Analysis Names the 150 most Profitable Companies in the Industry
If
your company made an enviable profit, would you want to shout about it
or keep the news to yourself!
150 companies in the UK Windows & Doors industry have precisely this
dilemma, as for the last three years these companies have been making
nearly three times the profit of the rest of the industry, according to
the latest analysis from Plimsoll. These 150 companies were revealed as
having an average margin of 13.1%, compared to the industry average ofjust
4.1%.
Two different views
Yet this issue of exceptional profit making raised an interesting conundrum
for those concerned. If you are one of these companies making enviable
profits should you be:
a) Concerned that once your competitors, suppliers and customers find
out about your good business they will start to work against you threatening
this profitability?
b) Or proud of your achievements and would want to share this with the
industry.
'Without doubt, these 150 companies are proving the industry can reward
success.
It is surely the ultimate measure of a good company, good employees and
good management to succeed in profitability,' says David Pattison.
Pattison concludes, 'Of course, their dilemma, yet one we would all like,
is how to spend their profits wisely to preserve and maintain their lead
in the market.'
Not all companies enjoying a spell of profit making
A staggering 9% ofthe companies Plimsoll could study are currently loss
making. Looking at the difference between the l50 most profitable companies
and the 88 companies making a loss, the gap was astounding.
The Third edition 2003 Plimsoll Analysis has identified trends in profitability
of the top 1000 companies in the Windows & Doors industry over the
last four years. In measuring total profitability the research looked
at how private companies are structured.
The full analysis of the profitability and financial health of the top
l000 UK companies in the Windows & Doors industry including a free
supplementary analysis ofthe l50 most profitable over the last three years
is available to order for £305.00. You can reach Plimsoll Publishing
on (O1642) 626400 or visit http://www.plimsoll.co.uk.
Readers of The Gl@zine will receive a 5% discount if mentioning this article
upon ordering
Coral is the Latest Fabricator to Choose Deceuninck
Bradford
based Coral Windows and Conservatories has become the latest fabricator
and installer to manufacture Deceuninck profiles. Since moving to (and
restoring) the Coral Mill in Bradford, Coral has become one of the north
of England's fastest growing and most successful replacement window, door
and conservatory companies.
A determination to achieve and maintain top standards, by demanding the
very best products and service, has helped ensure that Coral is one of
only four companies in the whole country to gain the British Board of
Agreement Security standard for both its window and door products. This,
along with meeting the West Yorkshire Police Recommendation Standard,
gives the company 'The Coral Difference'.
Roofline replacement is a market that Coral will continue to develop using
Deceuninck's Perc Installer Scheme to its best advantage.
'I'm a firm believer in stability...This is only the second time in our
twelve year history that we have changed supplier, but quite simply the
quality of the Deceuninck product and the service back-up we receive is
second to none' - John Valente (Managing Director, Coral Windows).
Titon Announces Static Profit on Higher Turnover in 2003 Interims
Ventilation
and Hardware specialist Titon has announced its interim financial results
for the six months to end March 2003. Profit before tax was the same as
the previous year at £702,000 (2002: £702,000) on turnover
7.3% higher at £8,004,000 (2002: £7,456,000). Operating profit
was slightly higher at £617,000 (2002: £616,000). Influenced
by the buy back by the company of 560,000 of its own shares, the basic
EPS were up 5.1% at 4.54p (2002: 4.32p). The directors have declared an
unchanged interim divident of 2.3p.
While the company attributes most of the increase in volume to improved
demand for Titon's handle and stay ranges, there has also been increased
market penetration with the Select and Maxiglaze ventilation ranges. Export
sales are also up.
'Our commitment to extra resources in the areas of sales, marketing and
R&D has been considerable, but appears to be paying off', the company
says. 'While current profits have remained static, we are confident that
longer term profit growth will be best achieved through our present strategies
and through prudent management'.
Titon also announced the purchase, in March 2003, of a 23,000sq ft freehold
unit adjacent to its existing factory complex. This will enable the company
to terminate an existing lease and improve operational effciency during
2004.
Titon says it is continuing to monitor the development of proposed new
Building Regulations, which are fundamental to UK ventilation sales. New
products will be introduced in the coming months to expand the product
range into other areas of ventilation.
SARS fails to blight Laird Group's First Quarter
At Laird Security Systems, orders and sales in the UK in the first four months of this year have been at similar levels to those in the same period last year, and slightly higher in the USA.
Nigel
Keen, Chairman, said: 'Laird is an international Group whose businesses
all hold leading market positions in their industries. Our strategy is
to deliver profitable growth by the continuing development and strengthening
of these businesses, achieving a competitive edge through technology,
customer service and low-cost manufacturing. We focus on specialist markets
which provide opportunities for growth and where our global reach gives
us considerable advantages compared to our competitors. In particular,
our growing presence in Asia provides proximity to our customers as well
as a lower cost supply base.
