RadiciGroup Plastics reports 2011 results.
After the excellent results achieved in 2010 (consolidated sales of EUR 235 million against EUR 132 million in 2009), RadiciGroup Plastics continued its upward trend in 2011. Despite a downturn that affected, albeit to a varying degree, all areas of the world economy, the plastics producer closed 2011 with consolidated sales of EUR 259 million, a 10% increase over the prior financial year. The positive trend of 2011 continued during the first quarter of 2012.
After the excellent results achieved in 2010 (consolidated sales of EUR 235 million against EUR 132 million in 2009), RadiciGroup Plastics continued its upward trend in 2011. Despite a downturn that affected, albeit to a varying degree, all areas of the world economy, the plastics producer closed 2011 with consolidated sales of EUR 259 million, a 10% increase over the prior financial year. The positive trend of 2011 continued during the first quarter of 2012.
The engine of RadiciGroup Plastics' growth during the past year was the automotive sector, which was responsible for the more than satisfactory results obtained by the Group (US, China, and Germany did particularly well in the auto market).
58% of total sales were in Europe, broken down into Italy (17%) and other European countries (41%). Sales revenue in non-European countries was 42% of the total.
The development plan for new products with improved sustainability, performance and quality is in full swing.
Innovation has focused primarily on the Radilon® product range for the automotive sector: PA6, PA66 and PA610 engineering plastics, whose trademarks are innovation, reduced environmental impact and high performance.
“In 2011 we reached the milestone of thirty years in business," said Luigi Gerolla, managing director of RadiciGroup Plastics and RadiciGroup Chemicals, “and the year was marked by very good results for RadiciGroup Plastics. The key to our growth of 10% over 2010 was the positive trend in the automotive market. This segment is extremely important to us, as it comprises 60% of our turnover."
"The first quarter of 2012 ended on an upnote," Mr. Gerolla continued, "in line with the results of first quarter 2011. We're cautious, as to be expected. The prospects for the international economy are uncertain, and we are going through a phase where many signs – mainly the slowdown in the Asiatic countries – are hard to decipher. But we are optimistic. During our thirty years in business, our global manufacturing strategy of following international customers and simultaneously developing local markets has been a winning one. This action plan has allowed us to build and now rely on a solid, truly global organization. We are recognized as a highly vertically integrated manufacturer, with a production base that effectively covers not only the European market but also the global one. And our worldwide presence is now our key competitive advantage. In 2012 we expect to match last year's growth."
Equally upbeat were the comments of Cesare Clausi, European business manager of RadiciGroup Plastics and Danilo Micheletti, COO of RadiciGroup Plastics North America, South America and China.
"Our performance in Europe, was better than good," Mr. Clausi stated. "Thanks to our global structure, we can deliver our international customers high-quality products in distant markets, quickly and with the lowest possible supply chain costs. For instance, in 2011 we earned a Top Supplier Award from Robert Bosch – number one in the world automotive industry – for our quality performance and service during the past two years. Overall, our sector is still growing at a good clip. In the European market, the growth prospects are not so much dependent on the gradual recovery of pre-crisis consumption, but on the opportunity to replace high-environmental-impact materials with reduced-footprint engineering plastics guaranteeing the same performance. Research aimed at lighter and more resistant materials, the use of production processes that improve the energy balance and a global presence to cut unnecessary transport costs: these are the key factors you need to stay competitive in both the European and world markets. Our research and development, technical marketing and production teams have been focused in this direction for a long time now."
"Pressure on margins and a downward revision of the expected growth rate for the global economy," Mr. Clausi concluded, "make our 2012 forecast more uncertain. In the short term, for the rest of the first half year we expect a trend in line with the first quarter."
"As for the United States," Mr. Micheletti said, "2011 was a really positive year. We started reaping the benefits of our MDE acquisition, positioning ourselves in market segments – electrical/electronics, in particular – where we had never ventured before. At the same time we have been able to better serve European customers that have production facilities in the USA. In the automotive sector, we have strengthened our communications with the carmakers, building direct relationships to lay the groundwork for long-term development collaboration. During the last few years, thanks to the innovation factor, we have transformed our approach from being a simple follower to a leader able to offer the market decidedly innovative solutions. Thus, despite our concerns about the market's holding up during the second half of the year, we expect good results for 2012 as a whole."
"In Brazil, on the other hand," Mr. Micheletti continued, "although we managed to maintain our market share, we faced a difficult 2011. We found ourselves in a weak economy that put a damper on our growth prospects. Brazil's GDP expanded by only 2.7%, in other words, less than half of the 7.5% recorded in 2010. What's more, the entry of new competitors in our target market didn't help. We predict that the first half will be just as painful, but we are optimistic about the second part of the year. Given that the Brazilian government has taken steps to control inflation and now stimulate the slowing economy, an upturn is expected in the second half. The major sports events planned for the future, the World Cup in 2014 and the Rio Olympics in 2016, will surely give the market new momentum."
