Skip to main content
Sister Publication Links
  • Middle East Foam & Polyurethane
  • UTECH Asia/PU China
  • UTECH Europe
  • UTECH Las Americas
Subscribe
  • My Account
  • Login
  • Subscribe
  • Ukraine
  • News
    • Asia
    • Americas
    • Europe
    • M & A
    • Financial results
    • Automotive
  • Data
  • Information
    • Country Overview
    • Market Sector overviews
    • Technical articles
    • Company profiles and strategies
  • Events
    • Exhibitions
    • Conferences
    • Webinars / Livestreams
    • Become a Speaker
    • UTECH Europe 2021
  • Advertise
  • Contact Us
  • Issues
  • Subscribe
MENU
Breadcrumb
  1. Home
  2. News
March 20, 2019 12:00 AM

Challenging operating environment for FoamPartner in 2018

Simon Robinson
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print

    Zurich, Switzerland — Conzzeta, which owns flexible foamer FoamPartner, had sales of CHF 1.78bn in 2018, up 20.2% on the previous financial year.

    Michael Willome, anticipates significant progress. Credit: Conzzeta

    EBIT across the business rose by 19.2%, and reached CHF 146.8m in the 2018 financial year.

    The company's chemical specialties business, which includes FoamParter, sales rose 36.2% between 2017 and 2018. They reached CHF 383m in the 2018 financial year. This compares with CHF 281.3m in the previous year.

    Although sales were up, EBIT across in the division fell  by 76.6% to CHF 5.8m in 2018.

    The division was restructured significantly in 2017 when Otto Bock was purchased and Conzzeta sold its 51% stake in its US joint venture with Woodbridge. The one-off gain from the joint venture sale inflated earnings in 2017 by CHF 8.8m.

    Conzzeta said 2018 was challenging for FoamPartner. The business spent CHF 5.5m implementing a new regional management structure, developing regional business models and closing a site in the US.

    High raw materials prices in 2018 hit the numbers. At the same time declining European automotive production, through tougher emission tests reduced slowed business. China's economic slowdown and the trade dispute between China and the US also hit performance.

    FoamPartner plans 'extensive measures to improve operational efficiency… over the next 24 months to improve margins.' Its goal is a 10% EBIT margin over the mid-term.

    Moreover, sites will be consolidated in the US, and the company will focus more on specialities there in 2019. The same specialties focus will drive the Chinese business, and there will be an attempt to improve quality and yield there. In Europe, the business will examine its plant locations and strengthen sales.

    In addition, the business will work on ERP and CRM tools, and increasingly digitise foaming, order management and logistics. It aims to develop more durable sponges, sealing products based on ether technology and a new prepolymer technology for automotive rolls.

    'Thanks also to the strategic measures and investments made, we see opportunities to further improve profitability. We anticipate significant progress particularly in chemical specialties,' said Michael Willome, Conzzeta Group's CEO.

    Currency conversion: XE.com.

    Conzzeta Numbers 2018 (CHF m)
    Group 2018 2017 Change %
    Net Sales 1782 1483 20.2
    EBIT 146.8 123.2 19.2
    Margin % 8.2 8.3
    Chemical Specialties
    Sales 383 281.3 36.15
    EBIT 5.8 24.8 -76.61
    Margin % 1.5 8.8
    Source: Conzzeta
    Recommended for You
    Pearl Polyurethane and Covestro cooperate on climate-neutral MDI
    Pearl Polyurethane and Covestro cooperate on climate-neutral MDI
    China moves to meet HCFC-141b phase out pledge
    China moves to meet HCFC-141b phase out pledge
    Record half at Kingspan, but orders start to dry up
    Record half at Kingspan, but orders start to dry up
    Latest Issue
    April/May 2022 issue
    Click HERE for Free Download
    View All Archives
    Get our newsletters

    Breaking news and in-depth coverage of essential topics delivered straight to your inbox.

    Subscribe today

    Register to access our archive of leading information on the polyurethanes industry.

    Subscribe now
    Connect with Us
    • Twitter
    • LinkedIn
    • Facebook
    • Youtube

    Follow us on social media for the latest polyurethanes industry news and event updates.

    Logo
    Contact Us

    Crain Communications
    11, Ironmonger Lane
    London
    EC2V 8EY
    United Kingdom

    Editorial
    Phone +44 (0) 20 3287 5935
    Email click to send

    Customer Service
    Phone +1 313 446 0450
    Email click to send

    Resources
    • Advertise with Us
    • Media Kit
    • Staff
    • Careers
    • Ad Choices Ad Choices
    • Sitemap
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2022. Crain Communications, Inc. All Rights Reserved.
    • Ukraine
    • News
      • Asia
      • Americas
      • Europe
      • M & A
      • Financial results
      • Automotive
    • Data
    • Information
      • Country Overview
      • Market Sector overviews
      • Technical articles
      • Company profiles and strategies
    • Events
      • Exhibitions
      • Conferences
      • Webinars / Livestreams
      • Become a Speaker
      • UTECH Europe 2021
    • Advertise
    • Contact Us
    • Issues
    • Subscribe