The strong recovery of results is in line with earlier communicated expectations. The return to profitable operations in the first half of 2014 was supported by improved market conditions, healthy order intake, a strong increase in focus product sales and lower pulp and energy prices.
In the first half of 2014, revenue amounted to Euro 83 million, compared to Euro 79 million in the first half of 2013. Sales volumes increased by 4% to around 106,000 ton.
In the first half of 2014, CVG benefited from a recovery in the European paper market. The order volume in the European market for woodfree uncoated paper showed an increase of 4%, after a sharp downward trend in the preceding two years. CVG s production capacity was fully utilised during the first half of 2014, driven by a full order book. On average, selling prices were 1% higher in the first half of 2014, compared to the same period in the previous year.
Miklas Dronkers, CEO, commented: “Crown Van Gelder has faced a volatile business environment in the European paper market in the last couple of years. To counter these movements we introduced FOCUS 2016 in which we defined focus areas being high speed inkjet, label and specialty packaging. The efforts that have been made since are clearly driving results. The strong improvement of results Crown Van Gelder has reported for this first half year was supported by a market recovery and a decrease in costs of raw materials and energy.
“During our search for a strategic or financial alliance the last few months we have been in constructive talks with several interested parties. Although Crown Van Gelder has a stronger profile as a niche player and is well positioned to further expand its business network, this has not yet led to a concrete partnership.
The steady improvement of results in the first half of 2014, supported by enhanced commercial and operational performance, secures Crown Van Gelder of a profitable result in the second half of 2014.”
Crown Van Gelder is a specialist paper manufacturer with around 280 staff, based in Velsen (The Netherlands). The company develops, produces and sells high-quality specialty products in the woodfree uncoated and single-coated paper sectors.
