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.
Turnover of the international trading company specializing in steel pipes, and pipe and tube applications amounted to € 630 million, an increase of 3% 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%.
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.”
Additional information about the 2018 results on: www.vanleeuwen-report.com
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 more than forty branches spread throughout Europe, the Middle East, Asia, Australia, and North America.
The Van Leeuwen Pipe and Tube Group has acquired the business of Ferrostaal Piping Supply, a German-Dutch pipe and tube trading company that primarily supplies the chemical, petrochemical and machine building segments. The acquisition takeseffect on May 1, 2018.
Ferrostaal Piping Supply, founded in 1953, specializes in the supply of pipes and piping materials, and operates in the chemical and petrochemical, the equipment and machine building, and trade segments. The company's head office is in Essen, Germany. The company primarily focuses on markets in Germany and the Benelux. In addition, Ferrostaal Piping Supply exports its products to various parts of the world. The company's annual turnover is more than € 50 million and it employs approximately 40 persons.
The activities of the Dutch branch of Ferrostaal Piping Supply will be carried out from existing Van Leeuwen companies. The Ferrostaal teams in Germany will operate as independent commercial teams, as part of Van Leeuwen's network. The company will retain its own name, employees and customer base that will benefit from Van Leeuwen's broader offering of products and services.
Van Leeuwen's strategy is focused on further expanding and strengthening its leading market position in various industrial segments through means of acquisitions and autonomous growth. The acquisition represents an important expansion of Van Leeuwen's commercial network. Ferrostaal Piping Supply gives Van Leeuwen greater access to the German market, in particular the chemical and petrochemical segments, in which Van Leeuwen operates throughout the world. In addition, the acquisition provides an opportunity for further expanding the services provided to the machine building segment, a segment in which Van Leeuwen has successfully operated for many years in other European countries.
Peter Rietberg, Chairman of the Management Board: "Through the addition of Ferrostaal Piping Supply to our network, we are in a position to especially serve the German market even better. This expansion of our global network offers benefits to our national and international customers, as well as our suppliers. Especially our customers in the German market in the chemical and petrochemical segments can now make optimal use of our expertise and specialisms relating to stocks, procurement, distribution and project management."
Van Leeuwen Pipe and Tube Group
The Van Leeuwen Pipe and Tube Group is a globally operating trading company that specializes in steel pipes, and pipe and tube applications. The company operates in nearly all industrial sectors. The company was founded in 1924. The Group has approximately forty branches spread throughout Europe, the Middle East, Asia, Australia, and North America.
In 2017, the Van Leeuwen Pipe and Tube Group profited from increased market demand in Europe, higher price levels worldwide and cost reduction measures taken in previous years. Total turnover and operating result improved significantly compared to 2016. The total tonnage sold worldwide and the volume sold from stock at the European distribution companies both increased.
Sales of the international trading company specializing in steel pipes, and pipe and tube applications amounted to € 613 million, an increase of 12% compared to 2016 (€ 549 million). Operating result and net profit increased and amounted to € 12.4 million (2016: € 1.6 million) and € 6.3 million (2016: € 0.7 million), respectively. Solvency remained strong, in excess of 48%.
With its stocks and distribution concepts, Van Leeuwen was able to respond to the growing demand in the European industry market. Sales volumes increased and the company achieved higher turnover in the steel construction market, with large manufacturers in the agricultural machinery segment and with customers in the specialized machine and crane building segment. Additional turnover was achieved with customers on the basis of long term service and delivery agreements. Van Leeuwen opened a new sales office in Germany.
Demand in the energy market is recovering, but is not yet at the same level of a few years ago. However, Van Leeuwen realized a significant improvement in sales in the energy segment. The business activity of Van Leeuwen companies in the Middle East, Southeast Asia and North America improved in the second half of the year. Activities in the downstream segment are increasing, as investments are no longer postponed. In 2017, Van Leeuwen, as a result of its international network of stock locations, achieved further success with the execution of worldwide contracts with large petrochemical companies, for construction projects as well as for maintenance.
Peter Rietberg, Chairman of the Management Board: "We have significantly improved our result in the past year. Our strategic spread across various market segments and continents also proved to be important in 2017. The outlook for 2018 is positive. There is more confidence in the market and investments are increasing.The market is showing keen interest in the total packages we offer, with logistics, storage, distribution and project management added to our supply of pipes and tubes."
Additional information about the 2017 results on: http://www.vanleeuwen-report.com
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.