06/08/2012
Impreglon Sales Increase 12% in First Half of 2012 to 40.98m Euro.
Recession Delays Launching of Major Projects
After a strong first quarter 2012, the global recession left its mark particularly on profits towards the end of the second quarter. While depreciation and start-up expenses for four new facilities completed in late 2011 and three major projects posed significant expenses, projected sales were not achieved due to the weaker global economy. Especially the delayed start-up and the lower production volume - a result of the soft economy - of the three major projects, costing over 10 million EUR, placed a strain on the EBIT results.
Because of the weak economy and seasonal trends, management is not anticipating improvement during the third quarter. However, increasing production in the new projects should not only result in higher organic revenue for the fourth quarter and particularly for 2013, it should also mean greater profit. As far as inorganic aspects go, the weak global economy offers acquisitions of potential interest, continuing the current 'buy & build' strategy. After acquiring a majority share of 'Aixite Surface Technology' in China and recently purchasing the surface engineering company 'Finished Products' in Australia, one or two new acquisitions should still be possible within 2012.
With 23 plants in 12 countries and on four continents around the world, Impreglon is a global leader in surface engineering.
