Further improvement of result

The Van Leeuwen Pipe and Tube Group’s consolidated sales were € 630 million, an increase of 3% compared to the previous year. The total tonnage sold as compared to 2017 decreased by 2%. The sales from stock increased by 10%. Out of the total sales, the Industry segment contributed 55% (2017: 51%) and the Energy segment 45% (2017: 49%). The net result was € 9.7 million, an increase of € 3.4 million compared to the previous year.

The total income of € 117 million was in line with the previous year. This included a negative currency effect of € 1.4 million, as well as miscellaneous income in relation to the purchase price allocation of the Ferrostaal Piping Supply acquisition. The average sales (and cost) price per ton was higher, but the total volumes were somewhat lower than in 2017. The total expenses decreased by € 0.6 million to € 103.7 million. The total expenses include one-off costs of € 0.2 million, in connection with restructuring cost. In 2017, these one-off expenses were € 1.2 million.

The operating result amounted to € 13.5 million, an increase of € 1.1 million compared to the previous year. Excluding one-off costs, the operating result would have been € 13.7 million. This is an improvement of € 0.1 million as compared to the 2017 result when corrected for one-off (restructuring) cost.

The operating working capital increased by € 28 million to € 207 million. This increase is mainly the result of the Ferrostaal Piping Supply acquisition and higher stock levels (both in tonnage and in average price). The net debt position increased from € 18 million to € 50 million. The Van Leeuwen Pipe and Tube Group’s cash position and bank facilities are sufficient to meet the financing requirements. The Group’s equity increased by € 8 million to € 171 million, while solvency remained strong at 44%.

The improving economy put upward pressure on our operating costs. We kept costs at the same level by implementing efficiency measures. By maintaining a flexible workforce layer, we were able to effectively handle the additional work resulting from increased market activity.