Weak U.S. Market Contributes to Decline in 4th Quarter 2006 Deceuninck Sales

The Deceuninck Group, a Belgium-based extruder of vinyl window profiles, reports that weak markets in the U.S. contributed to an overall sales decline of 1.5 percent for the company in the fourth quarter of 2006. Sales in the U.S. were down 20 percent, but those losses were largely offset by growth in Eastern Europe and the company's Twinson wood composite product used for decking and external wall cladding, the company states.

For 2006 as a whole, sales for the entire Deceuninck Group increased 4.6 percent to EUR 662.5 million ($857 million). The supplier reports the biggest gains came in Russia, which saw a 60 percent sales increase. Poland was up 20 percent.

Even some mature markets enjoyed gains, the company points out. For the first time in years, the German window market grew, increasing 10 percent for the year as a whole and more than 30 percent in the fourth quarter. The strongly improved market situation in Germany is attributed to government initiatives to promote investments in energy-efficient building materials.

DECEUNINCK OFFICIALS POINT TO STRONG GROWTH IN BELGIUM AND FRANCE
Sales volumes also increased more than 18 percent in Turkey, the company notes. Those increases did not translate into as big an increase in Deceuninck's numbers, however, because of the devaluation of the Turkish lira in the spring.

For 2007, Deceuninck reports it is focusing on growth markets and innovations. It is expanding profile extrusion operations in both Turkey and Russia, and increasing capacity for its wood composite products in Belgium.

"The black pages of 2006 have been turned," says CEO Clement De Meersman.

"Deceuninck now holds the aces and the potential to again get on track with its business plan 2009. As a result, turnover growth of 5 percent to 10 percent is expected for 2007."