HOOGLEDE, BELGIUM (July 15, 1:15 p.m. ET) — Belgian PVC window frame maker Deceuninck NV says it now expects its top and bottom line to be stable for the year, after sales fell 2.4 percent in the second quarter. The company had previously predicted sales and profit growth.
The company said it took into account continuing PVC and additive cost increases, the U.S. volume decline and unfavorable exchange rates in changing its outlook.
In the second quarter of this year, consolidated sales decreased 2.4 percent to 152.3 million euros. Favorable sales volumes in Benelux, France, Germany and Turkey could not compensate for weak demand in the United States and central and eastern Europe.
The cost of raw materials continued to rise in May and by the end of June, the PVC resin price index was 9 percent higher than the end of 2010, says the company.
Deceuninck's consolidated sales for the first half-year 2011 were 268.9 million euros, a year-on-year increase of 1.3 percent. U.S. sales fell 15.1 percent to 27.3 million euros.