NEWS


ADS sales exceed $3bn despite Q4 revenue dip


US-based corrugated pipe manufacturer Advanced Drainage Systems (ADS) reported increased sales and profits for the year ending March 2023. Sales grew by nearly 11%


to reach US$3.1 billion, while pre-tax profit reached US$511 million – a rise of nearly 86%. The performance came on the back of a final quarter in which sales fell by 9% but pre-tax profit rose 83% to US$107m. “Fiscal 2023 was our sixth consecutive year of record revenue and profitability,” said Scott Barbour, presi- dent and CEO of ADS. “Fourth quarter net sales and profit came in above our guidance for the full year, despite weakness in our core non-residential and residential end markets.”


International sales were


Barbour: “Fourth quarter net sales and profit came in above our guidance for the full year”


For the full year, domestic pipe sales rose by nearly 13%, to exceed US$1.76bn. Other sales increased by 23%, to exceed US$700m. The increases were driven by growth in the domestic construction and agriculture markets.


also healthy, growing by more than 6% to exceed US$239m, due to growth in the Canada, Mexico and export businesses. This included a 5% increase in pipe sales (reaching nearly US$180m) and an 11% increase in other products (reaching US$59m). Interna- tional pipe sales in the final quarter fell by around 14%. ADS estimated net sales for 2024 at US$2.6bn-2.8bn – a decrease of 14-24% – which the company said was made on the basis of “current visibility, backlog of existing orders and business trends”. “In the coming year, ADS will be subject to challeng- ing economic fundamentals underlying the residential and non-residential mar- kets,” said Barbour. � www.ads-pipe.com


Aliaxis raises stake in Uponor


Belgium-based Aliaxis has raised its stake in Finnish pipe maker Uponor to 20%. This is four times the


stake that it held on 17 April this year – when it announced its intention to acquire 100% of the company with an offer of €25 (US$27) per share – valuing Uponor at around €1.8 billion (US$2bn). Uponor’s board has


rejected the move – saying it has investigated the feasibility of “other strategic alternatives”. “Subsequent to the


board’s rejection of the non-binding intention, [Uponor] has received indications of interest from other parties,” said the company. � www.aliaxis.com � www.uponorgroup.com


Pipe acquisition boosts Simona results


Germany-based Simona says that sales and profits both reached record levels in 2022, due in part to higher sales prices – and the contribution of its new UK-based pipes subsidiary. Group revenue increased almost 41% to €712 million (US$784m), while profitability (EBIT) rose more than 6% to exceed €54m (US$60m). Sales in the EMEA region rose


nearly 30% compared to the previous year, while growth in the Americas rose 37%. In Asia-Pacific, business improved by nearly 17%, due to solid performance in the industrial and automotive businesses. The ‘infrastructure’ business line


increased revenue by more than 75%, www.pipeandprofile.com


to €122m (US$134m) thanks to sustained growth in demand for infrastructure applications such as water utilities and cable protection for power lines – and the inclusion of sales from Simona Peak Pipe Systems, which was acquired last year. This acquisition – and capacity expansions such as one at its plant in Jiangmen, China – saw employee numbers at Simona rise nearly 12% to 1,734. “We managed to offset spiralling costs – associated with energy and raw materials – by raising sales prices,” said Matthias Schönberg, CEO of Simona. “As a result, we increased revenue by more than 30% and EBIT by more than 6%.”


Preliminary results for 2023 show a


near-5% decline in both sales and profits for the first quarter of the year. Sales fell to €165m (US$181m) in the period, while EBIT dipped to just over €13m (US$14m). For 2023 as a whole, Simona


anticipates a revenue of €650-675m – which would represent a decline of up to 9%. The forecast takes into account a


reduction in sales prices (due to falling material costs) and lower demand in the EMEA region. The ongoing war in Ukraine tensions between the US and China may also affect business development, it said. � www.simona.de


May/June 2023 | PIPE & PROFILE EXTRUSION 5


IMAGE: ADS


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