD. I am confident that the future of Palram, its employees
and its clients, is in safe hands.'
Tel: +44 (0) 1302 380720
Email: mailto:david_m@palram.co.uk
£1m
investment at Planet, and New Management
A one million pound investment in the latest state of the art manufacturing
technology has been installed at the Walton Summit manufacturing site
over the past four weeks. After an intense period of delivery, set up
and commissioning, Stuart Prescott, Manufacturing Director and Mike Batley,
Works Maintenance Engineer, have completed this latest phase in the expansion
of Planet's manufacturing capacity on schedule.
Stuart has also just returned from visiting Planet's equipment suppliers
where he was briefed on the next generation of technical advances being
planned. These, when available, will help maintain Planet's reputation
in the industry for using only the latest, state of the art manufacturing
equipment.
With effect from October 1st 2003, Allan Mitchell becomes Franchise Director
for the company.
'Allan's contribution to date and successful track record in franchise
recruitment since he joined Planet made him the obvious choice for the
role.' said John Beaty. John, who now becomes Business Development Director
for the Group based at Walton Summit, will initially be working closely
together with Allan planning the growth strategy for 2004. Allan has been
set an ambitious target and will be working to sign up and open for business
a total of 8 new branches in 2004.
'Obviously I am delighted with my appointment and the chance it gives
me to continue building on the work done to date on growing the network.
It is exciting to be helping meet the challenge of making Planet the UK's
market leader in the conservatory installation business.' adds Allan.Ray
Railton has recently been appointed Training Manager for the Planet Group.
Ray will be involved in people training, with special emphasis in the
technical aspects of the double glazing industry including sales, surveying,
building and installation departments.Ray himself is a craftsman trained
joiner by trade and spent the bulk of his career, 22 years, at one of
the major names operating in the market where he held the positions, at
various times, of Installations, Surveying and Technical.
Tel: 01772 452225
Web: http://www.planetpvc.co.uk
KBE
Achieves another Production Record
KBE
Window Systems’ Berlin Plant achieved record production output in
excess of 10,000,000 metres of PVCu Window and Door profile per month
in both September and October. The company says that ‘this level,
when added to the monthly output of KBE’s Moscow plant, clearly positions
KBE as one of the world’s leading producers of PVCu profile.’
Hans Pabst, KBE’s Export Director said ‘I am delighted with
the performance from our Berlin Production Unit, as our need to achieve
these monthly production totals appears to continue right through to the
end of 2003, with healthy signs of strong performances in a number of
our markets.
‘Whilst our home market (Germany) remains somewhat suppressed, we
are seeing healthy signs of growth in the UK, Ireland and Russia. This
growth is being achieved through increased business from both existing
fabricators and with new clients, converting to the well proven, post
co-extruded, pre-gasketed, KBE Chamfered System.’
Pabst continued ‘Although KBE will be reaching its 24th Anniversary
in 2004, we are still experiencing exciting times and significant growth
in new market areas. We expect to be announcing further breakthroughs
in both the Middle East and American markets shortly’.
KBE Window Systems’ UK operation is based in Tamworth and services
the whole of the UK and Northern Ireland, with deliveries coming in from
the Berlin plant either to stock or direct to fabricators throughout the
country.
Founded in 1980, KBE Window Systems has become one of the leading PVCu
profile suppliers in Europe and is part of the Profine International Profile
Group. Profine unites the experience and know-how of the leading specialists
in plastic profiles and consists of KBE, Knipping, Kömmerling, and
Trocal, combining the technological innovative power of the European market
leader with the flexibility of the four individual companies.
Tel: 01827 311059
Email: mailto:sales@kbe.info
Kyro
Group Reports 36% increase in Profits for Q1-3 2003
'Kyro's
strategy is to grow organically and through acquisitions. During 2002
and 2003 growth has been sought through acquisitions, which within the
Glaston Technologies business area have made its machinery group number
one in the world of glass processing machinery and its glass processing
group the leading comprehensive supplier of architectural glass in Finland,'
says President Pentti Yliheljo.
• Net sales grew by 55% to EUR 156.1 (100.7) million
• Operating profit before amortisation of goodwill grew by 38% to
EUR 14.7 (10.6) million
• Profit before taxes grew by 36% to EUR 13.0 (9.5) million
• Equity ratio was 59.3% (76.7%)
• Order book grew to EUR 82.9 (65.1) million
• A good order book indicates a strong final quarter
'The net sales and profit of the Kyro Group have improved strongly in
2003 following acquisitions, new product introductions and improved logistical
efficiency. The business model of Tamglass and Z. Bavelloni, acquired
in January, which aims at comprehensive deliveries, has gained an excellent
reception from glass processors.'
