Denmark: The Board of Rockwool International A/S has approved the company's annual report for 2011. The report shows that the group's sales increased by 17.2% to Euro1.85bn. Rockwool's profit after minority interests increased by 25% and came to Euro86m, with investments at Euro161m. In 2012 sales are expected to increase by 5% with profit after minority interests of more than Euro80m. Investments excluding acquisitions is expected to be around Euro188m.
"Despite the turbulent state of the world economy in 2011, the year produced many positive developments in the Rockwool Group," wrote Rockwool's CEO Eelco van Heel in the report. "We managed to grow sales by 17% and, even though there was strong pressure on raw material prices, we also maintained our profitability at more or less the same level as the previous year."
Van Heel added that Rockwool had been less adversely affected than other areas of the construction industry because European countries such as France and Germany are looking to increase efficiency during times of economic hardship. He also noted that Rockwool had been expanding its activities outside of Europe and had grown its 'Systems' business.
Rockwool's insulation business, representing 82% of its net sales showed a solid growth trend throughout 2011. Sales grew by 20% although customers resisted price increases at the start of the year. The increase was predominantly driven by the renovation market, especially in Europe and North America. Sales in Russia were up by 45% year-on-year. Rockwool met this demand with imports from its Polish facilities.
In the US, Rockwool completed an important agreement with the home-improvement chain Lowe's. This has given access to more than 200 stores in north-eastern US, helping Rockwool make the most of this challenging market.
