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Roto sees growth for 2018

Roto said that it sees growth in the upcoming months

Roto Group sees growth in upcoming months, expecting the increase to be in the mid-single-digit range.

At its recently held 12th International Trade Press Day in Germany to highlight the 2017 market, Roto Group says that it is seeing increased performance, competitiveness and sustainability along with growth heading into 2018.
Roto’s global CEO, Dr. Eckhard Keill, said that the international construction industry is in slightly better shape in 2017. The upswing in the United States, which has been ongoing for several years, is continuing, with an increase expected to be in the mid-single-digit range. In Canada, the recovery of the construction industry was much better than predicted after two weak years.
Keill confirmed continued differentiated development for Latin America. For instance, a renewed positive trend in Argentina is in contrast with a construction industry that is slowing once again in Brazil and Mexico. The head of Roto explained that after drastic losses, the economy in Russia is slowly recovering again. However, continued uncertainty can be felt, meaning that stabilization in residential construction remains fragile. In contrast, China’s construction sector is proving to be the mainstay of general economic growth there.
In Europe, the slight upwards trend is likely to pick up speed. For instance, the Euroconstruct research network is expecting an average construction growth of 3% for its 19 member countries. In addition, it is predicting a total turnover of around EUR 630 million (USD 743 million), which is 1% to 2% above the previous year’s level in a globally consolidated market environment.
CFO Michael Stangier also reported extensive capital investments. As part of a multi-year program, just under EUR  30 million (USD 35 million) was invested mainly in three focal points.
The targeted acquisition strategy also serves to consistently increase performance, competitiveness and sustainability, according to the company. The ability to access finance without problems for all acquisitions is a clear expression of Roto’s economic stability.
The pressure on revenue in the window and door technology division is of crucial importance. This is based on the dramatic increase in the price of raw materials with a lack of availability at the same time. The quotations for zinc have almost doubled since the beginning of 2016, while the increases for aluminium and steel were approximately 40% each.
“If things in the markets remain as they are, we can work well,” Keill said, looking ahead to 2018.
Exceeding the market average was also one of Roto’s objectives . The company says its priority is to create a long-term turnaround of the revenue trend due to the essential price increases.

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