Plastmo
Ltd announces with regret, that Commercial Director Eric Davis has resigned
from his Board position and as Commercial Director of the Abbott Group
subsidiary, to pursue new interests.
Group Managing Director Henrik Jensen says 'As Sales Manager and, later,
Sales Director, Eric made a signal contribution to the successful development
of Plastmo Profiles Ltd; its product ranges and its customer network.
We are sorry he is leaving us after so many years and wish him every success
for his future.'
Shepley
Acquires Interframe
Shepley
Window Systems (Holdings) Ltd has acquired Interframe Ltd, a large trade
fabricator based in Paignton, Devon, on 22nd December 2003. Shepley is
already one of the largest trade fabricators in the UK and the recent
acquisition moves the group into the industry’s top three.
Between them the two companies have a combined turnover of £40 million
and a workforce of over 500 employees. The companies produce around 6,500
frames a week, with a capacity of over 8,000. The two companies currently
supply around 75 conservatory roofs a week, with resources in place to
easily achieve 120.
Shepley, founded in 1986, supplies directly to a national customer base
of major retail installers and trade outlets. From its headquarters in
Paignton, Interframe targets a complementary sector of the market by servicing
regional customers who buy smaller volumes.
Commenting on the acquisition, Gary Torr, managing director of Shepley,
said, ‘We see this as strengthening the market positions of both
companies at a time when size and financial strength are becoming increasingly
important. Interframe offers a good fit with Shepley, with its strong
management team and focus on providing highest levels of service and product
quality.
‘Our focus will continue to be on quality not quantity and, although
we plan to run both Shepley and Interframe as autonomous companies with
separate strategies, by sharing specialist skills and technical expertise
across the group I can see exciting times ahead in manufacturing, R&D,
IT and logistics. In the future, we expect to offer customers the widest
range of PVCu windows and doors in the UK.’
Web: http://www.shepley.com
Prosperous
Financial Period for Leading Window and Door Manufacturers Reveals New
Business Ratio Report
'The
average leading company operating in the window and door manufacturing
industry in Great Britain has experienced a prosperous financial period
over the last three full accounting years - 1999/2000 -2001/2002.' reveals
a recently published Business Ratio industry report. 'During the last
three years, the average leading company witnessed an average 15.9% rise
in total sales. Pre-tax profits saw an even faster rise over the three
years, rising from £716,000 in 1999/2000 to £905,000 in 2001/2002,
an overall increase of 26.4%. Good sales growth coupled with increasing
profits and lower debt levels all bode well for the future of the industry'
The Business Ratio report, entitled 'Window and Door Manufacturers' and
published by The Prospect Shop, analyses and compares the financial performance
of 150 leading companies operating in the window and door industry in
Great Britain. Covering the last full three accounting years available,
(1999/00 to 2001/2002) the report provides individual company and sub-sector*
analysis as well as performance averages for the industry as a whole.
*(replacement windows and doors 61%, general window & door manufacturers
17%, metal windows and doors16%, timber windows and doors 6%)
Lower Debt Levels
Gearing ratios for the average leading company operating in the window
and door industry have performed well under the review period. Total debt
to net worth declined in each year under review from 153.3% in 1999/2000
to 122.3% in 2000/2001 finishing on a three-year low of 97.8% in 2001/2002
- under the critical 100% where total debt exceeds net. Equity gearing,
which measures the relationship between a firm's borrowings and its shareholder's
funds, increased from 26.2% in the first year to 41.3% in the third. lncome
gearing, which shows gross interest as a percentage of profits, increased
from the first year to 12.1% before falling back in the latest year to
a three year low of 8.7%.
Pre-Tax Profit Margin Sees Overall lncrease
The average pre-tax profit margin result rose from 4.4% in 1999/2000 to
5.2% in the final year of analysis, 2001/2002. Sematic UK, a manufacturer
of metal lift doors, reported the highest pre-tax profit margin result
among all 150 companies analysed in the report.
The above table reveals the summarised financial performance of the top
ten largest companies operating in the window and door industry by sales
turnover for 2001/2002. The table is comprised of seven companies featured
in the 'Replacement Windows and Doors' sub-sector, two companies featured
in the 'General Windows and Doors' sub-sector and one company featured
in the 'Timber Window and Doors' sub-sector.
The table is led by Anglian Windows with a turnover of £263.8 million.
Anglian Windows is a major vertically-integrated manufacturer and installer
of PVCu windows, doors and related products. The full range of products
include replacement windows, replacement doors, glass and glazing, security
products and conservatories sold through over 200 show sites and service
centres throughout the UK. Please note that SBP has been excluded from
the table due to the presence of its holding company Epwin Group PLC.
