Gelsenkirchen, Germany - Masterflex AG has reported growth in its core High-Tech Hose Systems business unit for the third quarter (Q3) of 2008 but found its non-core activities have struggled, forcing the company to revise its financial forecast for 2008.
Revenue for the core segment increased by 7.8 percent to Euro 34.7 million ($44.5 million), operating earnings improved by 8.2 percent to Euro 7.0 million with the segment as a whole accounting for 73 percent of consolidate earnings development, the company said 7 Nov. Masterflex also said that the segment has enjoyed strong growth rates in the US.
The company's non-core activities such as its Advanced Material Design segment "were considerably more susceptible to periods of economic weakness," Masterflex said.
"The financial crisis is likely to have a further adverse affect on the other business units. As a result, the board of Masterflex AG now expects operating EBIT for the 2008 financial year as a whole to decline to around Euro 12-13 million," the company said in its statement. Masterflex has previously predicted growth of 6-12 percent.
Masterflex ceo Andreas Bastin emphasised that the company has a clear roadmap for the future to focus on it core competencies and continue the systematic restructuring of the company.