'Laird made significant advances in 2002. We successfully rationalised
and refocused our portfolio, strengthened our businesses, reduced our
operating costs and continued to drive our expansion into Asia. The fundamentals
of our businesses are sound and we remain close to our customers. All
of these factors contributed to the improved financial performance that
was delivered, with all three of our divisions recording improved profitability,
despite the weak market conditions which prevailed during 2002.
'Trading performance in the first four months of this year has been in
line with our expectations.
'At Laird Technologies, average order intake over the first four months
has been at similar levels to that recorded in the last quarter of 2002.
As previously disclosed, turnover in the first four months of last year
benefited from a high level of new product launches by key customers.
As expected, this has not been repeated this year. The actions we have
taken to strengthen the business, reduce costs and expand in Asia ensure
that Laird Technologies is well placed to compete in current market conditions.
'At Laird Security Systems, orders and sales in the UK in the first four
months of this year have been at similar levels to those in the same period
last year, and slightly higher in the USA. At Laird Plastics, orders and
sales levels have been ahead of those in the same period last year, although
margins have been constrained as a result of higher input prices related
to the increase in the price of oil.
'While the SARS epidemic has received considerable publicity, we have
not identified any effect on our business other than as a result of the
curtailment of travel on the part of some of our employees. Precautionary
health and hygiene measures are in effect in our plants and offices in
Asia and we continue to monitor the situation closely.
'As I stated in the 2002 Accounts published in early March this year,
the considerable geopolitical uncertainty makes this year particularly
hard to predict. Despite this, we are on track and are well positioned
to make progress this year. The leading market positions which our businesses
hold, the Group's sound financial structure and the actions we are taking,
together provide a solid platform for the future.'
Tel: 020 7468 4040
Bohle
Scores a Double at Schott Desag
Bohle
has supplied a second fully automatic horizontal glass drilling machine
to Schott Desag, a leading international manufacturer of special glass,
which has proved to be the best solution for drilling thin instrument
glass.
Schott Desag is using Bohle's advanced drilling machinery at its specialist
site in the produstion of ultra thin glass - just 2mm thick - for car
instrument panels. An exceptional degree of accuracy is required, to within
O.1mm, to ensure control dials can be fitted with absolute precision behind
the glass. Bohle has developed a high quality, highly accurate fully automatic
double drilling machine incorporating a number of features that make it
possible to undertake even the most demanding glass processing task. These
include the use of electronic control systems for the spindles, rather
than hydraulic or pneumatic, which ensure a very fine control of depth
and speed. In addition, synchronised top and bottom drilling saves valuable
production time, especially on thick glass types.
Nelson Graham, Bohle Machinery Sales Manager comments, 'Our automatic
double drill offers the very best in speed and accuracy, which to date
could only be found on machines costing twice the amount. At around £18,000,
this is the most sophisticated horizontal double drilling machine we manufacture,
and represents incredible value for money when you consider its features
and capabilities coupled with a very sturdy construction.'
Further information on Bohle's range of glass processing machinery is
available by calling freephone 0800 616151.
Emplas Joins the Veka 'Bandwagon'
Wellingborough-based
trade fabricator Emplas has marked becoming a Veka fabricator by staging
a two-day exhibition to introduce its new product folio to customers.
Over 80 people visited Emplas' 45,000 square feet factory and the Veka
'Big Rig' exhibition trailer located in the company's car park, during
the event, which was also supported by conservatory roof supplier Ultraframe.
'This was an excellent way to begin our partnership with Veka, and to
offer so many of our customers the opportunity to see and examine for
themselves our new product range,' said Emplas Managing Director Kevin
Johnson. 'We have some very exciting new products that will greatly increase
sales opportunities for us and our customers.'
Emplas chose Veka following a complex decision-making process that involved
the selection of eleven profile suppliers for an initial list, which was
then reduced to a final three from which Veka emerged as the winner. 'The
key was product,' explained Emplas' Sales and Marketing Director Richard
Young. 'ln order to maximise opportunites we needed to move into additional
market sectors, and to answer the demands of our existing customer base
and many who would buy from us if we had the right product offer. Veka
has that product offer, in addition to an excellent reputation in the
market place.'
The move to Veka allows Emplas to offer both the Matrix 58mm and 70mm
suites, and a huge and varied product portfolio. This includes vertical
sliders and other products believed to be crucial with which Emplas and
its customers may move into new sectors, such as New Build.
Mark Rogers, Sales & Marketing Director for Veka was delighted to
add Emplas to the company's customer base: 'Emplas is a major player in
the UK window, door and conservatory market and we are very happy indeed
to have the opportunity to work with them. To have been chosen following
such a thorough selection process is even more satisfying. It's a superb
partnership.'
