Uponor financial statements 2009

24/02/2010

Uponor’s profitability improved in declining markets

The year 2009 turned out to be a difficult one, with the decline in construction continuing from the previous year. Demand in the construction markets throughout Uponor's main markets reached a historical low, except for Germany, where the markets also weakened but remained at a reasonable level.

As a result, Uponor's net sales from continuing operations fell to EUR 734.1 million, a fall of 22.7% year on year. Despite the decreased net sales, the gross profit margin improved from the previous year.

President and CEO Jyri Luomakoski commented on the performance: “The year 2009 was a challenging time for all of us due to construction activity slowing down and the demand for our products and services declining. Thus, Uponor’s main focus was to manage costs, maintain a steady cash flow and improve our efficiency, which yielded some good results.”

In 2009, all of Uponor’s major end markets – residential new building, public and commercial construction, and infrastructure solutions - were characterised by low activity levels. An increase in renovation and modernisation projects was seen in countries where recovery initiatives were targeted at consumers. This stimulated demand for certain product groups.

Uponor carried out savings, cost-efficiency and development projects to secure control over its cost development. The Group’s ongoing integration process progressed successfully and the new organisational structure introduced in the autumn of 2008 contributed to the significantly improved performance of Uponor’s supply chain, in particular.

Uponor does not expect the external business environment to show clearly more favourable developments in 2010.

The comprehensive financial statements bulletin is available on the company’s investor website.