Van Leeuwen Pipe and Tube Group Reports High Profit in 2018
The 2018 result of the Van Leeuwen Pipe and Tube Group further improved as compared to previous years. Market circumstances and economic activity were favorable in most business segments. The network was expanded with an acquisition in Germany. Van Leeuwen made further investments in distribution and service facilities as well as in innovative solutions for the customer.
Van Leeuwen headquarters in Zwijndrecht, Netherlands (Image: Van Leeuwen Pipe and Tube Group)
Turnover of the international trading company specializing in steel pipes, and pipe and tube applications amounted to € 630 million, an increase of 3 percent compared to 2017 (€ 613 million). Operating result and net profit increased and amounted to € 13.5 million (2017: € 12.4 million) and € 9.7 million (2017: € 6.3 million), respectively. Solvency remains strong at 44 percent.
In 2018, demand in both the European industry market and the worldwide energy market developed favorably. Van Leeuwen achieved better results in all industry market segments than in 2017. Developments in the energy market were also positive. There was significant recovery in key markets, such as Asia and North America, where Van Leeuwen achieved good results. Particularly in the pipeline segment, Van Leeuwen s sales is growing.
On May 1, 2018, Van Leeuwen acquired the operations of Ferrostaal Piping Supply, a German-Dutch pipe and tube trading company. This provides Van Leeuwen with better access to the German and Central European market, in particular the chemical, petrochemical and machine building segments. Under the global contract with ExxonMobil, Van Leeuwen supplied materials for MRO and projects in Europe, North America and Asia.
Van Leeuwen is currently investing in the expansion of its international network of stock locations, modernization of its machine park and in digitization. The construction of an additional 2,000 m² warehouse in Sydney, Australia, has been started. In Vyškov, Czech Republic an extra 4,000 m² hall will accommodate a state of the art storage system. To meet the growing demand for data exchange with customers and suppliers, the further implementation of Electronic Data Interchange (EDI) will be accelerated in 2019.
Peter Rietberg, Chairman of the Management Board: "Van Leeuwen achieved a solid result in 2018. As a leading specialist, we continue to invest in innovation and in strengthening the connection with our customers. Our Van Leeuwen brand, which for 95 years represents a reliable and professional distribution partner, is of inestimable value in this regard."
Source: Van Leeuwen Pipe and Tube Group