FRIEDRICHSHAFEN, GERMANY (Oct. 19, 2:45 p.m. ET) — German injection molding machine group Arburg says its turnover in 2011 will exceed its 2007 record of 409 million euros.
Speaking at a news conference at the Fakuma fair in Friedrichshafen, Arburg managing director Michael Hehl said 2010 consolidated turnover for the Hehl Group (including Arburg and other smaller subsidiaries) was 378 million euros. He would not give a precise sales forecast for 2011 or 2012.
However, Arburg already has a strong order book for 2012, he said, adding there is “no chance” 2012 will be a bad year.
Hehl said Arburg had above-average orders in the first quarter of 2011, and since May sales have stabilised at a high level.
Despite the economic concerns arising from the euro crisis, Arburg says it has “very healthy” order levels in Western, Central and Southern Europe. Orders from Greece have fallen since May but some companies in the struggling Greek economy are still buying machines.
Eastern Europe (particularly Russia) continues to be a difficult market, said Helmut Heinson, managing director of sales, due to a range of political, economic and societal factors.
In the Americas, Arburg is doing good business in the USA, Mexico and Brazil.
Chinese customers are increasingly willing to pay for high quality machines, said Heinson. Countries in the Asean region are showing record demand for Arburg machines.
Heinson lamented that at a time when demand in the injection molding machine market is strong, many of Arburg's competitors were still offering large discounts to list prices.
He said: “If this is not the time to return to normal pricing, I don't know what is.”
Arburg made the decision to slow down rebate offers earlier this year. In contrast, Heinson said he had heard one unnamed competitor had sold two machines to a customer for the equivalent list price of just one machine.