Deceuninck blames the move on rising PVC prices and a slow construction market

Window profile manufacturer Deceuninck has cut its 2004 profit forecast, citing rising PVC resin prices and a slow construction market. The company said it expected a 2004 operating result of E25-30m, compared with E53m in 2003. It also estimated an operating cash flow of E75-80m, compared with more than E90m last year.

Forecasts were revised on the basis of third quarter results and initial indications for the fourth quarter. Deceuninck said fourth quarter figures pointed to a stronger drop in building activity than expected, especially in the US and Central Europe. The cost of raw material prices has been rising since last summer, it said, and the company has not yet been able to offset the rise in raw material prices by an increase in its selling prices.

Deceuninck will introduce a second price increase, of 3-5%, which will come into effect in February. The increase, along with faster streamlining of Deceuninck’s activities, will form a good basis for a better 2005 result, the company said.