"There's a very different scenario in China where we experienced growth of over 20% compared to 2010," Mr. Micheletti concluded. "Indeed, we expect the growth rate to remain steady in 2012. In the Chinese market, particularly in the automotive segment, we are also benefiting from the expansion of Radici Plastics USA. We are collaborating on projects conceived in the US that take advantage of over 250 American automotive source approvals. Our product development network is backed by our Italian research and development team, and the raw materials needed for our production processes are directly available from other RadiciGroup companies. Generally speaking, we expect positive results from our three big markets – the USA, Brazil and China – over the next few years."
For further information, please read the Press Release.
The engine of RadiciGroup Plastics' growth during the past year was the automotive sector, which was responsible for the more than satisfactory results obtained by the Group (US, China, and Germany did particularly well in the auto market).
58% of total sales were in Europe, broken down into Italy (17%) and other European countries (41%). Sales revenue in non-European countries was 42% of the total.
The development plan for new products with improved sustainability, performance and quality is in full swing.
Innovation has focused primarily on the Radilon® product range for the automotive sector: PA6, PA66 and PA610 engineering plastics, whose trademarks are innovation, reduced environmental impact and high performance.
“In 2011 we reached the milestone of thirty years in business," said Luigi Gerolla, managing director of RadiciGroup Plastics and RadiciGroup Chemicals, “and the year was marked by very good results for RadiciGroup Plastics. The key to our growth of 10% over 2010 was the positive trend in the automotive market. This segment is extremely important to us, as it comprises 60% of our turnover."
"The first quarter of 2012 ended on an upnote," Mr. Gerolla continued, "in line with the results of first quarter 2011. We're cautious, as to be expected. The prospects for the international economy are uncertain, and we are going through a phase where many signs – mainly the slowdown in the Asiatic countries – are hard to decipher. But we are optimistic. During our thirty years in business, our global manufacturing strategy of following international customers and simultaneously developing local markets has been a winning one. This action plan has allowed us to build and now rely on a solid, truly global organization. We are recognized as a highly vertically integrated manufacturer, with a production base that effectively covers not only the European market but also the global one. And our worldwide presence is now our key competitive advantage. In 2012 we expect to match last year's growth."
Equally upbeat were the comments of Cesare Clausi, European business manager of RadiciGroup Plastics and Danilo Micheletti, COO of RadiciGroup Plastics North America, South America and China.
"Our performance in Europe, was better than good," Mr. Clausi stated. "Thanks to our global structure, we can deliver our international customers high-quality products in distant markets, quickly and with the lowest possible supply chain costs. For instance, in 2011 we earned a Top Supplier Award from Robert Bosch – number one in the world automotive industry – for our quality performance and service during the past two years. Overall, our sector is still growing at a good clip. In the European market, the growth prospects are not so much dependent on the gradual recovery of pre-crisis consumption, but on the opportunity to replace high-environmental-impact materials with reduced-footprint engineering plastics guaranteeing the same performance. Research aimed at lighter and more resistant materials, the use of production processes that improve the energy balance and a global presence to cut unnecessary transport costs: these are the key factors you need to stay competitive in both the European and world markets. Our research and development, technical marketing and production teams have been focused in this direction for a long time now."
"Pressure on margins and a downward revision of the expected growth rate for the global economy," Mr. Clausi concluded, "make our 2012 forecast more uncertain. In the short term, for the rest of the first half year we expect a trend in line with the first quarter."
"As for the United States," Mr. Micheletti said, "2011 was a really positive year. We started reaping the benefits of our MDE acquisition, positioning ourselves in market segments – electrical/electronics, in particular – where we had never ventured before. At the same time we have been able to better serve European customers that have production facilities in the USA. In the automotive sector, we have strengthened our communications with the carmakers, building direct relationships to lay the groundwork for long-term development collaboration. During the last few years, thanks to the innovation factor, we have transformed our approach from being a simple follower to a leader able to offer the market decidedly innovative solutions. Thus, despite our concerns about the market's holding up during the second half of the year, we expect good results for 2012 as a whole."
"In Brazil, on the other hand," Mr. Micheletti continued, "although we managed to maintain our market share, we faced a difficult 2011. We found ourselves in a weak economy that put a damper on our growth prospects. Brazil's GDP expanded by only 2.7%, in other words, less than half of the 7.5% recorded in 2010. What's more, the entry of new competitors in our target market didn't help. We predict that the first half will be just as painful, but we are optimistic about the second part of the year. Given that the Brazilian government has taken steps to control inflation and now stimulate the slowing economy, an upturn is expected in the second half. The major sports events planned for the future, the World Cup in 2014 and the Rio Olympics in 2016, will surely give the market new momentum."
"There's a very different scenario in China where we experienced growth of over 20% compared to 2010," Mr. Micheletti concluded. "Indeed, we expect the growth rate to remain steady in 2012. In the Chinese market, particularly in the automotive segment, we are also benefiting from the expansion of Radici Plastics USA. We are collaborating on projects conceived in the US that take advantage of over 250 American automotive source approvals. Our product development network is backed by our Italian research and development team, and the raw materials needed for our production processes are directly available from other RadiciGroup companies. Generally speaking, we expect positive results from our three big markets – the USA, Brazil and China – over the next few years."
For further information, please read the Press Release.
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