4-Traders
Low aluminium prices in global markets affect Groupa K's revenue
Edited by : AL CIRCLE
2 min read
The Management Board of Grupa K S.A., as scheduled in the corporate events programme, has published preliminary forecasts concerning the results for the second quarter of 2013.
In the second quarter of the year, the development of the economic situation in Poland continued to be uncertain. However, at the same time, the signs of the demand increase on certain export markets are becoming more and more apparent. Therefore, as assessed by the Management Board, in the context of such market environment, the sale of the business segments of the Capital Group reached a satisfactory level.
As estimated by the Company, consolidated sales revenue will amount to 375 million PLN, thus will be lower by only 3% than the previous year's figures. The Company feels that one of the significant reasons for the decrease comprises lower quotations of aluminium prices on global markets; aluminium is the basic raw material used in the production of aluminium profiles.
In the second quarter, only the flexible packaging segment could boast an increase in sales revenue (by ca. +7%). The sale recorded by other segments decreased as compared to the corresponding period in the previous year and the drop ranged from ca. 3% in the case of the aluminium systems segment, ca. 4% for the extruded products segment (it is in this segment where the 7% decline in aluminium prices affected the revenue to the greatest extent), ca. 7% in the building accessories segment and ca. 40% in the Building Services Segment.
EBITDA (operating profit plus depreciation) will amount to ca. 52 million PLN as compared to 62.7 million PLN in the previous year. In the second quarter of 2013, the operating margin in the extruded products segment increased only slightly; however, in this segment, one can still observe the negative impact of high premiums paid to suppliers of aluminium and aluminium billets, who, in this way, compensate for lower prices of aluminium on global exchanges. The persisting difficult situation in the building industry, which adversely affects the results of the building services segment, is another factor negative for the level of EBITDA.
In the second quarter of the year, the development of the economic situation in Poland continued to be uncertain. However, at the same time, the signs of the demand increase on certain export markets are becoming more and more apparent. Therefore, as assessed by the Management Board, in the context of such market environment, the sale of the business segments of the Capital Group reached a satisfactory level.
As estimated by the Company, consolidated sales revenue will amount to 375 million PLN, thus will be lower by only 3% than the previous year's figures. The Company feels that one of the significant reasons for the decrease comprises lower quotations of aluminium prices on global markets; aluminium is the basic raw material used in the production of aluminium profiles.
In the second quarter, only the flexible packaging segment could boast an increase in sales revenue (by ca. +7%). The sale recorded by other segments decreased as compared to the corresponding period in the previous year and the drop ranged from ca. 3% in the case of the aluminium systems segment, ca. 4% for the extruded products segment (it is in this segment where the 7% decline in aluminium prices affected the revenue to the greatest extent), ca. 7% in the building accessories segment and ca. 40% in the Building Services Segment.
EBITDA (operating profit plus depreciation) will amount to ca. 52 million PLN as compared to 62.7 million PLN in the previous year. In the second quarter of 2013, the operating margin in the extruded products segment increased only slightly; however, in this segment, one can still observe the negative impact of high premiums paid to suppliers of aluminium and aluminium billets, who, in this way, compensate for lower prices of aluminium on global exchanges. The persisting difficult situation in the building industry, which adversely affects the results of the building services segment, is another factor negative for the level of EBITDA.
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