'The expanded machinery and glass processing groups within Glaston Technologies
have both been capable of growing their volumes and strengthening their
market shares in a difficult market situation. The order intake and the
order book for the business area grew clearly during the third quarter.
This together with a favourable energy market provides a solid foundation
for a good result by Kyro for the final quarter and the whole year,' Yliheljo
estimates.
Kyro Group Structure
Kyro's Safety Glass Technology business area has expanded through acquisitions
to become the Glass and Stone Technology business area, which operates
under the name of Glaston Technologies. It consists of a global glass
processing machinery business and a local glass processing business, which
focuses on the markets in Finland and neighbouring areas. Kyro's second
business area is Energy, which consists of the energy supplier Kyro Power
Oy.
With regard to companies acquired in 2002 and 2003, Uniglass Engineering
Oy has been consolidated in the financial statements of Kyro Group as
of 1st May 2002, Finton Parvekejärjestelmät Oy as of 1st November
2002, and Z. Bavelloni, Glasto, and Suomen Lämpölasi Oy as of
1st January 2003.Net Sales and Profit
Kyro Group net sales in January-September grew by 55% over the previous
year to EUR 156.1 (100.7) million. The weakening of the U.S. dollar and
other billing currencies against the euro has had a slowing effect on
volume growth.
Group operating profit before amortisation of goodwill grew by 38% to
EUR 14.7 (10.6) million. Its share of net sales was 9.4% (10.5%). Operating
profit after amortisation of goodwill grew by 17% to EUR 12.3 (10.5) million,
at 7.9% (10.4%) of net sales. Amortisation of goodwill amounted to EUR
2.3 (0.2) million, and unamortised goodwill stood at EUR 55.2 million.
Net financial items amounted to EUR 0.6 (-0.9) million. This includes
interest, dividend and other financial income of EUR 1.5 (2.4) million,
as well as interest and other financial expenses of EUR 0.9 (3.3) million.
Of these, EUR 0.3 (0.2) million came from interest expenses, EUR 0.6 (0.4)
million from exchange rate losses and EUR 0.0 (2.7) million from securities
valuation losses and other financial expenses.
Profit before taxes grew by 37% to EUR 13.0 (9.5) million. Profit for
the period after taxes and minority interest was EUR 6.9 (6.2) million.
Earnings per share were EUR 0.18 (0.16). The Group's order books on amounted
to EUR 82.9 (65.1) million. The order book grew thanks to a good order
intake by Glaston
Technologies in the third quarter.
Glaston Technologies - Net Sales, Operating Profit and Order Book
Glaston Technologies net sales in January-September grew with acquisitions
by 64% over the previous year to EUR 134.8 (82.4) million. Vacation periods
at Tamglass and Z. Bavelloni reduced third quarter delivery volumes in
comparison to other quarters. The effect from the U.S. dollar and other
main currencies is seen in that net sales for the business area would
have been 10% higher with exchange rates from 2002.
Despite currency exchange rate effects, operating profit before amortisation
of goodwill grew by 37% to EUR 12.1 (8.8) million. Its share of the net
sales of the Glaston Technologies was 9.0% (10.7%).
The net sales of the Tamglass Group and Uniglass Engineering increased
slightly over the corresponding period last year. Their profitability
clearly improved during the period under review thanks to new products
and improved logistical efficiency among other things.
Bavelloni Group net sales and profitability fell from last year as a result
of the US dollar and other important invoicing currencies falling against
the euro, as well as demand focusing on smaller basic machinery. The order
quantities for Bavelloni have turned to growth since July.
Glaston Technologies' order book was good at EUR 60.3 (42.1) million.
The order book grew from EUR 54.0 million in June due to success at the
Vitrum exhibition.
The sales organisations of Tamglass and Z. Bavelloni have worked in close
co-operation. This has brought both companies new customers from the among
the other's clientele.
The capacity utilisation rate of Glaston Technologies' machine plants
was at a good level during the period under review. Tamglass and Z. Bavelloni
have achieved cost savings from logistical co-operation already in the
third quarter.
The machine plants are well prepared to quickly increase their production
capacity as market demand starts to grow.
