Report on 2015

Despite difficult market conditions, the Van Leeuwen Pipe and Tube Group maintained its global market position in 2015. In a market in which demand in the Energy segment continued to deteriorate and prices significantly dropped, the company managed to keep its sales tonnage stable and increased its market share. Sales and the gross margin on sales declined as a result of the overall drop in prices. In spite of this, the company realized a positive net result of € 4 million.

Van Leeuwen’s sales amounted to € 623 million, a slight decrease compared to 2014 (€ 643 million). The operating result and the net profit declined in comparison to last year and amounted to € 4.5 million (2014: € 11.9 million) and € 4.0 million (2014: € 7.7 million), respectively. Solvency significantly improved to 46.0% (2014: 41.5%).

Market conditions

In spite of the reduced market demand, Van Leeuwen realized a slight growth in the tonnage sold in comparison to 2014 and increased its market share.

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Price trends

The market was faced with a serious degree of overcapacity in 2015. The current global production capacity is now greater than the global demand.

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Strategy

The central themes of our strategy are stability, continuity and continuous improvement in returns. The spread across regions and markets is an important factor.

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Worldwide trends

Developments in the markets and at Van Leeuwen in Europe, the Middle East, Asia, Australia, and North and South America.

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Profitability in spite of difficult market conditions

The consolidated sales of the Van Leeuwen Pipe and Tube Group were € 623.3 million, a decrease of 3% compared to 2014 (€ 642.7 million).

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Developments within the organization

Van Leeuwen continuously works on improving and optimizing its processes and business operations. Areas of focus include delivery reliability, stock management, IT and quality assurance.

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Outlook

Also in 2016, market conditions will be very challenging. Nevertheless, Van Leeuwen sees opportunities in various markets around the globe.

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