Whilst the average pre-tax profit margin for the average company stood
at 5.2% in 2001/2002, profit margin results achieved among the 'Top Ten'
companies were, on the whole, rather disappointing. As can be seen, only
two of the top ten companies equalled or exceeded the industry average
pre-tax profit margin result and three companies actually reported negative
results. Anglian Windows reported the highest pre-tax profit margin among
the top ten with a healthy result of 8.9% - overall gaining twenty-third
position among the entire 150 companies analysed in the report.
About The Report
Published annually, the Business Ratio report entitled Window and Door
Manufacturers' provides a financial benchmarking tool for anyone concerned
with the industry. Clear, no-nonsense presentation of data and analysis
allows you to measure with ease your own company's financial performance
against the performance of other leading companies within the industry.
Up to 26 different types of ratios and averages are provided.
New Report Findings From: Business Ratio - Window and Doors Manufacturers
Publisher: The Prospect Shop
Edition & Price: 24th Edition / £275.00 (plus £4.95 p&p)
Telephone: 020 8481 8720
Synseal
Produces 800 Patio Doors per Week
Synseal
Extrusions Ltd is currently producing 800 patio doors per week. ‘We
are particularly pleased with the growth we are experiencing and the number
of doors we are producing,’ comments Nick Dutton, Sales and Marketing
Director of Synseal, ‘because this particular market is one that
for many systems companies is a hassle and a headache.
‘Independent research first carried out in 2000*, rated systems companies
on their performance of 13 different attributes, including quality, colour
match, appearance, ease of assembly and delivery. Synseal scored top marks
then, and our volume today proves that our fabricators are still satisfied.
We are an ambitious and innovative company, and we aim to lead in quality
of design, performance and value for money. The growth we are experiencing
now shows that our fabricators are benefiting from our approach.’
* Independent research carried out by industry specialists, Michael Rigby
Associates.
Web: http://www.synseal.com
Pilkington
Architectural Introduces Blast Resistant Pilkington Planar™
Pilkington
Architectural has extended the flexibility of its tried and tested structural
glazing system with the introduction of Blast Resistant Pilkington Planar™.
With increasing concern over terrorist activity on prominent buildings
within the major cities of the world, Blast Resistant Pilkington Planar™
offers designers a solution to the problems associated with high velocity
glass particles.
The design of the new concept enables it to survive a high energy explosion,
using a variation on the Pilkington Planar™ unique fixing mechanism,
which keeps the stresses around the countersunk boltholes supporting the
glazing to an absolute minimum.
Under blast conditions, the strength of Pilkington Planar™ is derived
from its ability to deflect and absorb the energy generated by the blast.
With more conventional glazing systems, the negative pressure from a bomb
blast can cause the panels to bulge and fall towards the source of the
blast.
Panels supported only at their corners, such as Pilkington Planar™,
are by far the most efficient at absorbing the pressure wave associated
with an explosion.
When combined with the inherent flexibility of tension systems and conventional
steel columns, the Blast Resistant Planar demonstrates intense structural
reliability. When tested, the Pilkington Planar™ system achieved
a UK EDICTS rating of Very High Level Protection Glazing, equivalent to
that of a GSA Class 1 rating in the USA.
Pilkington Architectural has developed Blast Resistant Pilkington Planar™
in response to the quandary faced by designers to create aesthetic, low
energy consumptive buildings that combine a high level of security. Previously,
the most common method of blast resistance was to place security film
over the glazing but this is reliant on a positive fix into a reinforced
glazing channel.
Blast Resistant Pilkington Planar™ allows designers to continue to
use the visually appealing Pilkington Planar™ structural bolted system,
whilst still providing the highest level of defence against bomb attack.
Third
Quarter Results provide Christmas Cheer at Safestyle
Safestyle
UK, retail supplier of PVCu windows and doors, has reported record sales
for the first nine months of 2003.
Turn over has increased to £70.1 million compared to £55.1
million for the corresponding period in 2002 and is now on course to break
the £100 million barrier by the end of the year.
The Festive spirit has not been lost on its hard working employees either,
as the company has decided to reward their efforts with two extra days
holiday per year, as Chief Executive John Ross explains:
‘The results for the first nine months have been very encouraging
and we wanted to acknowledge the hard work in the most appropriate manner.
At a time when business is particularly hectic and as part of our on-going
commitment to all our staff, by increasing the number of days holiday
from 23 to 25 not only brings our company into line with most other major
organisations but also offers our employees a rare opportunity to enjoy
more free time.’
Commenting on the increase in turnover of just over 25%, John Ross continued:
‘The company has resisted the opportunities to diversify and has
remained highly focussed on producing and selling the highest quality
yet competitively priced windows and doors. This is a strong, strategic
policy, which I believe will ensure future growth and profitability for
many years to come.’