Saint-Gobain
Vitrage Acquires a New Float Line in China
The
Flat Glass Division of Saint-Gobain (Saint-Gobain Vitrage) and its Korean
partner Hanglas proceeded on October 8th, 2003 to the purchase of a float
line located in Qingdao (Shandong province) in North Eastern China.This
operation was carried out through a joint venture company held in majority
by Saint-Gobain Vitrage and Hanglas, and Luoyang the current owner of
the float line holding 10%.
Qingdao's geographic position is very favourable for the supply of the
North-Eastern Chinese market -including Beijing- as well as for exports.Qingdao
is China's third largest port and numerous daily connections with Korea
and Japan ensure a service of good quality towards these countries.
This operation is an important landmark in the partnership between Saint-Gobain
Vitrage and Hanglas associated for their mutual development in North-East
Asia.
Saint-Gobain
Group Suffers from Exchange Rates
Consolidated
sales for the Saint-Gobain Group came to €22,236 million for the
first nine months of 2003, representing a contraction of 3.0% on an actual
structure basis and 4.6% on a comparable structure basis. As for the first
six months of the year, the decline in sales is entirely due to currency
effects – which had a 6.6% negative impact during the period –
and especially the sharp falls in the value of the US dollar, pound sterling
and Brazilian real against the euro. At constant exchange rates (based
on average rates for the first nine months of 2002), sales for the first
nine months of 2003 were up 3.8% on an actual structure basis and 2.2%
on a comparable structure basis.
The like-for-like increase was due to a 1.1% rise both in prices and sales
volumes.
Sales trends by business sector, division and geographic area are as follows:
Sales for the First Nine Months of 2003:
• up 3.8% at constant exchange rates
• up 2.2% like-for-like
The overall like-for-like trends seen in first-half 2003 continued into
the third quarter of the year, with the divisions serving the new construction,
renovation and consumer markets enjoying vigorous demand both in the United
States and Europe (excluding Germany). High Performance Materials sales
held firm during the period and the Pipe Division continued along the
growth track, spurred by major distant export contracts. Overall, prices
held up well in all divisions, with the sole exception of Insulation and
Reinforcements.
The Glass Sector reported moderate like-for-like growth for the
period, as the robust performance turned in by Flat Glass and Containers
was partly offset by a contraction in volumes and prices for the Reinforcements
Division. Momentum was strong in volume terms in most of the Insulation
Division’s markets for the third quarter, although sales prices were
eroded during the period.
In line with its first-half performance, sales for the High-Performance
Materials sector held firm during the third quarter compared with
the same period in 2002. The Sector is still not seeing any significant
sign of a recovery in corporate capital spending, either in the United
States or in Europe.
For the second quarter in a row the Housing Products Sector recorded
the Group’s highest level of organic growth thanks to a 15.7% sales
surge from the Pipe Division, driven by major distant export contracts.
The Building Materials Division saw a significant upturn in sales volumes
in the United States and Europe during the third quarter.
Meanwhile, fuelled by both organic growth and acquisitions, the Building
Materials Distribution Division continued to expand despite a downturn
in the German and Dutch markets.
By geographic area, sales remained strong in France during third-quarter
2003 and held relatively firm in other European countries. In the United
States, volumes increased for the Insulation and Building Materials Divisions
thanks to the buoyant construction market. For the other Divisions, the
first-half trends observed in the United States continued into the third
quarter. Demand remained high in emerging countries with double digit
sales growth once again reported during the quarter.
Asbestos claims in the United States: some 6,000 new claims were received
by Certain Teed during third-quarter 2003, including less than 1,000 in
the State of Mississippi. The surge in litigation in Mississippi observed
during the latter part of 2002 and the first half of 2003 has clearly
come to an end, and the monthly number of new claims received in the other
States during the quarter was less than half the number recorded in the
second quarter of the year.
At the same time, 15,000 claims were settled, representing practically
the same number as in the second quarter of the year.
These developments resulted in a decrease in the number of outstanding
claims compared with end-June 2003, to 114,000 at September 30, 2003.
The average individual cost of settlement has remained flat since the
beginning of the year, at about US$ 2,100.
The fall-off in new claims filed during the 3rd quarter provides a clear
indication that the favourable trend observed in the first half of the
year is set to continue. It is encouraging to note that no exceptional
surge in claims has occurred to date in the States that are considering
legislation or rules that would make them less plaintiff-friendly venues
for asbestos cases (Texas, Ohio and Michigan).
