Uponor’s Q3/2018 results: Net sales and comparable operating profit fell behind from exceptionally strong comparison period.
"September was a disappointment for us, which impacted on the whole quarter’s result. The price increases introduced during the summer to compensate for increasing raw material costs and freight rates did not yet fully materialise as expected in Q3, which had an impact on our profitability together with declined net sales in building solutions segments," comments President and CEO Jyri Luomakoski.
Uponor turns 100 years
On 13 August, exactly 100 years ago Aukusti Asko-Avonius signed the papers and established a carpentry workshop in Lahti, Finland, which is where Uponor’s story began. The workshop quickly grew into the largest furniture supplier in the Nordic countries, and in the 1960’s the company expanded its business further into the plastics industry.
To honour the anniversary year, Uponor has been invited to New York to close the trading at the Nasdaq stock market on 20 August 2018.
Half year financial report 2018:
Growth of net sales and operating profit was driven by strong performance by Uponor Infra.
Uponor’s consolidated net sales for the second quarter reached €324.9 million, with an organic growth of 5.3%. Uponor’s comparable operating profit came to €28.0 million, a change of 17.9%.
Pipe World magazine has been published
This year’s first issue of Uponor Infra's customer magazine, Pipe World, has been published. Pipe World gathers together some of the most interesting cases and stories from Uponor around the world.
Strong net sales of North American businesses drive performance improvement in the first quarter
In the first quarter of 2018, Uponor’s net sales reached €276.9 million, with organic growth at 4.5%, or 10.7% excluding the adverse currency impact. The operating profit came to €17.0 million, a change of 16.1%, the currency-neutral improvement being 24.9%.
“The first quarter of 2018 was rather uneventful overall. In contrast to 2017, the Easter started in the first quarter resulting in fewer shipping days, which impacted net sales, similar to the prolonged winter that turned out to be somewhat unfriendly to construction in most of our key markets,” says Uponor’s President and CEO, Jyri Luomakoski.
He also commented development in the company’s segments:
“Generating growth in our Building Solutions - Europe segment continues to be a challenge. While the markets are in good shape, they are not growing in step with the prevailing positive sentiment. Our prefab initiatives continue to progress in line with expectations, as our solutions are genuinely helping customers to improve technical quality and offset labour shortages.”
“Building Solutions - North America had a positive start for the year, recovering well from the supply bottlenecks witnessed last year as a consequence of a production outage in Q2/2017. Nevertheless, due to currency conversion, the consolidated numbers, reported in euro, do not show the positive progress made. Currency swings have not materially impacted on our competitiveness in North America, because operations there are local.”
“We are delighted by Uponor Infra’s overall growth. In 2016 - 2017, the segment carried out and invested in a transformation programme to streamline its Nordic operations. In the current quarter, however, the segment’s growth came mostly from outside the Nordic markets, and hence the benefits of the Nordic transformation programme were not visible.”
The comprehensive financial statements bulletin is available on the company’s investor website.
Uponor is proud to sponsor Team Nepali: an interdisciplinary team of five master and doctoral students from Aalto University in Helsinki, Finland, who are carrying out research project this spring called Nepali as part of a studio course in Aalto University, Helsinki and the Sustainable Global Technologies programme.
Uponor Story – Better Living Environments documentary film now available
Uponor's 100-year story has been made into a 42 minute documentary film, portraying the huge transformation Uponor has seen over the 100 years: after manufacturing furniture, Uponor produced cast iron, household appliances, and even fabric, until pipes and sustainability became the core of our company. The documentary shows how Uponor is changing into a producer of solutions relating to comfort and health, highlighting also how precious a raw material water truly is.
Tarmo Anttila, Vice President, Group Communications, says that the documentary has not only been made to celebrate our 100-year anniversary, but also for the people that have influenced Uponor's story over the years.
“The only downside here was that we could not include all the people we wanted to in the documentary, there were simply so many of them. The documentary as a whole, however, turned out to be a great success," says Tarmo.
Uponor is celebrating its 100-year anniversary in 2018
Uponor's story begins in 1918, when Aukusti Asko-Avonius established a carpentry workshop in Lahti, Finland. The workshop quickly grew into the largest furniture supplier in the Nordic countries. In the 1960's, the company expanded its business further into the plastic industry by bringing its first plastic pipes into the market.
Today, Uponor is a leading international provider of systems and solutions for safe drinking water delivery, energy-efficient radiant heating and cooling, and reliable infrastructure.
Uponor continues its solid performance, despite sizable investments for the futureIn 2017, Uponor’s net sales reached €1,170.4 million, up 6.5% in the organic terms. Uponor’s comparable operating profit in 2017 came to €97.2m million, representing a change of 7.2% year-over-year.
Uponor invests further USD10 million in Phyn to accelerate growth in smart water systems
Uponor has made a decision to invest an additional USD10 million in Phyn, a joint venture between Uponor and Belkin International, bringing its total investment in the company to USD25 million. With this second round of funding, Uponor establishes a 50 percent ownership in Phyn, with the other 50 percent owned by Belkin.