Launched in 1992 Safestyle is one of three specialist companies, which
make up the Style Group Plc. The Group is a national organisation with
38 offices, including a head office in Bradford, West Yorkshire, covering
manufacture, new-build, commercial development, trade supply and retail
markets.
Style Group Plc recently 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.
Roof-Maker
Expands Globally
Former
K2 fabricator Roof-Maker Ltd in Leicester has announced the successful
change over to the new Global roof system.
'Our customers are delighted with the new product and with the help of
Synseal and their engineers it has enabled us to increase production as
now 75% of all roofs can be flat-packed' said Rachel Owen, Sales Director.
'Since July we have been selling Global to give our customers the option
and we found that Global outsold K2 more and more. We are surprised just
how many new customers the Global product attracted as well as our existing
customer base. An important feature which our customers identified with
is the foiled woodgrain aluminium top caps which eliminate any warping
or twisting on glazing bar top caps.
'This functional design engineering is typical of the vast experience
which Synseal have in the industry and is reflected in many of the global
products. A refreshing change with Synseal as the extrusions supplier
is that we know that they are making 500 plus roofs each week in house
and not just sending stock lengths out of the door to fabricators.' remarked
Rachel.
' We have been working closely with Synseal engineers over the last few
months installing custom made machinery and software related tooling to
facilitate rapid manufacture of roof kits.'
The company says that with only two extra members of staff on the production
team, they now have capacity to make 40 plus roofs per week without the
need for massive premises.
Prince
Andrew gave CGI International the Big 5 at Dubai Exhibition
The
Duke of York opened the world’s biggest trade show, the Big 5 Exhibition
held in Dubai in the United Arab Emirates, where 68 UK firms exhibited.
The
Prince spent two or three hours talking to the British exhibitors and
greeted specialist Fire Glass manufacturer CGI International’s Sales
Managers, John Brown (pictured) and Richard Banyard, with a warm handshake.
Prince Andrew, Britain’s roving trade ambassador visited the CGI
stand and expressed a very keen interested in the companies products and
in CGI’s efforts to obtain new export opportunities in and around
the Gulf region.
During the show there was considerable interest shown in CGI’s fire
resistant glass products from representatives of all countries around
the Gulf area, from architects, glass merchants and specifiers.
Construction is booming in the Gulf and the availability of a stockable
fire resistant glass created quite a stir among the visitors.
CGI has a world-wide market for its fire glass products and is best known
for its Pyroguard unwired stock-able fire glass, which is a market leader
in many of the 20 different market places, into which CGI sells. Currently
over 70 per cent of the company’s production is exported.
CGI provides a complete range of fire products to fulfil a wide variety
of performances and appearances enabling specifiers to obtain all their
requirements for fire and speciality glasses from a single source.
Tel: 020 7960 6060
Email: mailto:info@cgii.co.uk
Web: http://www.cgii.co.uk
Doors
and Windows Hall at Interbuild Sold Out
Further
evidence that Interbuild 2004 is the place to do business for the construction
industry has arrived with news that a major section of the show is effectively
sold out.
With months still to go before building's premier trade event opens its
doors at the NEC in Birmingham, the exhibition halls housing doors, windows,
facades, security, fire prevention and the Disability Access Zone is 97
per cent sold.
Event Director Steve Webb said: 'The response from exhibitors in this
section has been unbelievable and only a handful of very small spaces
remain.
'We suspected companies trading in these areas were crying out for a quality
professional event and this reaction surely demonstrates we were right.
'Five months out from the start we would expect to be 70 to 75 per cent
full but to have so many major players already confirmed in this section
is terrific news.'
Those committed to the 2004 event include: Epwin Group, Smart Systems,
Promac Window Machinery, Polytec, Masterframe Windows Ltd, Elumatec, Wayne
Dalton and Andersen Windows.
Jim Lawrie, Chief Executive of Black Millwork, distributor for Andersen
Windows in the UK and Ireland said: 'Interbuild will be the ideal place
to show our range because it's the event where all sections of the industry
come together and we are looking forward to discussing our products with
regular customers and prospective new ones.'
And Tim Makin, Managing Director of Polytec, added: 'We are going to Interbuild
in 2004 because we see it as a great opportunity to get access to all
key industry people in one place at the same time.
'With this in mind we also see the show as the perfect launch-pad for
a number of our new technical products.'
An extension to the Disability Discrimination Act, stipulating improved
access to services for people with disabilities by October 2004, prompted
organisers to introduce a new Disability Access Zone for the 2004 show.
'Changes to the DDA meant this zone seemed destined to be a busy area
and every inch of space we set aside has been taken,' added Steve.