Tel: 01282 716611
Web: http://www.vekauk.com
Synseal
Prepares for Global Demand
Synseal
invested £1 million in the last eight months in preparation for
the launch of its new Global conservatory roof. The Global roof is designed
to fit all window profile systems. 'We have installed a new polycarbonate
cutting centre,' explains Nick Dutton, Sales and Marketing Director of
Synseal Extrusions Ltd. 'We have also bought six new delivery vehicles
dedicated to Global. At a time when industry demand has created supply
problems for some systems, we want to ensure Global deliveries are as
good as the complete deliveries our profile customers enjoy 99.5% of the
time.
'Staff training has been underway since Christmas, to ensure we can cope
with the demand,' continues Nick, 'One month prior to launch and we have
already received orders for 200 roofs per week.'
Tel: (01623) 443 200
Web: http://www.synseal.com
Saint-Gobain Glass Launches 2nd Generation Self-Cleaning Glass
Following
the successful launch of SGG Aquaclean, Saint-Gobain, the European glass
manufacturer, has added a new second-generation self-cleaning product
to its 'Clean' family - SGG Bioclean.
SGG
Bioclean draws upon the 'film-forming' advantages of hydrophilic self-cleaning
products but has additional photocatalytic properties, harnessing the
power of UV light to break-down dirt before rainwater rinses it away.
It can significantly reduce both maintenance costs and time compared to
normal glass, however the company claims its neutrality in transmission
and reflection also presents an advantage over competitive photocatalytic
products.
With its dual self-cleaning action, SGG Bioclean can provide substantial
savings in building maintenance costs. It can reduce cleaning by up to
a half, representing a reduction in the overall cost of cleaning of up
to 50%.
Compared to normal glass, the product's self-cleaning coating keeps the
glass cleaner for longer in outdoor applications where the glass is exposed
to daylight.
This opens up the extent of new build and refurbishment applications for
SGG Bioclean, including all-glass curtain walling facades, glass roofs,
windows and doors, exterior shop fronts, atriums, greenhouses and street
furniture.
SGG Bioclean can also be used in highly polluted environments (around
airports, road networks, in urban and industrial areas, etc) as its photocatalytic
properties will allow more time to elapse between window cleaning.
Commenting on the launch, Darren Kearns, Group Marketing Manager of Saint-Gobain
Glass, said, 'Despite its hugely attractive self-cleaning property, the
real beauty of the product is that its neutrality in transmission and
reflection is the same as normal glass. This is an advantage which sets
it apart from competitive products and makes it highly desirable to all
sectors, especially for home improvements.
'The launch will also offer a much welcomed and extended choice to the
market in a time where self-cleaning products are experiencing high demand.'
SGG Bioclean is available in an extensive range of thicknesses (from 4mm
to 10mm) and can be both toughened and laminated before being incorporated
into double-glazed units. The product can also be effectively combined
with the Group's low-e brand SGG Planitherm, for an enhanced thermal insulation
double-glazed unit with good neutrality and performance.
SGG Bioclean is manufactured by Saint-Gobain Glass and is processed by
its partners and the downstream Saint-Gobain Network (Solaglas in the
UK, Dockrell Glass in Ireland).
SGG Bioclean is available through selected leading window and conservatory
companies.
Click
here for Questions and
Answers on Bioclean
Tel: 024 7654 7667 (+44 24 7654 7667 from Ireland)
Web: http://www.saint-gobain-glass.com/bioclean
Glaverbel Launches Planibel TOP NT, a Neutral, Toughenable, Low-e Coated
Glass
Glaverbel
presents Planibel TOP NT, a low-emissivity, toughenable glass. Specifically
designed for use in double glazing, Planibel TOP NT is a coated glass
whose neutral appearance is in perfect harmony with current trends.
Since
Planibel TOP NT can be toughened, glass processors with a toughening furnace
can offer their customers shorter delivery times, smaller delivery quantities
and replacement double glazed units.
For architects and customers the benefits of this glass are its aesthetic
qualities, which are identical to those of Planibel TOP N: a perfectly
neutral appearance, very low reflection levels and high light transmission.
This kind of performance makes Planibel TOP N a key European benchmark.
Planibel TOP N, TOP NT and Stratobel TOP N (laminated security/safety
version) can be harmoniously combined in the same structure.
Planibel TOP NT's secret is the composition of its coating, specially
devised by the Glaverbel R&D Centre. The R&D Centre's mission
is to work today to develop the high-tech glass products of the future
that better meet customers' needs. Planibel TOP NT's soft coating - perfectly
capable of withstanding the toughening process - is vacuum sputtered onto
a clear glass sheet, giving it good thermal insulation properties. The
coating has a low U-value (1.2 W/m2.K) and offers a level of insulation
60% higher than that of conventional double glazing.
Planibel TOP NT glass is designed for use in residential and commercial
applications: broad glazed surfaces, conservatories, doors and windows.
Patio
Enclosures now Offers Sunrooms with Sunclean Self-Cleaning Glass by PPG
Industries
Providing
cleaner views and homeowner convenience, Patio Enclosures, Inc., the American
manufacturer and installer of sunrooms, is now offering SunClean self-cleaning
glass by PPG Industries.
