September 9, 2016
The remanufacturer revealed that turnover for the first half of the year fell €6.6 million ($7.4 million) from last year.
Reuters reported the results and Turbon also explained them (German), with the consolidated turnover for the first half of 2016 €50.3 million ($56.7 million), down from €56.9 million ($64.1 million) last year. Earnings before interest and taxes (EBIT) meanwhile reached €3.9 million ($4.3 million), an increase on 2015’s €3.8 million ($4.2 million), while consolidated income also grew from €2.4 million ($2.7 million) last year to €2.5 million ($2.8 million) this year.
As a consequence of the results, Turbon expects a “reduced total turnover of not more than” €101 million ($113 million) and a profit before tax of €6.6 million. The remanufacturer stated that total sales in the first half of the year continued to be “weak”, and that “although we were set” on dealing with a “stagnating market”, sales are “behind our plans”. In particular, the US market’s sales losses were “significantly higher than planned”, so targets were “therefore not [reached]”.
Turbon added that “due to the already initiated cost-cutting measures and higher other income”, results had “improved slightly” despite “the drop in sales”, but for the rest of the year it sees “continuing difficult market conditions”, with the aim of achieving its revised and “reduced targets” hinging on an “urgent task in the weak US business to achieve a sustainable turnaround”. The company also planning “further rationalisation of our structure in the US” for “further cost reduction”.
Turbon added that “despite the difficult market conditions” and the challenge they pose in achieving “the traditional dealer business”, the remanufacturer will continue with “the strategic realignment of our corporate group”. This will include participating in “two enterprises operating in Europe”, including one with a “focus in the field” of MPS, and the other in the production of “labour-intensive products in a growing market, where we are not active at this time”, with conclusions expected in “the current year […] in both cases”.
The company reported in March on less positive yearly results, which included small falls in sales and profit, and saw it adjust 2016 sales targets down. In October last year, the remanufacturer acquired Embatex, in a purchase which it claimed at the time would bring Turbon’s group revenue to around €110 million ($121 million) for the full year. The Recycler also reported last August on a first-half sales increase for 2015 of 6.6 percent to €56.8 million ($63.2 million), a growth of €3.5 million ($3.8 million) from the “comparable period of the previous year”.
Categories : City News