The car industry is one of the most frequently mentioned sectors when things take the downturn and in consequence when talking about severely wounded victims of the financial crisis. Unsurprisingly, the incalculable amount of delivery partners is also part of the victim list. Sioen, producer of technical textile, such as car seat covering, has suffered a big loss.
In 2009 Sioen made a total loss of 11.2 million Euros, in contrast to a profit of 3.2 million Euros one year earlier. More specifically, the turnover dropped by 20.4 %, which brings the result down to a total turnover of 251.9 million Euros. Furthermore, the company announced that the profit amounts 5.4 million Euros, consequently we clearly see a decrease by 75 % on an annual basis in comparison to last year.
Last mentioned negative results are the outcome of amortizations on activities that were sold and let down. The company has made use of the crisis to right size the company and restrain its activities. According to Financial Director Geert Asselman they have cut away the superfluous fat. Last year the company saved more than 15 million Euros. On the one hand 13 million on the reduction of general costs, on the other hand 2.6 million on personnel. The company was able to achieve this by making use of temporary unemployment and stimulating part-time work.
Next to the earlier mentioned savings on costs and personnel, they’ve also taken the necessary measures concerning activity efficiency. First of all Sioen sold Roltrans, a Polish establishment which manufactures covering sails for trucks. For clearness’ sake, the sails’ production will be continued but the adaption is being put to an end. Because of this decision they will no longer compete with their customers. This choice has certainly fallen on good ground with the customers according to the company.
In addition, also a smaller activity concerning the factory in Roubaix will be thrown to the winds. The factory was originally bought to acquire R&D knowledge. The factory produced technical dashboard foil in small quantities but is now being replaced by a new establishment in Moeskroen. The modern assembly-line will manufacture the same product on a larger scale, which will make things more profitable for Sioen.
As a final point, Mr. Asselman dares to face the future and is more optimistic about the situation in 2010, he expects an up going turnover and profit.
Personally I believe that 2010 will have something up on its sleeve and make a slight turn for the better for the manufacturer of technical textile.
Some time ago Volvo Trucks Ghent announced the introduction of a new assembly team. Seen the fact that the truck industry is responsible for 50% of Sioen’s total turnover, this is definitely promising news. On the other hand, let’s not forget that the inferior performance over the last few years can’t be rectified in one single year. We have to stay realistic and realize that it will take several years to regain previous losses.
Additionally, I must say that the takeover of Volvo by the Chinese Geely Group can be seen as good news for Sioen. Why? Because maybe the Chinese market has a lot of potential for Sioen because of the possibility to become a deliverer to Volvo Cars as well. Next to that, this can also open new horizons for other Asian car brands. Let’s hope for Sioen that other car brands acquire a taste for their company.
Source: "Sioen slikt 11 miljoen euro verlies"
In 2009 Sioen made a total loss of 11.2 million Euros, in contrast to a profit of 3.2 million Euros one year earlier. More specifically, the turnover dropped by 20.4 %, which brings the result down to a total turnover of 251.9 million Euros. Furthermore, the company announced that the profit amounts 5.4 million Euros, consequently we clearly see a decrease by 75 % on an annual basis in comparison to last year.
Last mentioned negative results are the outcome of amortizations on activities that were sold and let down. The company has made use of the crisis to right size the company and restrain its activities. According to Financial Director Geert Asselman they have cut away the superfluous fat. Last year the company saved more than 15 million Euros. On the one hand 13 million on the reduction of general costs, on the other hand 2.6 million on personnel. The company was able to achieve this by making use of temporary unemployment and stimulating part-time work.
Next to the earlier mentioned savings on costs and personnel, they’ve also taken the necessary measures concerning activity efficiency. First of all Sioen sold Roltrans, a Polish establishment which manufactures covering sails for trucks. For clearness’ sake, the sails’ production will be continued but the adaption is being put to an end. Because of this decision they will no longer compete with their customers. This choice has certainly fallen on good ground with the customers according to the company.
In addition, also a smaller activity concerning the factory in Roubaix will be thrown to the winds. The factory was originally bought to acquire R&D knowledge. The factory produced technical dashboard foil in small quantities but is now being replaced by a new establishment in Moeskroen. The modern assembly-line will manufacture the same product on a larger scale, which will make things more profitable for Sioen.
As a final point, Mr. Asselman dares to face the future and is more optimistic about the situation in 2010, he expects an up going turnover and profit.
Personally I believe that 2010 will have something up on its sleeve and make a slight turn for the better for the manufacturer of technical textile.
Some time ago Volvo Trucks Ghent announced the introduction of a new assembly team. Seen the fact that the truck industry is responsible for 50% of Sioen’s total turnover, this is definitely promising news. On the other hand, let’s not forget that the inferior performance over the last few years can’t be rectified in one single year. We have to stay realistic and realize that it will take several years to regain previous losses.
Additionally, I must say that the takeover of Volvo by the Chinese Geely Group can be seen as good news for Sioen. Why? Because maybe the Chinese market has a lot of potential for Sioen because of the possibility to become a deliverer to Volvo Cars as well. Next to that, this can also open new horizons for other Asian car brands. Let’s hope for Sioen that other car brands acquire a taste for their company.
Source: "Sioen slikt 11 miljoen euro verlies"
In my opinion, I don't think a big future is near for Sioen. The negative news messages are frequently appearing in the media, the prospects aren't getting any more promising, the upcoming markets are continuously retrieving market share, etc.
BeantwoordenVerwijderenIt's important to keep in mind that the textile sector related possibilities are constantly backing up and streaming to the BRIC-countries with their low income situation and improving knowledge. At the moment, Sioen is already working at a wage cost level that is 27% below the average wage cost of a textile employee in Belgium and things are still not going right.
For over 30 years, the the textile market in Europe is continuously backing up. Companies like Sioen through the years tried to stay competitive by chosing niche markets with very high knowhow requirements. Even today, they are trying to find smaller intellectual working possibilities in these tiny niche markets like the sail production market. It's too bad the company is still fishing in a pond that is drastically getting smaller and smaller every year.