Available in Patio Enclosures' entire line of sunrooms, SunClean self-cleaning
glass has a durable, long-lasting coating fused into the glass at high
temperatures during PPG's patented manufacturing process. The coating
uses the sun's ultraviolet rays to break down and loosen organic dirt
on the window's exterior and it creates a sheeting action, so that rain
or a light water spray can easily rinse the loosened dirt away with minimal
streaking and spotting.
Patio Enclosures, based in Macedonia, Ohio, is among the largest companies
on a growing list of 23 sunroom and window manufacturers in the United
States and Canada who are taking advantage of PPG's new glass technology.
'Sunrooms provide great vistas, letting homeowners enjoy the comforts
of being indoors while savouring the beautiful views of the outdoors,'
said Marc Fox, vice president of sunroom marketing for Patio Enclosures.
'With SunClean glass, the views are better than ever, and we're pleased
to be able to bring this technology to homeowners from coast to coast.'
Available in both standard and energy-efficient low-e glass, SunClean
glass accents and upgrades Patio Enclosures' full range of glass offerings
from PPG, Fox said.
'We're delighted that Patio Enclosures has added SunClean glass to its
lineup of high-performance offerings,' said Lisa Detwiler, new product
manager for PPG's flat glass business.
According to Fox, one of the reasons Patio Enclosures selected SunClean
self-cleaning glass is its proven durability. 'When homeowners choose
to add a sunroom, they are making a real commitment to their property,
and SunClean glass is designed to provide a lasting enhancement.'
The durability of SunClean glass was tested under severe weather conditions
by an independent laboratory for PPG. Samples endured 90 consecutive
days of extreme temperature cycling, up to 180° F and down to minus
20° F. Others were subjected to 90 days of high winds (60 mph)
and saltwater spray. After each test, the SunClean glass retained its
self-cleaning properties.
Founded in 1966, employee-owned Patio Enclosures, Inc. provides sunrooms,
solariums and skylights for residential and commercial applications in
38 states and the province of Ontario. Patio Enclosures has 45 showrooms,
including SuperStores in Northeast Ohio and Pittsburgh that offer a full
line of casual furniture, gas grills, fireplaces and accessories.
Web: http://www.patioenclosures.com
Web: http://www.ppgsunclean.com
Kawneer Opens New London Office
Runcorn-based
Kawneer UK has opened a new office in the heart of London. Located at
41-42 EastcastIe Street, London W1W 8DU, the office provides the UK's
architects and specifiers situated in and around the capital, as well
as the Home Counties, with a fast response, technical support centre.
Commenting upon the business rationale behind the decision to open a new
office in London, Terry Whitham, Kawneer's commercial director in the
UK, says, 'A significant proportion of projects, not only in the capital
but also nation wide, are designed by architects and specifiers working
in and around London. In today's fast moving, highly pressurised construction
environment, these key designers and decision-makers need to know that
they wilI be provided with comprehensive and accurate technical information
and bespoke solutions promptly and efficiently, enabling them to respond
effectively to the needs of their clients and the construction team'
As well as providing a technical support centre, Kawneer's new London
office will be the base out of which its team of architectural sales managers
for the London area will operate.
Contact: Richard Bulch
Tel: 0207 409 1422
Email: mailto:richard.bulch@alcoa.com
Quality Mark Wows Crowds in Skeleton House at BBC Good Homes Show
A
skeleton house was used to spread the Government's good builder message
to thousands of visitors at the BBC Good Homes Show. Staged at the NEC
in Birmingham from 8-11 May, the event was used by the Department of Trade
and Industry to raise awareness of its Quality Mark Scheme.
Designed with the home improvement market in mind, Quality Mark, works
by placing contact details of independently assessed and accredited tradesmen
who reach the required standard on a single national register. This is
accessed free-of-charge by phoning low cost call centre number 0845 300
80 40 or via the internet at http://www.qualitymark.org.uk.
To spread the Quality Mark word, a skeleton house frame was erected at
the NEC and visitors were able to walk through three distinct zones inside.
The first was the 'inform' zone where displays of Quality Mark information
and case studies helped visitors get to grips with the details and mechanics
of the Scheme.
Second was the 'discover' zone, where computer terminals and screens were
plugged into the Quality Mark website for homeowners and tradesmen to
navigate through more detailed background information.
And the final zone, 'discuss', featured a refreshments bar and sofas set
out living room-style for people to sit and talk to Quality Mark officials
about the Scheme in more detail while having their questions answered.
Construction Minister Brian Wilson, said:
'This is all in keeping with our continued drive to spread the word about
Quality Mark, principally to the trade to get contractors to register
for assessment and scheme membership, but also to homeowners, letting
them know about the benefits of peace of mind and protection that using
these accredited tradesmen can bring. The skeleton house was a novel and
stimulating way of doing it, attracting people and drawing them in to
discover more at their own pace.'