'It certainly promises be the place to be for those who are still unsure
as to the knock-on effects of the new legislation.'
Interbuild runs at the NEC from April 25 to 29. Entry is £20 per
person but it is possible to avoid the queues on the day and get in for
free by reserving tickets in advance.
Just log on to http://www.interbuild.com
to preregister or call the Ticket Hotline on 0870 429 4558.
Mysterious
Glass Spheres in Crop Circles
An
article by Dr Eltjo Haselhoff gives details of white powder found inside
crop circle formations, one instance quoted being a crop circle at Zutphen
in Holland in 1996, which after microscopic investigation turn out to
be near-perfect round glass spheres.
Two
explanations have been offered for the causes of such a phenomenon:
The first, to no-one's surprise, is that the glass spheres came from outer
space, or at the very least, were certainly not created on earth. The
truth of course is that microscopic glass spheres are manufactured and
easily purchased. Such glass beads are used in many ways, in resin systems
and plastics to lower viscosity, in concrete to lower its specific mass,
in nonslip flooring systems and in abrasives and reflective coatings.
The natural explanation, and by far the more fascinating, is that eolic
airstreams can carry a fine dust. When it rains the very small solubility
of silicon dioxide in water together with its abrasive action on the dust
brings about the creation of 'glass' microspheres. (And in one way it
could be said that outer space has a hand in the process as the earth
gains almost 30m kg dust per year from space and silicon dioxide has been
identified in comets tails!)
This led him to one of two conclusions: The first is that the finding
of glass microspheres in crop circles is the action of hoaxers. However,
Dr Haselhoff's alternative explanation is that the eolic airstreams producing
silicon dioxide micropsheres could possibly 'link' to the reports of high
concentrations of meteoritic dust (magnetite) inside crop circle formations.
'Such a link could indicate the involvement of extreme heat during the
creation of crop circles and relate to the 'Balls of Light hypothesis'.
There
is a very interesting form of lightning called 'ball lightning.' Many
scientists do not believe in this form of lightning because there is no
physics theory that can satisfactorily explain it but popular supposition
says it is created when two strokes of lightning collide. Sometimes the
two strokes are so highly polarised and have such highly matching wave
patterns that instead of one ball being created, a string of balls is
created. This is the so-called 'bead lightning.' It is therefore possible
that when the lightning hits the ground, mineral grains in the soil can
be converted into tiny particles of silicon.
One theory propounded is that balls of light create crop circles. This
has arisen because stems of corn-type plants have little 'knuckles' at
several positions along their stems. These nodes act like sort of a ligament,
allowing the plants to bend. In the early 1990s, the American biophysicist
William Levengood found that plants inside crop circles often have much
longer nodes than those in the undisturbed, surrounding crop - an effect
that can be recreated by placing normal, healthy stems inside a microwave
oven. Scientists concluded therefore that the node lengthening effect
may be caused by the involvement of heat. Further, traces of heat have
been noted in crop circles.
So it seems the crop circles 'hoax or phenomenon' argument goes on. Is
it hoaxers with boards? Or are crop circles a natural phenomenon not yet
explained?
Recruitment
Drive Steps up a Gear for Ultraframe Registered Conservatory Installer
Scheme
The
2004 recruitment campaign has been launched for the Ultraframe register
of conservatory installers. Approved by the Guild of Master Craftsmen
and championed by trade, the scheme is now in full swing. Installers are
lining up to take the test and grow their business with a ready-made channel
to consumers.
The Guild is the widest and most comprehensive scheme of quality accreditation
in the industry, promoting the highest standards or workmanship and service.
An installer will be registered if they meet Guild vetting criteria, use
Ultraframe roofing systems and pass an assessment installation course.
This scheme is responsive to consumer needs and has been welcomed by trade
customers. Consumers will have readily available information and list
of approved businesses in their area, reassured by the quality of the
workmanship and Ultraframe product. Trade customers will benefit from
increased standing with consumers, recognised professional standards and
technical-support. It is a ‘badge of pride’ and sales lead generator.
‘Consumers want help to find a good conservatory installer and know
that their work is of the highest quality, for ease and peace of mind.
Installers will enjoy numerous business opportunities to maximise sales
leads and the benefits of Ultraframe’s range of products. As leading
manufacturer, Ultraframe seeks to protect and promote the highest possible
industry standards,’ said Nick Gale, Managing Director of Ultraframe
UK.
Planet
Opens Latest Franchises in Southampton and Eastbourne
Planet
PVC Group plc, the UK installer of conservatories, has recently opened
another two new megastores. The first, in Southampton was opened by Matt
le Tissier - the ex-Southampton and England footballer (pictured). The
second new store opened in Eastbourne, on the busy Redward Business Park
– Eastbourne’s main commercial area. The new Southampton showroom
occupies 8,000 sq ft, at Romsey, on the Abbey Park commercial estate.
