Deceuninck’s global sales for the first half of 2017 increased 2.6 percent to €338.7 million ($401.6 million), mainly driven by strong business development in the U.S. and market growth in Central Europe.

Those positive factors were offset by challenging market conditions in Turkey and Russia and the absence of one-off project sales in Western Europe.

“We made good progress during the first half of 2017,” said Francis Van Eeckhout, Deceuninck’s CEO. “We realized strong growth in North America and Central Europe, while we navigated well through challenging market conditions in Turkey. Despite rising input prices and one-off costs related to the implementation of various strategic projects we managed to deliver solid results.”

In North America, sales increased by 15.2 percent to € 64.4 million ($76.36 million). Volumes increased by 7.5 percent (or more than 13 percent if corrected for the sale of the decking business in the first half of 2016) thanks to strong business development and positive market growth. Sales were affected by price increases driven by the automatic indexing of higher PVC resin prices and a more favorable product mix.

Sales in Western Europe decreased by 3.2 percent to € 91.7 million ($108.7 million). The reason was lower volumes due to the absence of 2016 one-off project sales. Higher sales in Spain and Italy and the new aluminum and ventilation business have been offset by lower sales in France.

In Central and Eastern Europe, sales increased by 6.2 percent to € 81.1 million ($96.2 million). Higher volumes in the Czech Republic, Poland and the Balkans, supported by overall market growth in these countries, have been partially offset by lower volumes in Russia  following a further decline in that market.

Sales in Turkey and emerging markets decreased 1.6 percent to € 101.5 million ($120.35 million), which is mainly explained by challenging market conditions in Turkey.

Deceuninck invested significantly (€ 71 million or $84.2 million over the last 12 months, twice the historical average) in innovation, capacity and further operational efficiency, which has been financed from operating cash flow and by optimizing working capital.  The move to the new Menemen plant in Turkey has been finalized, and a new extrusion facility in Colombia is being built. It’s expected to be operational by the fourth quarter of 2017.

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