Van Leeuwen
Difficult year for the Van Leeuwen Pipe and Tube Group

Difficult year for the Van Leeuwen Pipe and Tube Group

  • Sales and gross margin affected by low material prices 
  • Tonnage sold at similar level compared to the previous year 
  • Positive net profit despite one-off (restructuring) costs

ZWIJNDRECHT, the Netherlands, 12 April 2017 – The Van Leeuwen Pipe and Tube Group achieved a small positive result in 2016. The tonnage sold remained stable, but lower prices affected sales and gross margin. Measures were taken to align costs with lower revenues. Despite one-off restructuring and liquidation costs of more than € 5 million, Van Leeuwen realized a net profit of € 0.7 million.

Sales amounted to € 549 million. Operating result (€ 1.5 million) and net profit (€ 0.7 million) decreased in comparison to 2015. The operating result excluding one-off (restructuring) costs, increased to € 6.8 million. Solvency improved to 49%.

In 2016, Van Leeuwen implemented cost reduction measures, including the liquidation of our company in Brazil and a reorganization in Zwijndrecht, the Netherlands.

In the first half of 2016, the activity level was low with continuous pressure on prices. Demand in the oil and gas market remained low. Despite decreased market demand, Van Leeuwen kept sales volumes in line with 2015, and supplied various major projects in Europe, Asia, North America and Africa.

In the second half of the year, the market recovered slightly and prices for steel products increased. Sales to customers in the industry segment grew, in part due to a strong European distribution network and the further development of added value concepts.

Van Leeuwen's results in Europe were stable. The companies in Asia and the Middle East strengthened their position. (Project) activity in North America was low in the first half of 2016, with a slight market recovery towards the end of the year. Van Leeuwen's position in Australia continued to be strong.

Peter Rietberg, Chairman of the Management Board: "After a difficult 2016, there is an upward trend in our results. In the first quarter, we see higher prices and a slight improvement in market volume. We expect our profitability to improve, in part due to the cost reduction measures already implemented. We will continue to invest in our global network and extensive portfolio, which will enable us to further strengthen our market position."

Van Leeuwen Pipe and Tube Group

The Van Leeuwen Pipe and Tube Group is an international trading company specializing in steel pipes, and pipe and tube applications. The company is active in virtually all industrial sectors. The company was founded in 1924. The Group has some forty branches spread throughout Europe, the Middle East, Asia, Australia, and North America.

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Van Leeuwen Pipe and Tube Group, Manager Corporate Communications, Ingrid den Hartog
E:, T: +31 78 625 23 32, M: +31 6 23 14 71 18



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