Turbon Group’s global headquarters in Germany
German remanufacturer blames price competition for continued fall in sales.
OPI reported that aftermarket consumables manufacturer Turbon has recorded double-digit decline for the first nine months of 2013 – a 12.4 percent drop year-on-year, with the company attributing price competition to its falling sales figures.
However, the article states that unfavourable currency exchange rates along with the deconsolidation of Turbon’s subsidiary, Kores Nordic Belgium, at the end of last year accounted for “about half of the decrease”.
Turbon’s earnings before interest and taxes (EBIT) decreased by around 21 percent to €4.5 million ($6 million); which the company asserted was a “solid” performance considering the market conditions, with Turbon highlighting the success of its cost-saving initiatives.
Looking ahead, Turbon’s outlook for full-year sales remained at around €80 million ($107.6 million), with the company maintaining that the fourth quarter would be its strongest for the year, aiming for a pre-tax profit of approximately €5 million ($6.7 million).