Hempel achieved a positive result in 2009, despite a loss of 10 percent on its top line due to the shrinking world economy. This means Hempel is now in a strong position to invest in the future.
The Hempel Group delivered an operating profit of EUR 92 million (US$124m) in 2009, up EUR 3 million (US$4m) from 2008, despite a drop in the Group's revenues caused by stagnation in the world economy.
Hempel's 2009 results:
– Group revenues fell by 10 percent, from EUR 916 million to EUR 826 million
– Operating profit rose by 3 percent to EUR 92 million
– Net profit rose by 23 per cent to EUR 44 million (US$59.3m)
The positive result means that Hempel can continue with investments planned before the economic crisis hit in 2008. These include new factories in Poland and China, and increased focus on a broader array of industries to support Hempel's future growth.
According to Pierre-Yves Jullien, Hempel Group President and CEO, the good results prove that Hempel's strategy is working: "This is a testimony to Hempel's ability to resist difficult economic situations. It affirms that the decisions we took in 2009 were the right ones – and shows that customers rely more and more on professional and efficient suppliers, whatever the economic context. We know that 2010 will be a difficult year for many areas of our business, but we are in a good position to grow in the coming years."
Hempel's marine segment performed well in 2009, with sales boosted by innovative products such as the award-winning Hempasil X3. The Protective segment still accounted for 45 percent of Hempel's business in 2009, despite stagnation in Europe and the US. However, Hempel's container business almost stopped in 2009 as world demand for containers fell dramatically. This accounted for around seven percent of the drop in Hempel's revenues in 2009.
Hempel's decorative segment exceeded expectations in 2009, especially in the Middle East, and a new research and development centre in Bahrain should help improve performance in the years to come. And while global consumption dropped, Hempel's yacht segment still managed to maintain its market share.
Hempel's annual report is available as a PDF file at www.hempel.com.