In Southampton, local businessmen Nigel Gough and Ian Pickernell worked
round the clock to get their new outlet ready with seven complete conservatories
on display.
The Eastbourne megastore features an impressive display of eight fully
built conservatories along with a window and door gallery and will be
run by Dave Trewin and Sue Crawley who have built up and run a successful
double glazing business over the past decade.
Nationally, Planet currently install 135 per conservatories per week and
are aiming to have 200 installations per week by next year.
Dean St John said: ‘We’re delighted to have two successful and experienced partnerships running our new megastores and we have already had lots of positive feedback from customers. Both Eastbourne and Southampton have good local business links and potential and we expect both stores to be very successful.’
National
Network 'First' for Glass Sector Customers, as Hi-Tec Spray Acquires Bollom
Finishing Equipment
A
new UK force in surface coating technology for the glass and secondary
windows industry has been created following the acquisition of Bollom
Finishing Equipment by Hi-Tec Spray Ltd.
The acquisition means that Hi-Tec Spray becomes one of the top companies
in the country offering spraying and finishing solutions to the glass,
secondary windows and other industrial sectors, and the only one with
a national network of depots.
The newly-expanded company, which will have a turnover of more than £5m,
services customers in the glass and secondary window sector including
Pilkington, Nicholls & Clarke and Eurobond.
Hi-Tec Spray also acts as distributor for leading international manufacturers
of spraying, finishing and pumping equipment, including Graco, Wagner,
ITW DeVilbiss, ITW Binks, Kremlin, Sames, Iwata and Sagola.
Complementing this with a wide range of consumable products is a 3M and
Applied Chemicals/Gramos distributorship, plus a comprehensive choice
of shotblasting equipment.
Garry Dowling, 42, and Steve Cooper, 43, will continue to run the company
from Maidstone, Kent, which they founded in 1987.
They now head a team of 40 service engineers, depot staff and sales executives,
based at branches in Manchester, Coventry, Bristol, Southampton, Stowmarket
and Maidstone, plus a new depot in southeast London.
Comments Garry Dowling 'We're delighted to have acquired Bollom Finishing
Equipment. Our skill sets, client databases and equipment portfolios are
an ideal fit.
'Most importantly, we can now service our customers from regional depots
throughout the country, a network which is unrivalled by any of our competitors.
That means a closer relationship with our customers where we can offer
local spares, repairs, advice and expertise.
Everything
Bar the Kitchen Sink
RoofWright
has developed new ideas for kitchen/dining room extensions with its 21st
century 3D conservatory software.
On a laptop in front of the customer, using either a standard template
or the freehand editor, RoofWright makes it simple to create the required
extension shape and size. Especially with the kitchen diner extension
in mind, RoofWright has introduced new roof cladding choices of tiles,
slates and wooden shingles.
A new Window and Door editor allows the user to show the customer on screen
exactly how windows and doors will look from any angle, in any position,
open or closed. Frames can be split horizontally and vertically with multiple
apertures and, of course, selections made of glazing design and colours.
Evaluation copy from http://www.roofwright.com
or 0161 426 1120
Ace
Window Systems Come Up Trumps
Ace
Window Systems Ltd, a Premier Profiles fabricator and installer based
in Port Talbot, South Wales started work this month on its largest new
build housing contract yet with Oakview Homes Ltd.
The
extensive door and window programme on this brand new development in the
Swansea Valley, will involve Ace Window Systems installing Premier Profiles’
Sekura 70 system, in Sherwood Oak, on 16 detached and semi-detached properties.
Premier Profiles, extruder of PVCu windows, doors and cellular foam profile,
has been supplying Ace Window Systems Ltd with its Sekura system since
1996 and has supported the company’s growth into one of South Wales’
largest domestic and commercial fabricators and installers.
This contract highlights the continued success of Premier Profiles specification
in the commercial new build sector where its attractive, low maintenance,
part L compliant products are increasingly popular with large house build
companies such as Oakview Homes.
Managing director of Ace Window Systems, Andrew Edwards said: ‘We
have developed a strong relationship with Premier Profiles and there’s
no doubt that its renowned industry reputation has helped our company
to double its size in the last few years and win some significant contracts.
The Oakview Homes development is a high profile project here in South
Wales and an important showcase for our commercial expertise.’
Eugene O’Kelly, Site Manager of Oakview Homes said: ‘We are
delighted to be working closely with Ace Window Systems on this new development
and its light oak effect PVCu windows are adding a distinctive look to
the new properties.’
