Brussels -- Recticel a Belgium-based polyurethane foam maker saw sales and profitability fall in 2013 driven by disposals and fines from the European Commission for anti-competitive activity.
On a consolidated basis sales for the group fell by 5.6% from EUR1.04bn to Euro 977m and earnings before interest tax depreciation and amortisation (EBITDA) fell from EUR 66m to 13.6m hit by a cartel fine from the European Commission, restructuring charges and legal fees.
On a combined basis sales were EUR 1.26bn in 2013 compared with EUR 1.32bnin 2012, EBITDA figures were EUR 27.7m in 2013 compared with EUR 78.2m in 2012.
Consolidated sales fell 4.6% due to the disposal of Ingenieria de Poliurethano Flexible (IPF) of Spain, exchange rate differences accounted for a further -1.0% of the decline in sales, said the firm in a press release.
Recticel compiled its 2013 results according to two slightly different accounting standards. The following figures are given on the same basis as previous years.
Sales by Segment break down as follows
| Recticel Sector Perfomance 2013 (EUR m) | |||
| Sales | % change | ||
| Product | 2012 | 2013 | |
| Flex Foam | 588.3 | 583.4 | -0.8 |
| Bedding | 276.5 | 283 | 2.3 |
| Insulation | 220.7 | 220 | -0.3 |
| Automotive | 289.7 | 258.4 | -10.8 |
| Eliminations | 55.7 | 86.2 | 54.8 |
| Totals | 1319.5 | 1258.6 | -4.6 |
| Source: Recticel | |||
The company said that although slightly improving, the economic environment in Europe, which accounts for accounting for 94% of total net sales is volatile and difficult to predict. The persisting low consumer confidence weighed on the Group’s end-use markets, which are all geared towards slow moving consumer goods and investment goods. The first signs of progressive stabilization became however noticeable during 3Q 2013 and were confirmed in 4Q 2013.
Sales in Flexible Foams and Insulation were broadly stable versus last year. The weak European automotive market led to a sales fall of -10.8% in the sector, the firm said. It added that there was a run-out of programs in US and Europe. Third party Bedding sales were 5.5% lower than 2012 on a like-for-like basis.
