Manuli reports sales up in 2007, further strengthens distribution

ERJ staff report (DS)

Milan, Italy -- Manuli Rubber Industries ended 2007 with group sales of 304.7 million euros - up 8 percent from the previous year. MRI said 87 percent of sales are now generated in foreign markets - many of them in the dollar area.

The company announced a further acquisition: all the shares in the South-African company Powerforce Hydraulics Witbank, a leading distributor of hydraulic components for the mining industry. Powerforce Hydraulics Witbank employs 25 people and in 2007 registered sales of 2.5 million euros.

Earnings (EBITDA) fell slightly, to Euro 53.9 million from Euro 57.2 million a year earlier. The company blamed this on currency effects - notably the strength of the Euro against the dollar. Another factor in the decline, however, is the issue of fines and legal fees arising from investigations into the Marine Hose cartel. Manuli said the Marine Hose business is "a marginal sector for MRI, representing approximately 3 percent of sales." Ignoring these costs, MRI said EBIT and EBITDA were essentially unchanged from a year ago.

The company said total investments in 2007 were 27.3 million euros, mainly directed at improving manufacturing operations in China, Poland and Italy.

“The recent acquisitions of HEBU (the leading distributor of hydraulic components in the Netherlands) and Powerforce”, said Mr Dardanio Manuli, President and CEO of MRI, “have strengthened our global presence in the retail business, and will allow us to combine the advantages of a fully integrated line of products backed by quality services with a strong local presence”.

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Press release from Manuli