German machine makers post 85% H1 order gain

ERJ staff report (PRW)

Frankfurt, germany -- German plastics and rubber machinery makers posted an 85 percent increase in orders for the first half of 2010, according to the latest data from the sector's representation group within the VDMA German machinery makers association.

“No one could have foreseen the 85 percent jump in orders recorded by the industry in the first six months of the year; it is a truly remarkable performance that gives grounds for optimism,” said Ulrich Reifenhäuser, chairman of the VDMA Plastics and Rubber Machinery Association in a statement released yesterday.

Orders from within Germany were up by 26 percent, while demand from export markets grew by 117 percent. The Euro-zone economies posted a 51 percent gain. Order books have now filled out to 6.3 months, compared to just four months at the same time last year, said the VDMA.

“The rapid growth achieved, albeit from last year's extremely low base, bears witness to a tremendous dynamism and success rate in the industry,” said Reifenhäuser.

While orders are up overall sales for the period from January to June 2010 are lagging 3 percent below the previous year's total, which the VDMA attributes to a relatively high level of domestic sales in the first half of 2009 (23 percent down against a 7 percent increase in export sales).

The association is predicting that the rise in order intake during the first half of this year will see the sector achieve sales growth of 11 percent by the end of the year.

Reifenhäuser said the improving economic conditions present the “ideal scenario” for the K fair in Dusseldorf later this year, which has traditionally been the sector's biggest shop window.

“German manufacturers are looking [to the K fair] for confirmation that the growth rates of the last few months are not simply the result of pent-up demand but reflect a solid volume of business that is set to stabilise based on regional cycles,” he said.

Meanwhile, the German VCI chemical industry association has reported that its members increased sales by 5.2 percent, quarter on quarter.

Revenue rose to Euro 41.6bn in the three months to June. According to the association's data, production was up 1.5 percent while capacity usage rose by 2.8 percent to 85.6 percent, principally as a result of increased demand amongst the sector's industrial customers in Germany and more widely.

The VCI said it expects full-year figures to show an 11 percent rise in production and an 18 percent jump in revenues, although market conditions are expected to quieten a little after the rush to restock to meet returning end-user demand comes to an end, it predicted.

From PRW.com (A Crain publication)

Press release from VDMA