NEWS


Aliaxis sees decline in 2023 sales and profits


Belgian pipe manufacturer Aliaxis reported decreased sales and profits in 2023. The company posted a turnover of €4.1 billion (US$4.5bn) in 2023, a fall of around 5% compared to the previous year. At the same time, net profit in 2023 fell nearly 13% to reach €324 million (US$354m). “Market conditions


continued to be challenging throughout 2023, with volumes down globally,” said Eric Olsen, CEO of Aliaxis. “We have seen significant declines in housing starts in most of our relevant markets – ranging from 6% in Canada and 8% in the US, up to 19% in France.” Reduced demand in the Americas led to a near-7% decline in sales. Perfor- mance in North America was profitable, through the ability to capture new market share. However, economic challenges hit


Olsen: “Market conditions continued to be challenging throughout 2023”


some Latin American markets – especially Chile, Peru and Colombia – which saw a sharp decline. In the EMEA region, sales


fell by nearly 6% due in part to a sharp decline in the UK building sector. Aliaxis acquired pressure pipe manufacturer Lareter in the period, which is now “fully integrated”. In Asia, sales rose by about 1%, but higher volumes were offset by


lower resin prices and strong competition in the first half of the year. The Pacific region saw a sales decline of nearly 6% – through a combination of poor weather and challeng- ing markets in the agricul- ture and infrastructure sectors.


During the period, Aliaxis made a number of acquisi- tions, including US-based Valencia Pipe Company in June 2023. This added two manufacturing plants and a distribution centre. The company anticipates


that market demand will be flat across the group in 2024. However, it also expects to gain market share in the US through recently added organic and external capacity, as well as increasing new product revenue from innovation, execution of its sustainabil- ity objectives, and the pursuit of its M&A pipeline. ❯ www.aliaxis.com


Trex sales remain flat in 2023


Sales at US-based plastic decking manufacturer Trex remained flat at around US$1.1 billion in 2023. This came on the back


of an 8% sales growth in Q4, reaching US$192 million for the quarter. Net profit for the quarter doubled to around US$22m, giving a full-year profit of US$205m – a rise of around 11%. “Fourth quarter results


represented a strong finish to the year,” said Bryan Fairbanks, president and CEO of Trex.


In the first quarter of


2024, Trex expects net sales of US$360m to 370m – an increase of around 50% on the equivalent period in 2023. In addition, it estimates full-year sales of up to US$1.235bn in 2024.


“New product develop- ment will remain a priority in 2024,” said Fairbanks. ❯ www.trex.com


Orbia reports 8% sales drop at Wavin


Orbia, the Mexico-headquartered chemicals company, reported reduced sales and profits in 2023. Overall sales fell 15% to around US$8.2 billion, with lower sales in poly- mer solutions, building and infrastruc- ture and connectivity businesses. Sales in pipes division Wavin fell 8% to US$2.7bn. At the same time, profitability also suffered – with operating profit down 27% to US$142m. It said this was due to lower prices and reduced demand in EMEA – though this was slightly offset by


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volume improvements in Latin Ameri- ca, Asia and North America. Orbia has two other extrusion-relat- ed businesses: US conduit maker Dura- Line and Israeli pipe irrigation com- pany Netafim. At Dura-Line, full year sales fell 18% to US$1,125m, while operating profit fell 13% to US$279m, due mainly to lower demand driven by higher interest rates. In Q4, sales fell 41% and profits 82%. Netafim’s sales fell by 2% for the


year, to around US$1bn, while profits fell by 32% to US$13m. In Q4, sales


actually rose by 9%, and the division turned a loss of around US$29m in 2022 to a profit of US$3m in 2023. This year, Orbia expects some


recovery in industrial and construction activity in certain regions late in the year, tied to an expected reduction in interest rates. “[In Wavin] we expect profitability


improvements from cost optimisation initiatives, overall growth in market share and continued product portfolio expansion,” said Orbia. ❯ www.orbia.com


Spring 2024 | PIPE & PROFILE EXTRUSION 5


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