Eurocell 4

May 14, 2023

By Kyle Morris

Eurocell said Friday that sales for the first four months of the year fell slightly against tough comparators and that it now sees 2023 adjusted pretax profit below current market expectations.

The U.K. manufacturer of window, door and roofline PVC products said that for the four months to April 30, sales were down 2% on year as the year-prior period saw a very strong performance. Trading volumes were down 6% in the period.

The company also said it has continued to experience cost inflation, particularly for electricity. PVC resin prices have fallen slightly, but remain volatile. Feedstock prices for recycling plants remain significantly higher on year as well, it said. It has offset input cost inflation with selling price increases and surcharges, but lower volumes and resin prices are driving competitive markets, resulting in margin pressure.

It now sees adjusted profit before tax for 2023 below current market expectations of 22.0 million pounds ($27.5 million) as the market remains challenging.

Write to Kyle Morris at [email protected]

Even if the Federal Reserve skips a June rate hike to give 5% rates more time to sink in, stocks, bond and the economy still face challenges.

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