Roto held the company’s 12th International Trade Press day highlighting the 2017 market that had increased performance, competitiveness, and sustainability along with the growth and future for 2018.
For the first time in years, Roto’s Global CEO, Dr. Eckhard Keill, attested that the international construction industry is in slightly better shape in 2017. The upswing in the United States, which has been on-going for several years, is continuing with an increase expected to be in the mid-single-digit range. In Canada, the recovery of the construction industry was much better than predicted after two weak years.
Keill confirmed continued differentiated development for Latin America. For instance, a renewed positive trend in Argentina is in contrast with a construction industry that is slowing once again in Brazil, and now also in Mexico. The head of Roto explained that after drastic losses, the economy in Russia is slowly recovering again. However, continued uncertainty can be felt, meaning that incipient stabilization in residential construction remains fragile. In contrast, in China, the construction sector is proving to be the mainstay of general economic growth.
In Europe, the slight upwards trend is likely to pick up speed. For instance, the Euroconstruct research network is expecting an average construction growth of 3% for its 19 member countries. In addition, it is predicting a total turnover of around 630 million euros, which is 1% to 2% above the previous year’s level in a globally consolidated market environment.
With the slight turnover increase achieved by the reporting date, Roto is expected to outperform the Groups market which is vital to its own business. All things considered, CFO Michael Stangier appeared to be “really pleased” with both the turnover side and the performance in the “market shares” category.
Stangier also reported extensive capital investments. As part of a multi-year program, just under 30 million euros were invested mainly in three focal points.
The targeted acquisition strategy also serves to consistently increase performance, competitiveness and sustainability. The ability to access finance without problems for all acquisitions is a clear expression of Roto’s economic stability.
The “extreme pressure on revenue” in the Window and Door Technology division is of crucial importance. This is based on the “dramatic increase” in the price of raw materials with a lack of availability at the same time. The quotations for zinc have almost doubled since the beginning of 2016, while the increases for aluminum and steel were approximately 40% each.
Regarding the fundamental framework conditions for 2018, Keill believes that: “if things in the markets remain as they are, we can work well.” The currently observable and predicted economic development is cause for cautious optimism in most countries. Exceeding the market average also features among Roto’s objectives once again. The priority is to create a long-term turnaround of the revenue trend due to the essential price increases.
About Roto North America
Roto North America is wholly owned subsidiary of Roto Frank AG, a global leader in window and door hardware, with 17 production plants and more than 40 subsidiaries worldwide. Roto Frank of America, Inc. is Chester, Connecticut-based and Roto Fasco Canada, Inc. is Mississauga, Ontario, Canada-based. Both locations manufacture window and door hardware, which offers solutions for North American and European applications.
For more information please visit www.rotonorthamerica.com