Good foundation for positive company economic situation

Leinfelden-Echterdingen, Germany - (rp) Also in 2005 Roto Frank AG remained on course for expansion and in its 70th anniversary year, exceeded the 500 million Euro turnover limit for the first time ever. After a “good start”, the board of directors of the Swabian construction supplier is expecting that the positive development shall continue in 2006. They are concerned however, about the “exploding raw material prices” on international markets. This is especially valid for the important zinc material.

For 2005 Dr. Eckhard Keill reports a net turnover in the company group of 511.9 Million Euro (in comparison to €482.3 million in 2004) and with that, shows a plus of 6.1% in the previous year comparison. According to the chairman of the board of directors, this has resulted from a slight domestic minus and a strong increase in export business. In total, the export turnover now makes up for “in the direction of two thirds” of the turnover. Despite initial tendencies towards improvements in Germany, generally nothing will change “the spread” this year. For 2006 chief financial officer Michael Stangier expects further turnover growth about the same as the previous year’s level: “the first months of 2006 indicate a good trend”.

According to Michael Stangier: despite the company’s pleasing economic situation, the “resolute cost structure optimisation measures” were carried out in the anniversary year. The chief financial officer stressed that this extended to all relevant areas. This however did not entail restricting the innovation and service strength; so decisive in competition, nor “undifferentiated staff cuts”. On the contrary: in 2005, the number of employees in the company group rose according to the figures, by approximately 3% to approximately 3,450. Michael Stangier: although personnel basically remained as it was in Germany, there was a moderate increase in Roto's foreign production-plants and sales organisations.

Two independent divisions

Particularly the development in the architectural hardware technology division was and is moulded by the clear trend towards internationalisation. Most notably Russia, Northeastern Europe, as well as China advanced in 2005 to “prominent growth markets”. Particularly in view of globalisation, the competence to cover all worldwide opening systems in doors and windows is a “high strategic priority”. Establishing new product development processes in the corporate headquarters shall contribute to this as well as the innovative experience-based solutions that ultimately result from these measures.

Eckhard Keill, who also manages the architectural hardware technology division, refers in this case to the numerous Roto innovations at the “fensterbau/frontale”. The most important industry exhibition that took place at the end of March 2006, provided furthermore initial indications of the ten-year-old German building industry “ongoing crisis” fading away slowly. Hope lies primarily in the vast renovation market potential, estimated by investigators at approx. 380 million of the total 540 million window units. Incidentally, Roto’s “systematical innovation offensive” also strengthens the domestic window fabricator’s position. Because of this, the Swabian manufacturer’s main customers can compete better and differentiate themselves better in international competition.

Unlike the hardware side, the building elements division envisages growth impulses in Germany with their product range of roof windows, loft ladders, and solar and photovoltaic conversion systems. Roto shall utilise their “exemplary performance leadership” as well as their strategic product-range cooperations, and their close bonds to specialised dealers and specialist tradesmen, emphasises Erich Rosenkranz. According to the member of the board of directors, withdrawing from the DIY shop business - as announced a few months ago - sent an “extraordinary partnership signal” to the professional clientele. Already now, this step is noticeably positive. In spite of this fact, we naturally want to look after exhausting the international potential “in the same vigorous manner”

Published on the 22nd of June 2006