Brussels – Recticel saw sales up 11.9% in the third quarter of 2017, to EUR 356m as the firm passed on higher prices and benefited from greater automotive demand.
Recticel grows revenue in q3
Olivier Chapelle, CEO said his firm had faced: 'very challenging raw material supply conditions' adding that prices have ‘reached new record levels in the third quarter… MDI supply remained insufficient to cover market demand.' This has limited his firm’s ability to 'fulfil the demand from customers of rigid insulation panels; no substantial improvement is expected in the short-term.'
His commercial department has ‘continued to take the appropriate measures to safeguard profit margins.'
Chapelle added that following the supply of contaminated TDI by BASF his firm ‘reserved its rights and expects to recover in due course all damage from the supplier or insurance companies.’
Total sales for the third quarter of 2017 were EUR 356m compared with EUR 318 m in the 2016 quarter. Sales in flexible foam were up 3.2% at EUR 149m, insulation was up 13.8% at EUR 72.4m and automotive sales at EUR 84.1m in the third quarter of 2017 were up 22% compared with the 2016 quarter. Sales in the firm’s bedding segment fell by 6.9% to just under EUR 65m in the third quarter of 2017.