On
Site Restoration and Repair of Damaged Glass in Construction
Chicago
Glass has extensive experience of restoration and repair of damaged glass
on-site for many of the major construction companies and glass installers
in the UK.
Typical damage is caused by hard objects, such as plant or toolboxes being
left on glass prior to installation or damage by tools, ladders or scaffolding
during construction. Regularly problems occur when brick dust, labels
or paint are being removed from glass or mirrored surfaces.
Glass that has been damaged by weld splatter, i.e. when metal has been
burnt into glass as a result of grinding, welding or cutting metal in
close proximity to glass can be treated. The metal is picked out, and
the damaged area is chemically cleaned before resin-filling the craters
and polishing the repairs to match the glass.
Chicago Glass rebuilds glass that has been shelled, chipped or cracked
on-site by injecting UV curable resins to restore clarity and structural
strength. Glass is commonly repaired in situations such as lifts, entrance
halls, glass fixed in curtain walling, balustrades etc.
Estimates of costs can be given over the telephone for work needed and
staff are usually available at short notice to rectify urgent problems.
Most damages to glass can be rectified by Chicago Glass technicians, who
are trained to work on all types of glass construction, on-site. Scratches
can be reduced to meet Glass and Glazing federation Standards of Visual
Quality of glass or be completely removed with a guaranteed distortion-free
finish.
Tel: 01474 543616
Web: http://www.scratchremovers.co.uk
Alcoa
Fourth Quarter Income from Continuing Operations up $486 Million from
Year-Ago Quarter; Full-Year Up 117% Over 2002
Highlights:
* $340m of income from continuing operations for the fourth quarter up
from a loss of $146m in the same quarter 2002
* $1.034bn, or $1.20 per diluted share, in income from continuing operations
for the full year - up 117% over 2002
* $1.2bn of debt reduction in 2003 with the company's debt-to-capital
ratio declining from 43.1 to 35.1%
* The company surpasses its goal of $1bn in annual cost savings
* Every segment showed improved profitability over 2002
Alcoa reported on 8th January fourth quarter income from continuing operations
of $340 million, or $0.39 per diluted share, up 21 percent from the previous
quarter's $282 million, $0.33 per share. The results were a substantial
improvement over the loss from continuing operations of $146 million,
$0.17 per share, in the fourth quarter of last year.
Net income in the fourth quarter was $291 million, up 4 percent from $280
million in the third quarter of 2003, and significantly improved from
a loss of $223 million in the fourth quarter of 2002.
The difference between net income and income from continuing operations
in the fourth quarter of 2003 is due primarily to an adjustment to the
anticipated proceeds from the sale of discontinued operations. Both measures
are recognised by Generally Accepted Accounting Principles.
For the full year, income from continuing operations was $1.034 billion,
$1.20 per diluted share, the highest in three years. Net income was $938
million, $1.08 per diluted share, a 123 percent improvement over 2002.
'Over the year, we improved productivity, managed capital, and worked
every lever in our control to offset cost increases for raw materials,
energy, benefits, and the impact of a weakened dollar,' said Alain Belda,
Chairman and CEO of Alcoa. 'The result was consistently improving profitability,
a considerably stronger balance sheet, and a company that is well positioned
for future growth as world markets continue to strengthen. That is what
we promised last year, and our team delivered.'
Market Overview
For the full year, revenues increased 6 percent to $21.5 billion after
integration of newly acquired packaging and fastener businesses. 'As global
demand for alumina and aluminium continues to increase, we expect to realise
the benefits of the improved market,' said Belda.
In the fourth quarter of 2003, sales were $5.5 billion, increasing 9 percent
over 2002 and 4 percent over the third quarter. Sequentially, strong alumina
shipments and higher aluminium prices overcame slightly lower volumes
in markets that typically experience weakness in the fourth quarter: closures,
can sheet, and building and construction.
Solid Improvement of the Balance Sheet
'Aggressive capital controls, management of working capital, and the initial
benefits of a well-designed divestiture plan helped us retire more than
$1.2 billion in debt over the year,' said Belda. The company cut its debt-to-capital
ratio in 2003 from 43.1 to 35.1 percent, an improvement of 370 basis points
from the third quarter. In 2003, capital expenditures were $867 million,
32 percent below last year's level of $1.27 billion.
The balance sheet will improve further in the first half of 2004 as the
divestiture programme outlined last January is completed. To date, the
company has shed its Latin American PET business and an equity interest
in Latasa, a South American can producer. In the first quarter, the company
expects to close on the sale of its specialty chemicals, automotive fasteners,
and packaging equipment businesses. The total proceeds of the divestiture
programme should be in line with the company's earlier estimates -- $750
million to $1 billion.
