Marel forecasts improved poultry profits in 2014
International poultry processing equipment company Marel, has reported a slight downturn in revenue in its Q1 2014 results. Revenue for Q1 2014 totaled 154.8m, in Q1 2013 this was 158m.
The company attributes a lower than usual operating profit in the poultry segment to underutilization in manufacturing and projects taken on in a difficult market environment during 2013. Poultry is expected to show improved profitability in Q2 however, based on the current order book.
The refocusing plan of becoming simpler, smarter and faster was launched in the beginning of the year and is proceeding according to plan, the company said in a statement. The plan's objective is to serve customers' needs more effectively and to reduce the annual cost base by 20-25 million. Annual cost savings that have already been achieved in Q1 amount to annual cost 3.6 million.
"Marel sales are 155 million in first quarter with an adjusted EBIT of 4.6 million that is below potential," said Arni Oddur Thordarson, CEO. "Our refocusing plan, which was launched in beginning of the year is proceeding according to plan. During the first quarter we have achieved cost savings initiatives that lower our cost base by 3.6 million annually.
"In the poultry industry we introduced the RoboBatcher and the SensorX SmartSort. At the same time we are excited about the FleXicut, which will revolutionise whitefish processing.
"As stated in the beginning of the year, we believe that profitability will improve over the course of the year. Our most promising markets in the short term are the US and South America. Expansion and modernization needs are building up there and Marel is well placed to capitalize on these opportunities. However, the sentiment in Europe is affected by current geopolitical tension. Despite market volatility in emerging economies during Q1, long-term outlook remains robust".
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