Improvement in Result Van Leeuwen Pipe and Tube Group in 2010

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Apr 20, 2011, 04:00 ET

    ZWIJNDRECHT, Netherlands, April 20, 2011 /PRNewswire/ --
    - Increase in Volume of 16% Worldwide
    - International Network Expanded
    - Further Growth - Both Organic and Through Acquisitions - in 2011
    - Strong Solvency

The Van Leeuwen Pipe and Tube Group achieved a significant improvement in its result in 2010 compared with the previous year. Market recovery and a modest increase in market share led to an increase in volume of 16% worldwide. The company was able to profit from its global network of locations, stocks, services, and logistics, and it invested in various expansions in 2010.

The net result came out at EUR 7.8 million, an improvement of EUR 5.9 million compared with 2009. Solvency remained strong at 50%. The measures taken in 2009 to cut costs and reduce stock levels enabled the company to make a good start, despite the uncertain market conditions at the beginning of 2010. Customers and suppliers around the world had made substantial reductions in their stock levels. As a stock-keeping trading company, Van Leeuwen was able to respond well to the market demands through its global network of stocks, logistics and services.

Industry and energy

As an international company trading in steel pipes and pipe products, Van Leeuwen targets both the energy market and the industrial market. A recovery in volumes could be seen in the European industrial market in particular, for instance among machinery manufacturers. Global activities within the energy market were at a lower level in 2010 than in 2009. However, there was a global recovery in investments at the end of the year, and a significant increase in the number of requests for projects in the Middle East, Asia, and Australia.

Growth and initiatives

The company invested in locations and new product groups in 2010 to enable it to serve new customers and markets. For example, it acquired the Fluid Power division of Anbuma, a Belgian stock-keeping distributor operating in France, Belgium, and the Netherlands. The Offshore Structurals international business unit was set up to provide customers around the world with complete steel packages for the offshore/oil and gas segment. Van Leeuwen set up a new stock location in Scotland, opened a new sales branch in Slovakia and took the first steps towards serving the local Polish market by opening a stock location in the south of Poland. A branch was opened in Saudi Arabia to be able to supply large petrochemical projects locally. Van Leeuwen further extended its network of offices in Asia with a new sales office in Ho Chi Minh, Vietnam. Furthermore, the stock location in Queensland, Australia, was extended in 2010. The total number of employees grew from 1005 at the end of 2009 to 1030 at the end of 2010.

Outlook

The market outlook for 2011 is definitely better than last year. The first quarter showed a clear increase in demand in both the energy market and the industrial market. Van Leeuwen has a sufficiently strong financial base to enable it to focus in the years ahead on extending its network, materials, and product groups, including through acquisitions.

Peter Rietberg, Chairman of the Board of Directors: "Van Leeuwen's strength lies in its global network of branches, which enables us to give customers local access to our specialist knowledge and our range of products at as many locations as possible. We are strengthening this network by adding new branches and expanding existing facilities. Our cash position and solvency offer ample opportunity for financing this growth. We are also investing continually in our employees as they constitute our key link with our customers."

Additional financial information

The Van Leeuwen Pipe and Tube Group's consolidated sales were EUR 477 million, an increase of 4% compared with the previous financial year. The operating result, adjusted for non-recurring income, was EUR 8.7 million in 2010, an improvement of about EUR 2.3 million on the previous year. Interest charges remained low, partly thanks to the strong cash position. The result from the participating interests increased by more than EUR 5 million. There was a substantial increase in the net result, which came out at EUR 7.8 million (2009: EUR 1.9 million). The company was able to maintain its strong cash position and solid balance sheet in 2010. This cash position enables the company to act quickly when encountering acquisition opportunities. Group equity increased from EUR 146 million to EUR 157 million, while solvency remained high at 50%.

Van Leeuwen Pipe and Tube Group

The Van Leeuwen Pipe and Tube Group is an international trading company specializing in steel pipes, pipe components and valves. The company is active in virtually all industrial sectors. The company was founded in 1924. The Group has more than forty branches spread throughout Europe, the Middle East, Asia, Australia, and North America.

http://www.vanleeuwen.com

SOURCE Van Leeuwen Pipe and Tube Group