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RadiciGroup Posts Strong Results

Italian chemical group closed the year 2010 with consolidated sales revenue of EUR 1,162 million, +50% compared to 2009, and a Gross operating margin of EUR 140 million (+185%).

“The Group’s performance in 2010 was really outstanding” - RadiciGroup Chairman Angelo Radici said. “Our sales grew over 60% in the chemicals sector and almost 80% in plastics. Even fibres sales rose by 38%. In spite of the unfavourable raw materials environment in which prices continued to climb during 2010, our margins improved. At the world level we experienced a recovery in demand, and in our key businesses we either maintained or increased our market share. In Europe, our most important sales region, we managed to grow by benefiting, on one hand, from a greater imbalance in supply and demand on account of a number of restructurings in the chemicals and fibres industries and, on the other, from an increase in demand. Sales also increased in Asia and in the Americas, particularly North America, where we strengthened our position thanks to the acquisition of American compounder Michael Day in January 2010.”

“In the course of the years we have maintained a constant level of commitment focusing on our strategic businesses,” continued  Radici. “To contend with the difficult two-year period 2008 - 2009, we had to expend extra effort and make choices that were often not easy: from the closing of some businesses, considered to be less strategic and less integrated with respect to our core businesses, to the reorganization of production sites, in some cases resorting to the use of ordinary and extraordinary layoffs and mobility, according to the law.”

 

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“Throughout these difficult times, we have never stopped investing to strengthen our position in the chemicals, plastics and synthetic fibres fields,” explained the CEO of Italian group, “During the three years from 2008 to 2010 we invested EUR 80 million. In 2011 we plan to invest EUR 36 million to bolster the Group’s vertical integration and, most significantly, to improve our plant and technology so as to make them more efficient and flexible. We want to have the capability to respond effectively to the needs of the market, which has become more demanding, not so much in terms of volume, but in product differentiation and customization”

“We are very satisfied with our 2010 results,” said RadiciGroup CFO Alessandro Manzoni. “Our Group started to feel the effects of the crisis in the first months of 2008, well before companies in other industries. However, we were able to react immediately, by focusing our attention on asset management and using our financial resources to their best advantage". “Nevertheless, 2011 will not be an easy year,” concluded Manzoni. “Passing down continual raw materials price increases is becoming more and more difficult, as is making medium-term forecasts for our target markets. Still, we believe that we will be able to achieve good results in 2011, even if our profits are lower compared the results of an exceptional 2010.”