NEWS
UK’s Polypipe reports small gains in 2019 results
Polypipe, a UK-based pipe manufacturer, has reported small gains in both sales and profits for 2019. Sales grew by more than
3% to reach almost £448 million (US$545m). Pre-tax profits rose by the same amount, to exceed £60m (US$73m). “Our strategy continued to deliver over the year, with revenue and profit growth despite ongoing market uncertainty and challenging trading conditions – particu- larly in the second half of the year,” said Martin Payne, CEO of Polypipe. “Aside from the yet-unknown effects of Coronavirus on the wider economy, we would expect the current year to be a year of progress.” Sales growth in the
residential systems market – which comes almost
Polypipe made gains in 2019 despite “ongoing market uncertainty and challenging trading conditions”
exclusively from the UK – ex- ceeded 6% to reach £260m (US$316m). Profits in this division grew by 15%, to more than £53m (US$65m). However, results in the
commercial and infrastruc- ture sector declined: revenue remained almost static at around £187m (US$227m) while profits
dipped nearly 11% to around £25m (US$30m). Export revenue from this division, which accounts for around 20% of its overall revenue, was nearly 5% higher than the prior year, with improved volumes in continental Europe and the full-year effect of its Perma- void acquisition. This was
partially offset by further reductions in the Middle East as conditions in this market continue to be challenging, said Polypipe. Polypipe made one acquisition during the year: Alderburgh, a UK specialist in storm water management and building protection systems. The company also boosted the amount of recycled material it uses in it uses in its products from 40% up to 42%. “This has been achieved
through the further roll-out of our multi-layer extrusion process in our Residential Systems segment, helped in the latter part of the year by the acquisition of Alder- burgh – which uses recycled plastic for most of its production,” said Payne. �
www.polypipe.com
Orbia announces mixed results from its Wavin, Dura-Line and Netafim division
Orbia, the Mexican-owned chemicals company that was formerly Mexichem, has announced mixed results in its extrusion-based businesses. The company said that sales in its Fluent business division -- which includes Netherlands-based pipe extruder Wavin, US conduit maker Dura-Line and Israeli pipe irrigation company Netafim – fell by 2% for the year, to US$4 billion. It said this was partly due to lower
sales from Wavin in Europe and South America. Also, Dura-Line saw a reduction in sales, which it said was
6 PIPE & PROFILE EXTRUSION | April 2020
mainly due to “a continued shift to a more profitable product mix as well as a reduction in India sales”. Sales at Wavin fell 5% to around US$2.3bn, while revenues at Dura-Line were 6% lower, at US$667m. However, both these declines were partly offset by a 12% increase in Netafim sales – taking them beyond US$1bn. Despite the general dip in sales,
profitability in the Fluent division increased. For 2019 as a whole, the company said EBITDA was US$590 million – up 17% from US$503 million in 2018.
For 2020 – assuming no major disruption in the global economy – Or- bia says it is confident in delivering “mid-single digit EBITDA growth and stronger free cash flow generation”. Orbia’s overall sales for 2019 declined by 3%, to just under US$7bn. Daniel Martinez-Valle, CEO of Orbia,
said: “As we started doing in 2019, we will double down on operational excellence and focus on markets, products and solutions that will yield higher margins across our key verticals in 2020.” �
www.orbia.com
www.pipeandprofile.com
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