The concept for the house as exhibition stand came from London-based creative
agency Blair Europe. Its Creative Director Simon Shaw explained:
'We stripped back a typical house to its key contours, leaving the skeleton
structure revealed, and then abstracted the key recognisable icons of
a house - front door, staircase, door frame and walls - and positioned
them in this framework.
'By adding existing graphics to the stand, case studies, film and large
'strapline' quotations, the welcoming features of a home were transformed
into an interactive information resource.'
Shepley
Invests Three Quarters of a Million to Satisfy Growing Demand
Trade
fabricator Shepley Window Systems claims a successful 2002. The company,
winner of the Glassex Manufacturer of the Year award and two times winner
of the Window Industries Manufacturer of the year award, increased weekly
production to 4,000 frames at the end of 2002.
Managing Director Gary Torr said, 'Since our management buyout in 2000
Shepley has expanded steadily, utilising lean manufacturing expertise
to squeeze the maximum from our existing plant and machinery with no reduction
in quality or customer service. However, with demand continuing to rise
we have invested to achieve greater capacity, enabling us to supply 5,500
frames a week from the start of 2003.
'As well as a new factory for the new 70mm Ornate window system, we have
invested in a new 8,000 sq ft factory for conservatories, a prestigious
new reception area housed in an elegant 20 by 14 foot Shepley conservatory,
the latest equipment, facilities and additional personnel for our customer
services department, as well as a state of the art customer conference
room with the latest presentation equipment.'
In total Shepley has invested £750,000 in expanding and upgrading
facilities in 2002. 'Investing has to be a continuous activity to keep
ahead of demand and help us become ever more professional. It's a Shepley
thing,' explained Gary.
'We've
grown strongly since our management buyout in 2000,' says trade fabricator,
Shepley Window Systems' managing director Gary Torr.
'We hit sales of £18.3 million in 2002,' says Gary, 'up 20% on 2001,
and we are well on course for a further 20% growth with sales of £22
million in 2003. Average weekly output was 3,300 frames a week in 2002,
although we achieved 4,000 at peak times. Strong growth in our national
Visage dealer network, which achieved sales of just under £100 million
in 2002, and the demand for conservatories continuing to mushroom required
us to invest in extra capacity for windows and doors (to 5,500 frames
a week), and conservatories (to 100 a week).
'We face the future in very strong shape,' concludes Gary.
Tel: 0161 339 2433
Web: http://www.shepley.com
Winstar Means Light Work for the Smaller Fabricator
Business
Micros has announced that it broke all records in March 2003 by writing
£325,000 worth of business.
Although it is some parts due to its new Evolution solution, the company
still attributes much if its success to the continuing popularity of its
original WinStar programs - user friendly software package that provide
smaller fabricators with immediate, tried and tested window manufacturing
solutions.
'WinStar and WinStar LT were the precursor for many of our subsequent
products, and still maintain a significant impact on today's fabrication
industry,' said Business Micros' director Graeme Bailey. 'There is a growing
trend where many smaller fabricators prefer to run small, efficient businesses
and concentrate on maximising profit margins and efficiency. The WinStar
range has a definite role in helping them achieve these goals.'
For those fabricators wishing to grow, Business Micros works with the
fabricator in upgrading to either the full Winstar or Evolution software,
providing added power and features to help companies cope more effectively
with increasing production rates.
New Midlands Distributor for UKae
UKae
Ltd has announced its appointment of established IGU component and plastics
supplier Lester & Co Ltd as an exclusive distributor of all UKae products,
serving customers in the Midlands area. The partnership between the two
companies was effective from 1st March 2003.
A
specialist supplier of IGU components for over 10 years, Lester &
Co is based in Cradley Heath, Birmingham and will be able to offer UKae
Midlands customers considerable advantages. A family-run business, Lester
& Co has its own transport fleet and offers next-day delivery within
a 30 mile radius. The company's Managing Director Les Jennings and his
team aim to provide a superb level of personal service, a purpose that
is supported by the company's status as a BSI ISO 9001 approved organisation.
The company also offers the benefits of a full trade counter service.
With all UKae products soon to be made available through Lester &
Co, UKae's Sales & Marketing Manager Jason Williams believes that
the partnership will further strengthen UKae's reputation and market position:
'It is entirely appropriate, given our shared experience of the market,
that UKae and Lester & Co join forces. The company has proven skills
in all areas of IGU production and I believe that our new arrangement
can only benefit our Midlands customer base. Not only will they get to
deal with a knowledgeable distributor but, as this will enable UKae to
concentrate more time and resources on research and development and improved
production, they will also gain a lot more from us.'
UKae's new Midlands distributorship is in addition to the company's existing
distribution network throughout the UK. The company already has three
exclusive agents in South Wales, Scotland and Ireland: Principality UPVC
Products of Cardiff, Abacus of Dundee and Glasgow and Mitremaster of Cork.
