trading update - first quarter 2011
Aalberts realises a good first quarter 2011
Aalberts Industries has made a good start in 2011. The order position has increased and with it the number of employees. Investment projects have been started at various places for the benefit of new products and production automation, and the capacity has been expanded at some places.
The increase in volume, visible during the previous quarter, has continued during the first quarter of 2011. New projects have been started with clients in different markets and at a number of places investments in production have been made for new client-oriented products, systems and processes.
The good trend seen during the second half of last year in the semiconductor and automotive industry continued. The same applies to the activities for the benefit of the turbine industry in North America. An upward trend in the precision engineering sector can be seen through the increased number of clients’ projects. Work is carrying on intensively in extending the product package for the medical market. The defence, metal & electrotechnical industry and energy markets are showing a stable picture.
Despite the fact that the markets remain challenging in a number of countries, the activities in Flow Control have also made a good start. The continual intensification of cross-selling and the introduction of additional products thereby also received much attention during the first quarter in various countries, through which the market share has grown. This added to the good result that was achieved.
The collaboration between the North American Flow Control companies shows a positive picture with improved profitability, accelerated further by Conbraco, which was taken over in July 2010. The markets in Eastern Europe, including Russia, are showing growth compared with last year; however, these are not yet back to the level of before the economic crisis. The picture in Western European markets is diverse. In some countries the market is challenging, in other countries, such as Germany and France, the market can be called reasonable to good. The markets in Southern Europe are still at a low level.
Taking into account the trend shown in the first quarter, the further increase in the order position, a more active market approach as well as a broad recovery in several markets, revenue and earnings per share are expected to increase throughout the whole of 2011, barring unforeseen circumstances.