Exceptionally weak market conditions combined with higher raw material costs and a strong increase in energy prices contributed to the deterioration of results in the first half of 2013. Growth ambitions in focus areas, namely papers for niche markets of digital inkjet printing, label and packaging applications were also hampered by the slump in the European market. CVG has however taken the necessary actions to further expand its business network in these focus areas and expects to reap the benefits of this expansion as soon as European market conditions show improvement.
Revenue amounted to Euro 78 million, compared to Euro 83 million in the first half of 2012. Sales volumes dropped by roughly 4% to 102,300 ton and production volumes increased by nearly 1% to 107,600 ton.
Miklas Dronkers, CEO, commented: “In the past few years we have been working very hard to strengthen Crown Van Gelder s commercial focus. Driven by our New Business Development program, CVG is now positioned as a speciality supplier focussing on digital inkjet, label and packaging, offering a broad and modern range of new products. However, economic developments and market circumstances have not been favourable, leading to pressure on our results. The traditionally weaker European paper market during the summer period and the difficult market conditions will continue to depress our results in the second half.”
Crown Van Gelder N.V. is a specialist paper manufacturer with around 280 staff. The company develops, produces and sells high-quality speciality products in the woodfree uncoated and singlecoated paper sectors.