Phyn will utilise the funding to further accelerate market penetration and scale the company’s operations as it prepares for commercialisation in late spring of its debut product the Phyn Plus, smart water assistant + shutoff.
Phyn Plus is an intelligent water monitor that attaches to the main water line of homes. Through a combination of high-definition pressure sensing and machine learning, Phyn Plus detects leaks and plumbing issues and can automatically shut off the main water supply when needed to prevent costly damage. Phyn Plus will be available for purchase in the U.S. for USD850 exclusively through the Uponor Pro Squad, a nationwide network of expertly trained plumbers and water specialists.
Uponor's fourth International Trainee Programme has just been kicked off with nine new international trainees. Over the course of the two-year programme, the trainees will work on a number of different projects and tasks within the organisation, including at least one 6-month period abroad.
Last week, the trainees visited our production site in Nastola, Finland and our headquarters in Vantaa, Finland where they were welcomed by our President and CEO Jyri Luomakoski.
Uponor’s International Trainee Programmes offers graduates valuable work experience, the opportunity to develop their leadership skills and collaborate and network globally. Uponor has had trainee programmes since 2011 and they have been very successful and well-liked. Many of the previous international trainees are still working for Uponor, now in permanent positions. The next programme is set to start in 2020.
Uponor changes to Large Cap segment on Nasdaq Helsinki exchange
Effective as of today 2 January 2018, Uponor Corporation will change from Mid Cap to Large Cap segment on the Nasdaq Helsinki exchange.
Annually in November, Nasdaq reviews the market cap segments and changes the placement of companies in these segments accordingly, effective as of the beginning of the following year. Companies with a market value over 1 billion euro are in the group of “Large Cap”, while companies with a market value between 150 million euro and 1 billion euro belong to the “Mid Cap” segment. “Small Cap” consists of companies with a market value of less than 150 million euro. Uponor has already previously been in the Large Cap segment, but was moved to the Mid Cap segment when its share price fell radically after the financial crisis of 2008.
A total of 21 companies changed segment this year at Nasdaq Nordic exchange. Read the press release
Season's Greetings with Uponor eCard service
Send your Season’s Greetings to your family, friends and business partners and use Uponor's Season’s Greeting eCard!
Just add a personalised message and email address to each card separately, and the eCard will deliver your holiday greetings! Send as many greetings as you like, there are no limitations on spreading good cheer!
Uponor wishes everyone a wonderful holiday season and a Happy New Year 2018!
This year again, Uponor will be taking part in ReCoTech (Real estate and Construction Technologies), which is a networking event for discovering new ideas and meeting potential new partners from various sectors. The event takes place in Helsinki, Finland on 30 November 2017.
Uponor’s International Trainee Programme is now open for application
Build on Uponor: International Trainee Programme is now open for application until 15 November 2017. The 2-year programme is set to start mid-January 2018.
Uponor will be recruiting eight new trainees, who will be based at Uponor’s units in Finland, Sweden, USA, Spain, Poland, Denmark and Germany. The trainees have the option of choosing between a technical and a commercial track.
Half year financial report January - June 2017:
Uponor grew modestly in Europe; U.S. business impacted by a temporary production issue
Uponor’s consolidated net sales for the second quarter reached €308.4 million, with an organic growth of 3.0%. Uponor’s comparable operating profit came to €23.8 million, a change of -22.6%.
Uponor’s good progress in the third quarter offsets the shortfall in the second quarter.
In the third quarter, Uponor’s net sales reached €317.5 million, up 11.8%. Uponor’s comparable operating profit in the quarter came to €40.4 million, representing a change of 38.9% year-over-year.
Uponor’s Ilari Aho joins global green building leaders on Board of World Green Building Council
Uponor Vice President - New Business Development & CSR, Ilari Aho has joined a highly influential group of global leaders on green building in the building and construction industry as part of the World Green Building Council’s Board of Directors.
Uponor’s President and CEO shadowed for a day by student Roope Lääkkölä
Last week, Uponor’s President and CEO Jyri Luomakoski was shadowed for a day at Uponor’s headquarters in Vantaa, Finland, by Roope Lääkkölä, a fourth year business student from Aalto University School of Business, currently completing his master’s degree, majoring in Finance.
Efficient and simple smart home control with Uponor Smatrix App
With the new Uponor Smatrix App easily control the room temperature in your home from anywhere via smartphone or tablet. If you are out of town, save energy and money by simply switching the heating to “Away” or “Eco” mode. This increases comfort and further optimizes the energy-efficiency of your radiant heating and cooling system.