In addition, a strong return of 19.75 percent on the company's pension
investments essentially offset the impact of a 50 basis point decline
in discount rates. As a result, the company did not record a material
charge for minimum pension liability to its balance sheet in 2003.
Cost Savings and Management Actions
In the fourth quarter, the company surpassed its three-year $1 billion
cost savings goal, marking the second time in six years that the company
has achieved more than $1 billion in sustainable savings. That intense
focus on profitability was critical as the company faced considerably
higher costs for energy, raw materials, and benefits, as well as the impact
of a weaker dollar on manufacturing operations outside the U.S. this year.
In the fourth quarter alone, those costs increased by more than $150 million
before tax over the last quarter of 2002. Management actions that offset
the higher costs included:
• Drove $12 million of new cost savings in the fourth quarter;
• Reduced the company's fourth-quarter effective tax rate to
21 percent by recognising benefits from foreign net operating
losses, offsetting higher taxes from the Latasa sale;
• Recognising $105 million in pre-tax gains from insurance
settlements of a series of historical environmental matters in
the U.S.; and
• Achieved higher gross margins of 20.3 percent in 2003, up from
19.8 in 2002.
Together with higher metal prices, these management actions more than
compensated for higher costs in the quarter.
The company will announce a new set of long-term cost challenges at the
4th quarter analyst workshop on January 22nd, 2004.
Positioning the Company for Future Growth
Despite tight capital restraint, Alcoa continued to make long-term investments
to improve its world-class position in alumina refining and smelting,
and expand other high-growth businesses. Through Alcoa World Alumina and
Chemicals (AWAC), Alcoa's global alliance with Alumina Ltd., the company
moved forward this year on its plan to add 1.1 million metric tons of
annual capacity at its alumina refineries in Jamaica, Suriname, and Western
Australia.
Final approvals were granted for the company's new aluminium smelter in
Iceland, and the company signed an MOU for a stake in the low-cost Alba
facility in Bahrain. The company scaled back higher-cost production at
its smelters in Massena and Intalco, where higher energy costs had made
the plants less competitive.
Providing Solutions to Customers
Through disciplined deployment of the Alcoa Business System, Alcoa intensified
its focus on its customers in 2003. The company's Market Sector Lead Teams
developed a more coordinated approach to customers in all of Alcoa's major
markets. As a result, Alcoa was awarded significant new aerospace contracts,
working with Airbus toward launch of its landmark new A380; and continued
its expansion of new products such as Dura-Bright® wheels for the
commercial transportation market, new customized siding for the home construction
market, and Reynolds Wrap® Release® non-stick foil for the consumer.
In the automotive market, Alcoa collaborated with GM on its Cadillac 16
concept car, with Ford on its new F-150 truck and Jaguar XJ, with Toyota
on a lightweight engine cradle for the Lexus RX330, with Ferrari on the
612 Scaglietti, and with Audi on its second-generation A8 sedan. The company
also announced plans to create a single automotive customer center in
Detroit.
In the fourth quarter, Alcoa's AFL Automotive group announced that it
is working with Pacific Insights on a new contract to design and supply
a hi-tech component for new PACCAR and Peterbilt trucks. Alcoa Closure
Systems International (CSI) business developed a new closure for the dairy
market that is easy to open and offers improved tamper-proof capability.
Web: http://www.alcoa.com
Saint-Gobain
Sales up 3.8% at Constant Exchange Rates, up 2.2% Like-for-Like
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:
(i)
including inter-division eliminations
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 rmarkets 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 Insuiation
Division's markets for the third quarter, although sales prices were eroded
during the period.
In line with its first-half perfomance, 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, fueled 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 (ie. based on average 2002 exchange rates), the Group is still aiming
for a modest increase in operating income.
IMI
Trading Update and Management Changes
In
accordance with its normal practice, IMI plc, Premier Profiles parent
company, recently issued a trading update in advance of its preliminary
results announcement for the twelve months ending 31st December 2003,
due to be published on 8th March 2004.
Overall, on a like for like basis, sales for the second half of the year
are expected to be around 3% higher than last year. With the first half
similar to last year on the same basis, this would result in the year
being 2% ahead.
'Whilst not uniform across all our businesses, there are signs of a modest
improvement in underlying end markets. Fluid Power is beginning to build
momentum in order intake in the US. The positive trend reported in September
in Merchandising Systems has continued, and in Indoor Climate, the decline
in sales in the German market is showing some signs of abating. The growth
arising from the investment made in Severe Service has continued. In Beverage
Dispense the food-service sector remains difficult and, despite another
healthy contribution from new products, second half sales will be lower
than last year. Polypipe’s core pipes business remains steady.
