Gelsenkirchen, Germany - Polyurethane specialist Masterflex AG said its strong focus on earnings growth is reflected in all of its key indicators so far in 2008, and in a first quarter results statement new ceo Dr Andreas Bastin stressed the group's future intention to focus strongly on the core business of high-tech PU hoses.
In the first quarter of the year, the hose maker's consolidated revenue increased by 3.3 percent year-on-year to Euro 33.5 million ($52 million). Consolidated earnings (EBITDA) rose by 6.9 percent to Euro 4.4 million, while EBIT improved by 8.1 percent to Euro 3.6 million.
Masterflex is "well on track to achieve its forecasts for the year as a whole," the company said, in a 15 May results announcement.
In its individual businesses, an increased focus on High-Tech Hose Systems was successful, "with encouraging growth in incoming orders," the group said, while successful reorganisation in its Medical Technology business gave significant improvement in profitability. Masterflex expressed confidence that its Advanced Material Design unit will achieve its targets by the end of the year, despite a drop in earnings in Q1.
In 2008, Masterflex said, it will focus its strategy on sustainable, long-term corporate development, particularly with regard to the core hose business unit.
According to Bastin, "Our aim is to maintain and, where possible, increase our productivity and profitability, on a long-term basis," and he pointed out initial progress at Masterflex from optimising organisational structures and workflow.
Masterflex is still forecasting consolidated revenue growth of 10-15 percent and consolidated EBIT growth of 6-12 percent for the full year. "Over the next few years, we intend to focus on expanding all of our activities in and around our core competency - the production of innovative high-tech hose systems. Accordingly, our investments and acquisitions will be oriented towards achieving this aim," Bastin commented.
As well as a wide range of PU hoses, Masterflex makes technical medical components from special plastics - infusion hoses, catheters, multi-lumen tubing etc. Its mobile office unit sells and distributes system cases and bags for carrying laptop computers and similar devices, while advanced material design covers metal surface refining.