The Uponor Smatrix App replaces the former U@home App and includes now many new features for easier control of heating and cooling system:
- Easy and intuitive icon menu
- Photo scan for simple registration
- Built in tutorials for easy setup and support
- Overview of all rooms displayed on screen
- Heating and cooling demand indication
- Weather forecast
- Humidity measurement displayed for cooling (in combination with Uponor RH thermostat)
- Humidity limit alert for cooling
Uponor inaugurates factory and sales office in China
Uponor Corporation is strengthening its foothold in Asian building markets by officially opening its first manufacturing facility in Taicang, China today.
Being the company’s 14th manufacturing facility globally, the new facility started operations at the end of 2016, and is presently fully equipped and serving customer orders. The factory will serve as the base for the production of Uponor’s globally leading sustainable plumbing solutions and energy-efficient heating and cooling systems for the new residential and commercial building markets in China.
At the same time, Uponor is inaugurating its sales office in Shanghai, China, which will be the base for all sales activities in East China, including also Product Management, Engineering & Design and the National Marketing Team.
“Our production base in Taicang is Uponor’s first production base in Asia. On approximately 5,000 square metres, we are producing plastic piping systems for both plumbing and indoor climate systems made from PEXa, PPR and PERT, serving China and other Asian countries,” says Werner Witte, Vice President, Uponor Building Solutions - Asia.
Uponor's President and CEO, Jyri Luomakoski comments: "The year 2018 will mark Uponor's 100-year anniversary. The official opening of our first manufacturing entity in China is therefore a precious moment and marks the beginning of a new chapter in the life of Uponor. The Chinese building market is amongst the largest in the world, and I am excited about the opportunities it brings to Uponor."
Read the press release in full
Weholite Licence to Turkey
Uponor Infra Oy and GEZER Endüstri İnşaat Sanayi ve Ticaret A.Ş have signed a Weholite Licensing Agreement for the manufacture and marketing of the Weholite pipe in Turkey.
In addition to Uponor Infra’s own production of Weholite, there are licensees in UK, Iceland, Oman, South Africa, Malaysia, Thailand, Japan, Chile, Brazil, France and now also in Turkey.
Gezer is a Turkish manufacturer of solutions for tanks, manholes and pumping stations. Weholite production for Gezer will be carried out in their existing facilities in Istanbul area.
The Weholite product line, invented by Uponor Infra (former KWH Pipe) in the 1980s, consists of polyolefine pipe, fittings and fabricated assemblies. The structured-wall HDPE Weholite pipe is available in various sizes, with inside diameters ranging up to 3500 mm, which is of great interest of Gezer.
The pipe is used extensively worldwide in low pressure/gravity service applications for drinking water, stormwater, sewage and various other liquids. Weholite fabricated assemblies are designed for special functions, such as manholes, retention tanks and even individual family-sized sewage treatment units for non-urban regions.
The Weholite products are expected to be available from Gezer during the first quarter of 2018.
Interim Report January - March 2017:
Uponor’s net sales grows in all segments
Uponor’s consolidated net sales reached €265.1 million, organic growth 7.4%. Uponor’s comparable operating profit came to €15.0 million, a change of 0.8%.
“We made broad-based progress in several key markets across all segments in the first quarter, which had more business days this year than in 2016. The first quarter is an off-season quarter and performance trends may change further in the year. One such factor that may impact business going forward is an upward trend in the prices of key raw materials which we have seen in recent months. We have issued and are prepared to issue further price increases to compensate for higher input costs,” says Uponor’s President and CEO, Jyri Luomakoski.
He also commented development in other segments:
“Building Solutions – Europe’s net sales growth was strong in several of its key markets, but business operations experienced headwinds in the largest national market, Germany, in particular. Performance was negatively affected mainly as a result of intensifying competition in plumbing solutions, along with higher marketing costs related to the biennial ISH trade show.”
“The building solutions business in North America is progressing in a satisfactory manner and demand in the key market segments remains healthy, although not quite as lively as in the very strong comparison period.”
“Uponor Infra reported an improvement both in its top line and bottom line development, but reported an operating loss which is typical for the season. Faced with margin pressures due to emerging input cost risks, the segment continues to implement its strategy of focussing on designed solutions sales that is less dependent on raw material price movements.”
The comprehensive financial statements bulletin is available on the company’s investor website.
Uponor is no. 1 ranked for underfloor heating in Germany
Every second year the information service "markt intern" carries out the ‚mi‘-survey on radiant heating companies.
More than 20,000 skilled tradesmen have the opportunity to express their opinion on how satisfied they are with the products and services of the manufacturers.
The winner of the surface heating is: Uponor.
In a total of nine evaluated categories, Uponor has been able to pick up the top position for radiant heating manufacturers for the first time with a total score of 2.13. The best grades were given by installers, especially in the subcategories of assembly-friendliness/technology as well as complaints behavior / spare parts supply.
Uponor appreciates the motivating feedback and the trust by the participants!
Our promise to our customers: We will continue to do our utmost to be the strong partner you can rely on in all your needs.
BIM data for building products
Uponor now provides extensive Building Information Modelling (BIM) files library.
This offers opportunities for improving project efficiency.
Request the BIM library for MEP designers and engineers.