In addition, on July 11th, 2003, the US Senate Judiciary Committee approved
a bill sponsored by Senator Hatch to set up a federal trust fund to compensate
asbestos victims, providing a possible national solution, at some point
in the future, for all current and future asbestos claims.
Outlook: in light of the sharp rise in the euro against most other
currencies observed since the beginning of the year, operating income
and net income for the full year will be down on 2002. At constant exchange
rates (i.e. based on average 2002 exchange rates), the Group is still
aiming for a modest increase in operating income.
Tessenderlo
Group: Results as at the End of September 2003
Tessenderlo
Group's (Eurocell's parent company) sales figures realised as at the end
of September 2003 show a slight rise of 1.1% compared with the same period
for the previous year, totalling 1,458.8 million EUR against 1,443.4 million
EUR in 2002. Based on a comparable consolidation perimeter, the sales
figures would have fallen by 4%, due largely to the impact of the dollar.
The group’s net results declined from 47.9 million EUR to 27.4 million
EUR, a fall of 42.8 %.
The drop in feed phosphate prices, which also continued this summer, low
PVC prices and the level of the dollar are the main reasons for this downturn
in results for Tessenderlo Group.
The only areas not affected by the gloomy economic climate are the gelatin
operations and plastics converting.
Cash flow fell, but to a lesser degree, by 15.4 % from 132.7 million EUR
to 112.2 million EUR.
Prices for PVC started to recover in August, and this trend persisted
in September. The volumes recorded during the three summer months were
unusually good in relation to those for the corresponding period. Sales
figures as at the end of September increased slightly but rises in the
cost of raw materials partially eroded the improvement in margins. The
result remains negative as at the end of September, and is substantially
below the figure for the same period in 2002.
The sales figures for plastics converting are comparable with those
of the previous year. Results have improved markedly: this can be attributed,
amongst others, to the PVC prices, as well as to the fact that the company's
markets, both tubes and profiles, fared better during the summer.
In the natural organic products division, gelatin showed
a marked improvement in results. This can be explained by an expansion
in volumes, and also by new acquisitions of American companies, which
are making a major contribution to results.
The collection and treatment of animal waste were negatively affected
by the surge in raw materials resulting from the extremely hot summer.
Results in this area show a marked decline.
Prospects for 2003
'Although the difficulties we are encountering in the area of feed phosphates
are persisting, improvements in PVC margins, which appear to have been
confirmed, and, to a lesser extent, soda margins, should prevent a further
decline in our results across the year as a whole. They should enable
us to approach 2004 in a more favourable set of circumstances.' says the
company.
Hunter
Douglas: Nine Months Sales 1.9% Lower, Profit 4.0% Lower
Hunter
Douglas, world market leader in window coverings (Luxaflex®) and a
major manufacturer of architectural products (Luxalon®) reports results
for the first nine months of 2003. Hunter Douglas' sales in the first
nine months of 2003 were EUR 1,248.4m, 1.9% lower than EUR 1,273.2 million
in the first nine months of 2002. The sales decrease reflects 0.7% volume
decrease, 10.4% negative currency impact and 9.2% contribution from acquisitions.
Sales were higher in Europe, level in Australia and lower in North America,
Latin America and Asia.
Europe accounted for 40% of sales, North America 48%, Latin America 3%,
Asia 6% and Australia 3%. Window coverings were 89% and architectural
and other products 11% of total sales.
Net profit was EUR 84.0 million, 4.0% lower than EUR 87.5 million reported
in the first nine months last year. Net profit per average outstanding
common share was EUR 1.99, compared with EUR 2.08 for the first nine months
of 2002, adjusted for stock dividends.
The weakening of the US dollar negatively affected the translation of
results by EUR 14.6 million. Excluding the currency impact, profits would
have increased by 12.7%.
Sales in Europe in the first nine months increased by 14.3% to EUR 495
million. The sales increase reflects 4.2% volume decrease, 1.6% negative
currency impact and 20.1% contribution from acquisitions. Sales in the
third quarter increased by 19.1% to EUR 168 million. The sales increase
reflects 1.5% volume decrease, 2.1% negative currency impact and 22.7%
contribution from acquisitions.
Hunter Douglas Europe's sales were higher in the UK, Ireland, France and
Spain, level in Belgium and Norway and lower in other countries. Window
covering retail sales slowed while project sales are recovering.