Tel: 0121 313 3010
Vitro
Announces Unaudited Q1 Results
Results
for the quarter reflected the weakness prevailing in macroeconomic conditions
in the U.S. and Mexico. Additionally, performance during the quarter was
affected by the impasse during the pre-war period, as well as a colder
than expected winter in the U.S. Furthermore, the 18.3 percent YoY devaluation
of the Mexican Peso vs. the U.S. dollar affected the YoY comparison of
the Company's results when converted into dollars (even though, in the
long-run it benefits its competitive domestic position over imports, as
well as exports). In terms of sales, approximately 50 percent of the Company's
sales are domestic, and even though 66 percent of them are dollar-linked,
there's a lagged-effect in terms of price increases subsequent to devaluation
in certain segments. In terms of costs, approximately 75 percent of the
Company's cost structure is dollar-linked.
Highlights for the quarter were as follows:
• Consolidated net sales for the quarter declined YoY by 6.2 percent
to US$525 million
• Consolidated EBlTDA for the quarter decreased YoY by 21.8 percent
to US$80 million
• Consolidated net loss for the quarter of US$15 million, as a result
of a non-cash exchange loss of US83 million, and the absence, when compared
to 1Q 2002, of the legal tax rate reduction, which benefited deferred
taxes last year
• Consolidated outstanding debt remained flat QoQ. This includes
the net outstanding balance of the proceeds from a medium term note issued
on February 2003 for Ps$1.14 billion as well as the additional restricted
cash associated with a syndicated facility executed at Flat Glass on 1Q
2003 and the temporary repurchase of invoices from an off-balance factoring
agreement
Consolidated net sales
Sales were affected by the difficult macroeconomic conditions during the
first quarter aggravated by the deadlock generated during the pre-war
period. The divestiture of Ampolletas on April of 2002 accounted for 23
percent of the YoY decline for the quarter. Also, as mentioned, the 18.3
percent YoY devaluation of the Mexican Peso against the U.S. dollar affected
the YoY comparison. Excluding the currency devaluation effect, sales YoY
wou!d have decreased by 3.3 instead of 6.2 percent.
Flat Glass' sales declined by 2.0 percent YoY, or US$6 million, mainly
within the U.S. non-residential construction segment and the OEM auto
market. At Glass Containers, sales declined 10.8 percent, at US$25 million,
due to: the divestiture of Ampolletas, which accounted for 32 percent
of the decline; the distortion created by the currency devaluation effect,
and a particularly cold winter in the U.S. that had a negative impact
on beer and soft drink consumption. Glassware' sales decreased by 11.2
percent, or US$7 million, also affected in dollar terms from the currency
devaluation effect YoY and by lower sales in the industrial domestic segment.
The Company reported a consolidated net loss of US$15 million, which includes
a non-cash exchange loss of US$23 million, compared with a non-cash exchange
gain of US$21 million on 1Q 2002, and a negative effect on the YoY comparison
over taxes of US$12 miliion resultant of the absence, when compared to
1Q 2002, of the legal tax rate reduction which benefited deferred taxes
last year. On March 31st, 2003, consolidated outstanding debt was US$1,576
million.
As mentioned, the 18.3 percent YoY devaluation of the Mexican Peso vs.
the U.S. dollar affected the YoY sales comparison, particularly considering
that approximately 17 percent of the company's sales are peso denominated.
Assuming constant exchange rates, sales would have decreased by 3.3 percent
YoY. At the same time, it should be noted that in the longer term, a stable
fair-valued peso benefits the domestic competitive posltion of the Company's
products over imports.
Flat Glass sales declined mainly due to continued weakness and uncertainty
in the U.S. economy aggravated by the war in Iraq. Particularly affected
were the non-residential construction segment, and the OEM auto market
in the U.S. These declines were partially offset by increases in the domestic
construction segment and the Spanish operations.
Glass Containers' sales decrease reflects the Ampolletas' divestiture
during April 2002, which accounted for 32 percent of the decline at the
division (23 percent of the overall decline). Sales were also impacted
by the currency devaluation effect, and the steeper-than-usual seasonal
declines in the beer and soft drink segments that are indirectly exported,
as a consequence of the unusually cold winter in the U.S.
Glassware's sales were down at the industrial segment of the domestic
market, partially offset by an increase in the domestic retail and wholesalers
segments since a weaker peso makes imports less competitive against the
Company's domestic products. A decrease in demand in the plastics segment
also affected sales.
Sash
Supports Local School in Technology Competition
The
directors and staff at window and conservatory manufacturer Sash UK pride
themselves on being part of their local community and are always eager
to help local organisations in need. When children from a local Grimethorpe
school were in need of sponsorship to enter a technology competition involving
local schools they were only too willing to assist, support that helped
the school to win the first prize of £1,000 of technical equipment.
Willowgarth
High School was one of many schools invited to enter the competition run
by the Barnsley Rockley Rotary Club which was open to all secondary schools
in the Barnsley MBC area and targeting students at Key Stage 3. The challenge
set by the club was to create a craft at a cost of no more than £100
which could cross land with clear air beneath for 10 metres, float for
10 metres and fly for 10 metres. Each project had to be accompanied with
details of design and planning processes and proof of how they managed
to raise funding.
