Gelsenkirchen, Germany - In the first nine months of the year Masterflex SE, the global specialist in high-tech plastic hoses, generated revenue of Euro 42.0 million ($53.5 million). This represents a rise of 4.8 percent, with operating results (earnings) of Euro 5.9 million.
Polyurethane hose expert Masterflex said the corresponding gross margin of 14.1% is in line with the company's long-term route to growth.
"Our business in sophisticated connective hose systems is operating at unprecedented levels. We had anticipated a stronger third quarter, but the European market is still suffering from the current sovereign debt crisis" said ceo Dr Andreas Bastin.
In principle, Masterflex said, it is standing by its annual forecast for 2012, "although it is no longer possible to rule out annual sales falling slightly short for 2012 compared with the anticipated and ambitious forecast for sales growth of Euro 57 to Euro 58 million."
Profitability of the business remains high despite the up-front costs required for internationalisation. Bastin confirmed: "We are looking at an EBIT margin in the region of 14 percent, even when taking into account a slight shortfall in our sales targets."
Bastin pointed out that the company's internationalisation of "continues apace, with the focus currently on Asia. In China, assembly capacities are currently being established and the first significant new business has already been generated. Bastin said: "In the medium term, business in Asia and America should flow alongside the traditional
ainstay business in Europe so it can develop and become more independent from individual regions and sectors."