Sales of pleated blinds and Duette shades continued to grow, while vertical
and roller blinds, incorporating the new EOS® hardware systems, further
gained market share, notably in Germany and France.
In the third quarter Hunter Douglas acquired Filtersun and Goeland strengthening
its position and product offering in France. Nedal, the Dutch-based aluminium
extrusion operation, had slightly lower sales and higher profits.
The Vlissingen Smelter participation negatively affected results. Due
to a power outage in October 2002, which resulted in technical problems,
the smelter only operated at 76% of capacity.
The Company has its head office in Rotterdam, The Netherlands and a Management
Office in Lucerne, Switzerland. Hunter Douglas is comprised of 156 companies;
64 manufacturing and 92 assembly operations, and marketing organisations
in more than 100 countries.
The common shares of Hunter Douglas N.V. are traded on the Dutch and German
Stock exchanges.
CertainTeed
Roofing Completes Multi-Million Dollar Expansion Project at Minnesota
Plant
CertainTeed
Corporation has completed a major multi-million dollar expansion project
at its Shakopee, Minnesota, roofing plant, which included construction
of a production line to make the company’s Landmark™ Series
of laminated shingles.
‘This is the most successful start-up I have ever been involved with,’
says Plant Manager Ed Foster, during a ribbon cutting and line dedication
ceremony on 5th November at the facility. ‘Roofing employees throughout
the country were brought in to assist with the start-up, and it was a
total team effort. CertainTeed’s Roofing Products Group is fortunate
to have so many talented people to assist us with this massive undertaking.’
Participating
in the ceremony were CertainTeed customers, employees, suppliers, members
of the Shakopee City County, Scott County Administrators and Shakopee
Mayor William Mars. ‘This expansion has reaffirmed CertainTeed’s
commitment to the city of Shakopee and the State of Minnesota,’ said
Mayor Mars. ‘The company’s dedication to providing quality,
well paying jobs has been a continual boost to our economy, and for that,
we are grateful.’
The expansion was triggered by the rapidly growing demand among consumers
in the North Central United States for laminated shingles, otherwise known
as ‘architectural’ or ‘designer’ shingles. They consist
of two parts, a base and dragon’s tooth overlay, that when combined
with colour blends and shadow effects, create the appearance of natural
wood shakes. ‘Laminated shingles are the fastest growing product
segment in the roofing industry,’ says Foster.
The expansion took about two years to complete and is one of two major
projects CertainTeed Roofing is undertaking to expand laminated shingle
production. The other is currently underway at the company’s plant
in Shreveport, Louisiana. ‘Both of these projects are massive undertakings
and I couldn’t be more pleased with our progress to date,’ says
John Donaldson, President of CertainTeed’s Roofing Products Group.
‘Shakopee’s start-up was on-time and executed flawlessly and
will go a long way to providing our customers with the products and service
they expect.’
CertainTeed Corporation is a North American manufacturer of building materials
including roofing, siding, insulation, windows and patio doors, fence,
decking, railing, foundations and pipe. The company is headquartered in
Valley Forge, Pennsylvania, and has approximately 7,000 employees and
more than 40 manufacturing facilities throughout the United States. The
company had sales of approximately $2.5 billion in 2002.
Web: http://www.certainteed.com
Guardian
Industries Introduces Ultrawhite™ Glass
‘Are you in the market for a crisp, clear glass without the long
lead times? Do your customers want colour neutrality and improved clarity
on demand? Guardian Industries, a global leader in the glass, automotive
and building products industries, may have the solution: UltraWhite™
low-iron glass'. says the company.
Responding to market demand for increased clarity and colour neutrality
in glass, Guardian scientists reduced the iron content and added key ingredients
to its clear float glass to create the company’s newest product offering.
UltraWhite is a clear, high transmission glass product that can be used
virtually anywhere regular float glass is used.
UltraWhite’s colourless appearance makes it a suitable choice for
a variety of commercial and residential architectural applications, both
interior and exterior, as well as original equipment manufacturer (OEM)
applications. Examples include:
* Appliances
* Picture frames
* Atriums
* Skylights
* Curtain walls
* Spandrel glass
* Display cases
* Storefronts
* Doors and entranceways
'What really sets Guardian’s new product apart from others is the
availability. Guardian’s unique manufacturing process, which includes
frequent product runs, allows the company to produce and deliver quickly.'
says Tony Hobart, Guardian’s group vice president of North American
sales and marketing.