30 children from Willowgarth were divided into teams who prepared their
designs and presentations using a computer, from which a final entry was
chosen to represent the school. Once the team of three had been chosen
to represent Willowgarth they were given the task to go out and find sponsorship
for their design.
The Sash UK factory dominates the local landscape and is the area's largest
employer, so the enterprising youngsters contacted the company and arranged
a meeting to discuss their plans and see if Sash would be interested in
sponsoring the application.
Joint MD for Sash, David Ruzicka, said: 'We were very impressed with the
professionalism of the students involved in the project and the way they
approached their proposal for sponsorship to us. We have a long history
of supporting the School with particular emphasis on technology and innovation.
This dates back as far as the early 90's when we were regular visitors
to the Willowgarth school classroom setting technology projects, careers
advice and providing an outside business resource for pupils and staff
to visit.
'It goes without saying that we were delighted to hear that Willowgarth
won the competition,' he added.
With a strict remit for the design a number of schools that had originally
shown interest dropped out, as they could not come up with a craft within
the build budget of £100. Despite many teams not coming through
with the goods, Willowgarth's team were still up against strong competition
but won hands down with their craft.
Tel: 01226 719969
Web: http://www.sashuk.com
Oldest
Shop in England Discovered at Berkhamsted and Rescued from Dereliction
English Heritage recently announced a £250,000 grant towards repairs to save the oldest known timber-framed shop in the country. The 13th century structure was discovered by chance by local builders once they began work on what appeared to be a Victorian property at 173 Berkhamsted High Street, Hertfordshire.
The owners, who live locally and wish to remain anonymous, immediately called in specialists from English Heritage and Dacorum Borough Council who recognised the importance and rarity of the medieval structure. Dendrochronological (tree ring dating) tests were then carried out by University College, London, which revealed that the timbers had been felled some time between 1277 and 1297. Interpretation of the layout of the building points to its use as a shop. A historic well located at the back of the property is also believed to have been part of a workshop.
Dr Simon Thurley, Chief Executive of English Heritage, said: 'This is an amazing discovery. It gives an extraordinary insight into how Berkhamsted High Street would have looked in medieval times. English Heritage’s support, added to considerable financial commitment from the owners, has proved vital in safeguarding the future of this important Grade II* ‘Building at Risk’.'
Andrew Derrick, Assistant Regional Director for the East of England for English Heritage, said: 'This is an exceptional grant for an exceptional building, the true significance of which has been revealed by sophisticated dating techniques. We are delighted that the building is to be repaired and returned to its historic use as a commercial premises with living accommodation on the upper floor.'
With its attractive Victorian façade, 173 Berkhamsted High Street thrived as the town’s pharmacy from 1840. The present owners purchased the property in spring 2000 at which time its condition was giving increasing cause for concern. Following investigations into the history of the building, works to upgrade the shop into an office and reinstate living accommodation are now ready to start. Specialist carpenters and craftsmen will re-work parts of the walls, preserving the timbers and beams, as well as retaining and repairing the roof structure. The recently uncovered historic well will also be incorporated in the design. The new building is due to open with special public access in autumn 2003.
Overseeing the repair and conservation work, historic building consultant, Richard Oxley, said: 'The uniqueness and value of 173 Berkhamsted High Street means that a very sensitive approach must be adopted to its repair. A team of skilled craftspeople and historic building consultants will use a variety of traditional repair methods to safeguard and utilise the historic fabric of the building. The repair project will breathe new life into this important property in the centre of Berkhamsted.'
Carlson
Systems Buys Wegoma in US
Carlson
Systems, a diversified supplier of products and equipment for the fastening,
packaging and product assembly industries based in Omaha, NE, has acquired
Wegoma, Inc. The supplier of window and door production equipment has
been formally renamed Carlson Wegoma LLC, and will be aligned with the
Carlson System Engineering division. It continues to operate in Twinsburg,
OH, under the Wegoma name with existing personnel.
Carlson has over 40 locations throughout a 20-state area. Its Carlson
Systems Engineering division is well established in the fenestration industry,
primarily supplying assembly equipment for wood windows and storm doors.
'I am particularly excited about the future opportunities for our combined
organisation,' says Chuck Gibbons, vice president and general manager
for the division, who will serve in the same role for the Wegoma operation.
'In Wegoma, we see numerous similarities to our own organisation. A common
philosophy to design and manufacture quality machine products that fit
our customer’s needs; and further, a common commitment to provide
and service those products as the best solutions possible to manufacturers.
This is especially apparent within the fenestration industry, where we
share many customers.'
'Breakthrough' Techniques will bring Europe's Premier Cultural Centre
to Life
A
new type of glass, which has been specially designed for the Wales Millennium
Centre - a Millennium-Commission funded project, is in the process of
being installed in the building.