'Operating profit will be ahead of last year and with lower interest costs
it is expected that profit, before rationalisation costs, goodwill amortisation,
exceptional items and tax, will be in the range £136m-£140m
compared to £131.5m in 2002, which included a £5m pension
credit.
'Rationalisation costs for the year should be less than £7m (2002:
£32m).
'Cash generation remains healthy and, after corporate activity and exchange
rate changes, year-end borrowings will be similar to last year.
'Movements in average exchange rates in 2003 will not have a significant
impact on the overall reported results. If the current spot rates of exchange
for the US dollar and the Euro had applied throughout 2003, the translation
effect would be to reduce profits by around £3m.
'We reported in September that we received a Statement of Objections in
respect of copper plumbing tube from the European Commission setting out
complaints of alleged anti-competitive practices among a number of parties
including IMI.
The Commission’s investigation is expected to result in a fine during
the first half of 2004. As regards the Commission’s investigation
in respect of copper plumbing fittings, a Statement of Objections is expected
within the next twelve months with a decision on any possible fine likely
to be made by the Commission in late 2004/early 2005. We continue to co-operate
with the Commission in respect of both investigations. IMI disposed of
its copper plumbing tube and fittings businesses during 2002 but retains
responsibility for these investigations and any resulting fines. It is
not possible to give any reliable indication of the likely level of fines.
'2003 has seen a continuation of the improvement brought about by our
repositioning and we will end the year with a strong balance sheet. If
the recent improvement in general economic conditions gathers momentum,
this should provide added opportunity to make further progress. The management
changes referred to below will help us in the next stage of the long term
development and growth of IMI.'
Management changes
The following management changes will take effect in March 2004:
* David Nicholas will join the Board as Executive Director with responsibility
for Fluid Controls, which comprises IMI’s Fluid Power, Indoor Climate
and Severe Service businesses. Aged 54, he will be based in the UK and
report to Martin Lamb. He is currently Managing Director of Tyco Flow
Control Europe and has extensive experience in managing engineering businesses.
* Wayne Whitney will join the Board as Executive Director with responsibility
for Retail Dispense, which comprises IMI’s Beverage Dispense and
Merchandising Systems businesses. He joined IMI in 1987 and held a number
of operational management positions before becoming President of Merchandising
Systems in 2001 and, in October 2003, President of the wider Retail Dispense
businesses. Aged 54, he will continue to reside in the USA and report
to Martin Lamb.
* Barry Pointon, having served on the Board for 9 years and significantly
contributed to the recent restructuring of IMI, has decided to retire
at the age of 57.
* Martin Lamb, Chief Executive, will assume direct responsibility for
major business development initiatives, including mergers and acquisitions,
innovation and emerging markets.
* Trevor Slack continues in his role as Finance Director.
Commenting on the changes, Gary Allen, Chairman, said: 'The changes announced
strengthen the executive team and will enable Martin Lamb to focus on
the strategic development of the Group with strong operational and financial
support.
'In the past three years Barry Pointon has played a key role in IMI’s
corporate activity and the move to lower cost manufacturing and I thank
him for his 22 years’ service in the Group.
We have largely completed the first phase of our repositioning programme
announced in 2001. The need now is to drive forward with the development
of IMI’s businesses and realise the growth potential within them.'
Automotive
Glass division of Asahi Glass Company Ltd is renamed AGC Automotive
Asahi
Glass Company Ltd is an international group organised into four divisions,
namely Display Screens, Chemicals, Construction Glazing and Automotive
Glass. It has now decided to regroup all the Automotive Glazing activities
under the same name, with the same visual identity.
As of 1st January 2004, all the entities in Asahi's Automotive division
take the name of 'AGC Automotive.'
This change reflects the importance which Asahi, as the world leader in
automotive glass, places on offering products and services of an ever-higher
level, in terms of quality, costs and delivery, for the benefit of its
customers, i.e. the car manufacturers and end users.
It also marks the AGC group's confidence in its various operations around
the world: the AGC brand has long been a synonym for quality and innovation.
This major change within the group affects the entities currently operating
under the names of Splintex in Europe, APTechnologies in the USA, Mexico
and Canada, and Asahi Glass in Asia. This means that Splintex with its
production facilities in seven European companies will be renamed AGC
Automotive Europe.
'In this way AGC Automotive clearly demonstrates its determination to
maintain its technological leadership and be ever closer to its customers,
offering them products and services at the forefront of innovation and
anticipating their requirements.' says the company.
'As a responsible 'corporate citizen' concerned about the environment,
AGC has set itself the task of creating values while offering solutions
with constantly higher performance. Its ambition is to become the most
respected supplier to the automotive industry, appreciated not only by
its customers but also by its shareholders, its partners, its suppliers
and its customers.'