Trading update 3rd quarter 2018
- Combined 3Q sales decrease of -4.1%
- Combined year-to-date 9M sales growth of +1.3%, including a -1.0% adverse currency impact
- Combined net financial debt: EUR 117.9 million (30 June 2018: EUR 138.7 million; 30 September 2017: EUR 151.6 million)
Olivier Chapelle (CEO): “The markets in which we operate, with the exception of Insulation, have deteriorated during the 3rd quarter of 2018, leading to a 3rd quarter sales decrease of -4.1%.
Comfort foam and bedding volumes, influenced by continued slow retail traffic, have deteriorated during the 3rd quarter, after an already soft 1st half-year. In the automotive sector, certain OEM’s are temporarily reducing their production volumes in the context of trade tensions and new emission regulations. On the contrary, insulation volumes have continued to strengthen in a context of declining selling prices as a consequence of decreasing raw material costs (MDI).
Cash flow generation remains strong, leading to a further reduction of our net financial debt.
The expansion plans in our Insulation division are on track: our new plant in Finland has now started production, and we are looking at external growth opportunities for the division.
We confirm that the processes engaged during the 1st half-year of 2018 to divest our Automotive divisions continue to progress according to plan."
Given the recent trends and in view of the volatile economic, financial and geopolitical environment, the Group expects its full year 2018 combined REBITDA to be in line with 2017 combined REBITDA.