The
Architectural Glass Department at Swansea Institute of Higher Education,
which provides the only formal training in the UK for artists working
in this medium, have patented the unique glass, which will help create
stunning lighting effects at the visionary centre.
The Department has worked closely with the architectural team from the
early stages of planning, to create 10 cm thick strips of solid glass,
which will be sandwiched between the strata of slates on the outer walls
of the building.
Through the new technology, multiple sheets of the green Soda Lime glass
are heat fused to form solid blocks. These blocks will function as glass
veins in the building, allowing natural light to penetrate the building
during the day, whilst at night emitting artificial light from within
the Centre to create an even more spectacular external effect.
Judith Isherwood, Chief Executive at the Wales Millennium Centre, explained:
'The design of the Wales Millennium Centre is inspired by the landscape
and industrial heritage of Wales. It is great news that a Welsh College
has played such an important role in ensuring that the very fabric of
this dynamic building is from Wales.
The Centre will represent the whole of Wales and will be a showcase building
for the whole of the UK and the world to enjoy.'
Rodney Bender, Head of the Glass Department at Swansea Institute, said:
'We are delighted that the skills and expertise we have here are being
harnessed to create this individual glass design. There will be eight
areas at the front of the building with the glass veins and we are currently
installing the third section.'
'Towering'
Investment for Brunner Mond's Lostock Plant
A
major two-year £3m investment to automate the 23 cast iron towers,
used for carbonating ammoniated brine to form sodium bicarbonate crystals,
at Brunner Mond's Lostock plant in Cheshire is now under way to ensure
the continued production of the highest quality soda ash.
The company is one of the first to implement state-of-the-art Foundation
Fieldbus control system on a continuous process plant in the UK.
Foundation Fieldbus instruments are digital apparatus which communicate
directly with one another as well as the 'host' control system computer.
Compared to traditional instruments, they send much more information about
themselves and the process to operators and engineers. As a result, any
unusual readings can be diagnosed more quickly and accurately and problems
with equipment or with the chemical process can be corrected earlier,
before they have any impact on product quality or output.
Martin Smith, Control/Electrical Engineering Manager at Brunner Mond,
said: 'Close control of the ammonia-soda process is critical as the quality
and chemical composition of the soda ash depends on the size and shape
of the crystals formed in the 20 metre towers.
'The new 'intelligent' system enables us to create and maintain exactly
the right conditions for nucleation and growth of the crystals and includes
advanced sequencing of the towers to ensure optimum product quality in
the shortest possible time.
'An evaluation of the new technology on the first two towers has demonstrated
that we are already achieving real product quality benefits.'
The system will be rolled out across the remaining 21 towers over the
next two years as part of an overall £6.5 million investment in
the upgrading of key control systems at the Lostock plant.
Contact Mark Chitty at Brunner Mond
Tel: 01606 724000
BSI
Group Announces Annual Results in the UK
British
Standards, the National Standards Body (NSB) at the heart of the BSI Group,
had another prolific year in 2002 with a record standards output. Over
180,000 standards were sold and a record 2,000 new standards published.
An increasing proportion of its output is now 'informal standards' - which
are produced jointly by British Standards and its customers - reflecting
both its commitment to customer focus and its responsiveness to current
and future market needs.
This approach should be accelerated in a partnership with DTI and CBI
on the National Standardisation Strategic Framework (NSSF). By putting
innovation and customer needs centre stage, the NSSF represents the most
significant development in the evolution of standardisation in the UK
for many years.
Key to its strategy and growth, the BSI Group as a whole continued to
extend its reach and operations in international markets, further developing
its worldwide presence and capability. The acquisition of KPMG Quality
Registrars' North American ISO management systems certification business
positioned BSI Group as the number one registrar in North America. Other
office and facility openings spanned the globe from Korea, Japan, Singapore,
Dubai and Hong Kong to Brazil, Bahamas, Panama, Puerto Rico and Mexico.
The National Standards Body also extended its international activities
with an extensive programme of technical assistance to other governments
and NSBs in Turkey, Egypt, Russia, Albania, Ethiopia and Romania.
BSI Group has also announced the appointment of W Wayne Booker, formerly
vice-chairman of Ford Motor Company's Global Operations, to the BSI Board.
Mr Booker joined BSI on 1st May 2003 as a non-executive director. His
wealth of experience in the automotive sector and in developing new markets
including those in Asia and the Americas, will boost its global capability.
Financial highlights
Strong results have been delivered by the BSI Group against a backdrop
of general reduction in international trade post the events of 11th September
2001.
* Increase in operating profit (including associates but excluding exceptionals
and goodwill amortisation) of £21.3 million compared to £21.1
million for the year to 31st December 2001
* Group turnover up at £232.8 million
Commenting on the results, Chairman Sir David John KCMG said:
'I am pleased to report a strong performance in a difficult international
trading environment. These results are a credit to the management and
staff and I warmly thank them all for their efforts.'