NEWS Trex sales decline in 2022


Sales at US-based plastic decking manufacturer Trex fell by 8% in 2022, to just over US$1.1 billion. This came on the back of a Q4 decline of 37%, ending in sales of US$192 million for the quarter. Net profit for the quarter declined by 60% to around US$10m, giving a full-year profit of US$185m – and fall of around 12%. The company said this was down to a cautious sales channel rather than a drop in end-market sales. “The sales channel is being very


conservative regarding the amount of inventory it’s willing to hold,” said


Pipes grow at Georg Fischer


Georg Fischer says that its piping systems division reported a sales growth of nearly 10% in 2022 – break- ing CHF2 billion (US$2.2bn) for the first time. The division reported


sales of almost CHF2.2 billion (US$2.3bn) for the year. For the same period, profitability (EBIT) rose nearly 28% to CHF291m (US$315m). Strong organic growth


in the Americas (up 21%) and Europe (up 5%) helped the company to overcome the effects of Covid-19 lockdowns in China and reduced demand for building technology in China and Europe. Price increases were also passed on, which contributed to growth, said the company. � www.georgfischer.com


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Bryan Fairbanks, president and CEO of Trex. “We were producing at a US$1bn level – but weren’t selling at that level for the last six months of the year. The channel is not leaning as heavily into normal early buying as it has in the past.” At the very end of 2022, Trex divested its Commercial Products division – which accounted for sales of around US$47m. “This reflects our decision to focus on driving the most profitable growth strategy through the execution of our outdoor living strategy,” said Fair- banks. “With the sale complete, we


will dedicate our resources to acceler- ating conversion to composites from wood and further strengthening our industry leadership.” In the first quarter of 2023, Trex


expects net sales of US$230m to 240m – a 27% decline on the equiva- lent period in 2022.


“In the first two months of 2023, our plants were building to an annual revenue rate of one US$1bn,” said Fairbanks. “However, if demand is different than expected, we have the ability to quickly flex our production level.” � www.trex.com


Orbia: flat sales in Wavin division


Orbia, the Mexican chemi- cals company, reported increased sales in 2022 – though its Wavin pipes business performed relatively poorly. Sales in Wavin were flat for the year at US$2.9bn. At the same time, profitability also suffered – with operat- ing profit down 32% to US$193m. It said this was due to lower volumes and ongoing cost increases, especially in Europe. Orbia has two other


extrusion-related businesses: US conduit maker Dura-Line and Israeli pipe irrigation company Netafim. At


Above: Netafim is a specialist in irrigation systems


Dura-Line, full year sales rose 38% to US$1,370m, while operating profit more than trebled to US$321m, due mainly to increased demand for fibre infrastructure. In Q4, sales rose 7% and profits more than doubled.


Netafim’s sales dipped by 4% for the year, to around US$1bn, while profits fell by 58% to US$19m. In Q4, sales fell by 14%, and the division posted a loss of around US$29m. � www.orbia.com


Deceuninck boosts sales in 2022


Belgian profile extruder Deceuninck’s sales reached record levels last year. Sales grew 16% to €974m (US$1bn), despite lower volumes. The increase was driven by price increas- es to compensate for rising


PIPE & PROFILE EXTRUSION | March/April 2023


material and energy prices, it said.


Adjusted EBITDA grew 4% to €102m (US$109m). However, net profit slumped by 79% to around €8m (US$8m), due in part to “impairment of equipment


in Russia” and higher income taxes. Sales in Europe – which accounts for nearly half the company’s turnover – rose by more than 11% to €458m (US$489m). � www.deceuninck.com


www.pipeandprofile.com


IMAGE: NETAFIM


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