Timber trade records strongest growth

“The modern specialist construction trade is facing many new challenges such as a lack of specialist personnel and digitalisation. These tasks are consuming a lot of energy. In spite of this, our EUROBAUSTOFF specialist traders are continuing to achieve success at the PoS”, says the Chair of the EUROBAUSTOFF Management, Dr. Eckard Kern, with satisfaction in view of the latest quarterly figures. A glance at the current sales developments reveals that, in comparison to the same time period from January to September 2017, EUROBAUSTOFF has been able to record a plus in sales figures of 4.16 %.

However, the path to this success has not been easy:

• Craftspeople working at full capacity are slowing down growth  
• A lack of drivers and specialists is leading to bottlenecks in supply
• The extremely hot summer and lack of water has made things very difficult for several trades. 

These factors have caused volatility in sales figure developments during the course of the year. “It is all the more remarkable that our specialist traders have not only been able to retain, but also enlarge their sales volumes to the end of the third quarter”, emphasises Dr. Kern.

Timber and Construction Elements, closely followed by Underground Engineering
It is a fact that at EUROBAUSTOFF, bottom line September status, the strongest growth has been recorded in the Timber division. The Timber specialist division has grown from January to September by a total of 14 %; in part through substantial price increases in wooden materials. The Bad Nauheim company is able to record stronger growth from the classic construction materials trade, which is increasingly concerning itself with wood and is happy to utilise the consultation services from headquarters.

Windows and Doors segment has experienced two-figure growth
The Construction Elements specialist division has grown by over 10 %.
In spite of changes in constructional design (fewer pitched roofs, more flat roofs), sales in the area of loft ladders remain stable. These volumes are increasingly being produced through renovations (replacements). Sales in the Windows and Doors segment have even entered the two-figure range. The specialist traders who also offer assembly have achieved appropriate success figures.

With regard to interior doors, the development – without counting the new shareholders particularly strong in this segment – lie in the high single-figure range and can therefore be classed as slightly over the market average. If the new shareholders from 2018 are taken into account, sales figures have even increased to the two-figure range.

In the Steel segment (frames, garage and industrial gates, tubular frame elements), the development figures lie in the middle single-figure range, which is also slightly better than the general market trend.

Underground engineering sales have increased by 12 %
The second-highest growth rate regarding goods after the Timber specialist division was achieved by Underground Engineering with a plus of over 12 %: Because the money keeps rolling in for road construction due to well-filled public coffers, there are a lot of irritating traffic jams. In September, too, Underground Engineering figures stood at 13 % over the previous year. And the requirements are still high, but differ greatly depending on the respective region.

However, price increases have also played a role with regard to this strong growth. In spite of this, the adjusted growth for this specialist division still lies at plus 8 %, and Underground Engineering in the two-figure plus range. The high number of orders received by the companies will extend into 2019, meaning that Underground Engineering can expect to remain in the black.

Retail trade has exceeded expectations with plus 5.21 %
The Retail Trade division of EUROBAUSTOFF has exceeded expectations with a positive result of 5.21 % (all figures cumulated to the previous year):
The Work Clothing product range developed to an above-average extent (+10.31 %) – amongst other things due to the comprehensive implementation of the appropriate EUROBAUSTOFF concepts. These include in detail the updated goods presentations and the range of work shoes.

The product range Timber, Retail Trade is also doing extremely well: 11.67 % for decorative timber and 11.54 % growth for timber in the garden reflect the strong work conducted on this range, which has focussed on superior appearance and higher quality, for example with regard to privacy screens and patio surfaces.

The Seasonal range has also achieved success with a two-figure growth rate; here the EUROBAUSTOFF specialist traders have profited from the high demand for accessories and decorations in indoor and outdoor living quarters (13.97%).
The classic ranges such as tools and ironware are also developing well with a strong plus of 5.82 % (ironware) and 5.42 % (tools); this is strongly promoted for EUROBAUSTOFF through the specialist trade.

Positive garden and landscaping business development in spite of a turbulent season
The garden and landscaping business specialist division can look back on a turbulent season, with snow in March and Saharan temperatures over the summer. All of these conditions slowed down activities in the garden and landscaping business. The EUROBAUSTOFF specialist traders were still able to achieve a positive result of 6 %. The investments made in the attractive garden and landscaping exhibitions and the high-quality magazine STEINTrends had a positive influence on private customers. A positive result is also expected over the remaining months of the year.

Hot summer placed strain on fully-exploited roofing trade
The divisions with the most turnover, Dry Construction/Insulation Materials (2.52), Structural Engineering (2.59%) and Roof & Facade/Construction Metals (3.15%) have recorded low, but consistent growth – around 3 % respectively.

Roof & Facade has developed with a slight plus of cumulative 2.5 %; flat roof sales are increasing positively; pitched roof sales figures are still dropping. This is mainly due to the abovementioned changed construction designs for single-family homes and apartment buildings, which are increasingly being designed with flat roofs. 

The hot summer placed great strain on the roofing trade, and may have caused a reduction in productivity. Furthermore, the processor capacities are still limited, meaning that roofers are working to full capacity and that further growth is not possible.

Price reductions on zinc
The Construction Metals specialist division is currently standing at minus 3.06 % overall. In the area of finished goods and semi-finished goods, the development lies at plus-minus 0 %. This is highly positive, as the pitched roof market continues to falter, and also because substantial price reductions were recorded, in particular for zinc, in the last quarter. The LME quotation sank in the third quarter by over 13 %. In September alone, the average LME quotation lay at more than minus 20 %. On the other hand, business with trapezoidal sheets and sandwich elements is developing positively. Here the product sector can record a plus of 6.5 % in comparison to the previous year.
 
Changeable raw material sales
The Structural Engineering division closed at the end of September with a plus of 2.59 % in comparison to the previous year. In the month of September, the Plasters/ETICS, Construction Chemicals and Ready-mix Concrete divisions were able to raise their sales figures slightly. The Raw Materials segment has been through a highly changeable third quarter with an outstanding July and two much weaker subsequent months.

Specialised tile dealers have noticed changes in customer behaviour
The mood in the Tile/Natural Stone division is only mildly euphoric. The EUROBAUSTOFF shareholders are still satisfied with developments in the affiliates, but the expectations were in fact higher. Tile-layers are working to full capacity, but changes in customer behaviour causing them to increasingly use other products is making the market shrink. The price and profit margin pressures are obviously high within the trade and the industry.  

Perspectives
Managing Director Hartmut Möller, who is responsible for all goods divisions, is expecting a good growth spurt to the end of the year “This is indicated by the current good weather conditions and the high number of orders in almost all trades”. He also makes reference to investigations conducted by leading economic research institutes for construction: “According to these sources, the order range has reached record levels, extending into next year. And the figures for construction permits obtained for residential and non-residential construction, which have hardly changed, also cause us to expect favourable business developments at our specialist construction traders for 2019”.

At EUROBAUSTOFF, the strongest growth has been recorded in the timber trade. High-quality exhibitions and the assembly service have paid off.

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