'With the introduction of UltraWhite, Guardian is meeting our customer’s
need for improved glass clarity,' says Tony 'But, we’ve gone one
step further. Guardian will make UltraWhite readily available, which has
not been the case in the marketplace until now.'
UltraWhite is available in 2mm-12mm thicknesses.
Web: htttp://www.guardian.com
Alcoa
Foundation Grants Help Southern California Disaster Relief Organisations
With
thousands of displaced California families still dependent upon volunteer
efforts for daily living needs, Alcoa Foundation has announced grants
to disaster relief organisations from the San Bernardino Mountains to
San Diego. A total of $60,000 has been awarded to the following organisations:
* $20,000 to the Inland Empire Chapter, American Red Cross
* $20,000 to the Ventura County Chapter, American Red Cross
* $20,000 to the Sierra Del Mar Division, Salvation Army
These grants are part of Alcoa and Alcoa Foundation's longstanding commitment
to providing immediate support to victims of natural disasters in Alcoa
communities worldwide.
To date, the California wildfires have destroyed more than 720,000 acres
of land and 3,100 structures. More than 6,400 evacuees have been cared
for in Red Cross shelters.
Alcoa in California
Ventura, Orange and Los Angeles Counties (Simi Valley, Torrance, City
of Industry, Carson, Fullerton) - headquarters and operating facilities
for Alcoa Fastening Systems - a leading worldwide designer and manufacturer
of fastening systems, specialty fasteners, components, and installation
systems for aerospace and commercial product assembly.
San Diego County (San Diego) and Orange (Irvine) Counties - Alcoa's (AFL)
wireless telecommunications facilities.
Tulare County (Visalia) -operating locations for Reynolds Food Packaging
products and Kawneer architectural products.
About Alcoa Foundation
Established in 1952, Alcoa Foundation is a global resource that actively
invests in improving the quality of life in more than 29 countries around
the world where Alcoa operates. The Foundation's grants address global
and local need in Areas of Excellence that include: Conservation and Sustainability,
Global Education and Workplace Skills, Business and Community Partnerships
and Safe and Healthy Children and Families. Alcoa Foundation also manages
ACTION and Bravo!, two Alcoa employee engagement programs.
Web: http://www.alcoa.com
Alcoa
Announces Agreement to Sell Specialty Chemicals Business
Alcoa
Inc. announced on 6th November that Alcoa World Alumina & Chemicals
(AWAC), a global alliance between Alumina Limited (40%) and Alcoa (60%),
has agreed to sell Alcoa Specialty Chemicals to Rhone Capital LLC. This
sale is part of the divestiture program announced by Alcoa in January.
Alcoa Specialty Chemicals has annual revenues of approximately $360 million,
and employs 811 people. ASC's global platform consists of eleven operating
facilities in six countries around the world. In addition to facilities
in North America, Europe, Japan, and an equity stake in Australia, ASC
operates production and processing centres in the growth markets of China
and India.
ASC's products are sold into a wide range of well established end markets
including the steel production, cement production, petrochemical, plastics,
automotive, non-ferrous metal production, ceramics, carpet manufacturing
and electronics industries.
Terms of the sale are not being disclosed at this time. Alcoa will continue
to supply alumina feedstock to Rhone. The parties expect to close the
transaction within two months. UBS Investment Bank is acting as exclusive
financial advisor to Alcoa in connection with this transaction.
Web: http://www.alcoa.com
Yes
it Will Make the Coffee!
‘With
nearly fifty Flowlines now sold in three years this extremely flexible
cutting and prepping centre is well known in the market place.’ says
Stuga.
The Flowline was designed by British engineers for British window systems
and this together with the three hundred and sixty degree tooling system
means that it can carry out all types of cuts and preps required for our
uPVC window and door systems.
When Steve Haines from Stuga’s Sales & Marketing Department mentioned
this to the engineers setting up the machine at Glassex 2003 they quickly
pointed out that it could and proceeded to do exactly that.
The Flowline comes equipped with a double thirteen-amp socket conveniently
placed for use by installation and maintenance engineers for various purposes,
including making the tea or coffee.
The Stuga team had just completed making a brew of coffee when Dave (Brocko)
Broxton of Glass Age magazine passed by with his camera in his hand. Brocko
not only enjoyed the coffee but also got some amusing snap shots of the
event.
Tel: 0800 169 5444
Email: mailto:sales@stuga.co.uk
Web: http://www.stuga.co.uk