Uponor withdraws from Asia
Uponor Corporation Stock exchange release 13 December 2018 07:00 EET
Uponor withdraws from Asia
In alignment with its strategy to focus on profitable growth in core businesses throughout Europe and North America, Uponor has decided to cease operations in Asia during 2019. This includes operations in China, as well as sales offices in South Korea, Hong Kong and Malaysia. Currently, Uponor employs approximately 80 in the region.
Uponor’s operations in China began in 2010, initially as an export business offering indoor climate solutions projects. In 2016, the company opened its manufacturing facility in Taicang to produce plumbing solutions for growth markets throughout the region.
Over the past eight years, Uponor has been unable to establish a customer base for its mix of premium products in markets primarily driven by low-cost offerings. As a result, the company’s Asian operations have not met set growth targets, and the business has not been profitable.
The Asian operations have been reported as part of the Building Solutions – Europe segment. In 2017, net sales of these operations were 8.3 million euros with an operating profit of -2.6 million euros. In 1-9/2018, net sales were 6.9 million euros with an operating profit of -2.8 million euros. The estimated ramp down impact is approximately -6 million euros and will be reported in Uponor’s Q4/2018 result as items affecting comparability (IAC).
The table below illustrates Uponor Group net sales and operating profit for 2017 and 2018, excluding its Asian operations or previously announced divestment of German Zent-Frenger and Uponor Infra North American business.
| Net sales, M€ | 1-9 2018 | 7-9 2018 | 4-6 2018 | 1-3 2018 | 1-12 2017 | 10-12 2017 | 7-9 2017 | 4-6 2017 | 1-3 2017 |
| Building solutions - Europe, excl. ZF & Asia | 369.6 | 121.8 | 128.9 | 118.9 | 486.1 | 116.5 | 126.2 | 126.4 | 117.0 |
| Building solutions - North America | 250.0 | 88.9 | 83.5 | 77.6 | 328.2 | 79.5 | 91.2 | 79.3 | 78.2 |
| Uponor Infra, excl. Uponor Infra NA | 205.4 | 73.7 | 78.1 | 53.6 | 243.7 | 57.3 | 65.9 | 71.7 | 48.8 |
| Eliminations | -4.0 | -1.4 | -1.4 | -1.2 | -2.9 | -1.0 | -0.6 | -0.8 | -0.5 |
| Uponor Group, excl. Uponor Infra NA, ZF & Asia | 821.0 | 283.0 | 289.1 | 248.9 | 1,055.1 | 252.3 | 282.7 | 276.6 | 243.5 |
| Operating profit, M€ | 1-9 2018 | 7-9 2018 | 4-6 2018 | 1-3 2018 | 1-12 2017 | 10-12 2017 | 7-9 2017 | 4-6 2017 | 1-3 2017 |
| Building solutions - Europe, excl. ZF & Asia | 28.1 | 9.4 | 11.2 | 7.5 | 40.6 | 10.4 | 14.3 | 9.1 | 6.8 |
| Building solutions - North America | 32.9 | 13.9 | 8.8 | 10.2 | 49.7 | 9.6 | 19.0 | 10.5 | 10.6 |
| Uponor Infra, excl. Uponor Infra NA | 20.7 | 16.5 | 5.2 | -1.0 | 0.1 | -3.2 | 2.7 | 2.8 | -2.2 |
| Others | -4.0 | -1.7 | -1.3 | -1.0 | -4.2 | -2.5 | 0.2 | -1.0 | -0.9 |
| Eliminations | -0.6 | 1.5 | -0.6 | -1.5 | -1.6 | -1.1 | -0.6 | -0.4 | 0.5 |
| Uponor Group, excl. Uponor Infra NA, ZF & Asia | 77.1 | 39.6 | 23.3 | 14.2 | 84.6 | 13.2 | 35.6 | 21.0 | 14.8 |
| Comparable operating profit, M€ | 1-9 2018 | 7-9 2018 | 4-6 2018 | 1-3 2018 | 1-12 2017 | 10-12 2017 | 7-9 2017 | 4-6 2017 | 1-3 2017 |
| Building solutions - Europe, excl. ZF & Asia | 29.5 | 10.8 | 11.2 | 7.5 | 43.4 | 10.4 | 14.3 | 11.5 | 7.2 |
| Building solutions - North America | 32.9 | 13.9 | 8.8 | 10.2 | 49.7 | 9.6 | 19.0 | 10.5 | 10.6 |
| Uponor Infra, excl. Uponor Infra NA | 8.5 | 4.3 | 5.2 | -1.0 | -1.4 | -3.2 | 2.7 | 1.3 | -2.2 |
| Others | -4.0 | -1.7 | -1.3 | -1.0 | -4.2 | -2.5 | 0.2 | -1.0 | -0.9 |
| Eliminations | -0.6 | 1.5 | -0.6 | -1.5 | -1.6 | -1.1 | -0.6 | -0.4 | 0.5 |
| Uponor Group, excl. Uponor Infra NA, ZF & Asia | 66.3 | 28.8 | 23.3 | 14.2 | 85.9 | 13.2 | 35.6 | 21.9 | 15.2 |
Uponor Corporation
Susanna Inkinen
Vice President, Communications and Corporate Responsibility
Tel. +358 20 129 2081
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Nasdaq Helsinki
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www.uponor.com
www.investors.uponor.com
Uponor in brief
The year 2018 marks Uponor's 100-year anniversary. Our success is built on strong partnerships with our customers and stakeholders in the past, present and future.
Uponor is a leading international systems and solutions provider for safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure. The company serves a variety of building markets including residential, commercial, industrial and civil engineering. Uponor employs about 4,000 employees in 30 countries, mainly in Europe and North America. In 2017, Uponor's net sales totalled nearly €1.2 billion. Uponor is based in Finland and listed on Nasdaq Helsinki. Uponor builds on you - www.uponor.com