Crown Van Gelder: Revenue up 8% to Euro 83.1 million

Jul 29, 2011. /Lesprom Network/. Crown Van Gelder's net result for the first six months of 2011 was a loss of Euro 1.2 million compared to profit of Euro 0.5 million in the first six months of 2010, as the company said in a press release received by Lesprom Network. The results are in line with earlier communicated expectations. Results dropped due to the strong increase in pulp prices with selling price increases not fully covering higher input costs. Compared to the net loss of Euro 2.1 million in the second half of 2010, results improved due to better demand for paper in Europe, especially for products under the New Business Development (NBD) programme and the successful execution of a cost reduction programme. In the first half of 2011 revenue amounted to Euro 83.1 million (H1 2010: Euro 77.3 million). The sales volume decreased by around 1% to a level of 102,900 ton and the production volume rose by 1% to 102,800 ton. Miklas Dronkers, CEO, commented: “Despite product mix improvements and cost reductions, the first half of 2011 was loss making. This can be attributed to the challenging market conditions and high pulp costs, and both are also expected to have an impact in the second half of 2011. The speeding up of our New Business Development (NBD) programme should address these challenges. NBD sales developed positively in the first half of 2011. Major efforts in marketing and technology have contributed to a number of new NBD developments, which should give support to the acceleration of our NBD programme. In addition, investigations have been directed at opportunities for cooperation with other market players. The order intake developed satisfactorily in the first half of 2011, and we expect that this will have a positive impact on sales volumes in the second half of 2011.” Crown Van Gelder N.V. is a paper specialist, based in Velsen, Netherlands. The company develops, produces and sells high quality specialty products in the woodfree uncoated and single-coated paper sector.