NEWS


ADS profits reach $275m following record quarter


US-based corrugated pipe manufacturer Advanced Drainage Systems (ADS) reported increased sales and profits for the year ending March 2022. Sales grew by nearly 40%


to reach almost US$2.8 billion, while pre-tax profit rose by nearly 23% to exceed US$383 million. The performance was driven by a strong final quarter – in which sales rose by more than 50% and pre-tax profit almost tripled, to nearly US$75m. “We achieved another


quarter of record revenue,” said Scott Barbour, presi- dent and CEO of ADS. “Sales growth of 53% was driven by favourable pricing, as well as volume growth in the domestic construction markets.” Q4 growth helped to


offset inflationary cost pressure on materials, transport and labour.


US$171m) and a 23% increase in other products (reaching US$53m). Interna- tional pipe sales in the final quarter rose by 16%. “Fiscal 2022 played out


Barbour: “We achieved a quarter of record revenue, with sales growth of 53%”


For the full year, domestic pipe sales rose by nearly 47%, to exceed US$1.5bn. Other sales increased by nearly 29%, to almost US$570m. The increases were driven by strong growth in the domestic construction and agriculture markets. International sales were


also healthy, growing by 36% to reach nearly US$225m. This included a 41% increase in pipe sales (reaching


largely as we communicat- ed, with profit improvement occurring in the second half of the year as multiple actions we took to improve pricing and operations were successful,” said Barbour. He said the company’s demand environment, strong backlog, favourable pricing and continuous improvement initiatives gave it confidence for the year ahead.


Net sales for 2023 are


expected to be in the range of US$3.1bn-3.2bn – an increase of 11-14%. Adjust- ed EBITDA is expected to be US$800m-820m, an increase of 18-21%, while capital expenditure is estimated at US$150m-180m. � www.ads-pipe.com


VDMA adjusts


forecast VDMA, the German trade body for plastics and rubber machinery, has amended its forecast for 2022.


It now expects a growth


of between 0 and 2% – having earlier predicted growth of 5-10% this year. Orders fell in the first


quarter of the year by 27%, compared to the same period in 2021. At the same time, sales grew by 3%. Due to factors such as


material shortages, the war in Ukraine and an ongoing Covid lockdown in China – which create uncertainty – VDMA is now downgrad- ing its original forecast. “We only expect a


sideways movement or – in the best case – a slight increase in turnover for 2022, despite full order books,” said Thorsten Kühmann, managing director of VDMA. � http://vdma.org/kug


Dyka raises Tessenderlo performance


Dyka, the extrusion division of Belgian industrial group Tessenderlo, helped to lift performance in the industrial solutions division in 2021. Full-year sales in this part of the business grew by around 21% to €618 million (US$651m). This was mainly due to higher sales volumes and higher prices – which were introduced to compensate for higher raw material, energy and transport costs. The volume increase was positively impacted by the full-year contribution of Dyka’s new production plant in La Chapelle-Saint-Ursin in France, which it


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acquired in 2020. In addition, the growth of the product portfolio helped to increase sales volumes. The division reported an EBITDA of €76m (US$62m), an increase of almost 44%. The company said this was due to an improved product mix and greater production efficiency. n Tessenderlo is to acquire the French plastic piping activities of the Wiener- berger Group. This includes the production plant and associated business of Pipelife France in Gaillon. The plant specialises in pipes for gas, water, and cable protection.


The transaction is expected to be completed during 2022. Tessenderlo will retain all 75 employees. After completion, the business will be integrated into Dyka – which will now have three production plants in France. “This will further strengthen our position on the French market for plastic pipe systems, because our activities in France play an important role in our future plans,” said Gabriël Spruijt, executive vice president of Dyka. � www.dyka.com � www.tessenderlo.com


May/June 2022 | PIPE & PROFILE EXTRUSION 5


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