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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%.

“All of Uponor‘s segments increased their net sales, but we cannot be satisfied with the profitability development in our building solutions businesses. Uponor has introduced price increases in Europe and North America to mitigate the impacts of rising raw material costs and freight rates,” says Uponor’s President and CEO, Jyri Luomakoski.

He also commented development in the company’s segments:

“The market environment has remained positive, but bottle necks in planning and installation capacity, particularly in Europe, are creating challenges to benefit from the growth in the construction volumes.”

“Net sales in the Building Solutions – Europe segment increased slightly. Net sales grew in most of the European markets, but the rising raw material prices impacted on the operating profit.”

“Net sales in the Building Solutions – North America segment grew, but the rising level of freight rates as well as start-up costs of the new manufacturing facility in Hutchinson reduced operating profit. On the positive side, the start-up of Hutchinson in the second quarter was successful and ahead of schedule.”

“Uponor Infra had a strong second quarter, with operations in North America continuing strong. In Europe, the benefits of the transformation programme are clearly visible. Net sales in Europe improved, particularly in Sweden and Poland.”

“We expect that the market outlook for the second half of 2018 remains positive. However, one should take note of how the comparison period in the third quarter 2017 was exceptionally strong after the recovery from the temporary production issue in Building Solutions – North America in April 2017.”

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