Germany-based SMS Group has announced that in 2013 its order intake amounted to €3.3 billion, increasing by 16.7 percent compared to the previous year. The results included Paul Wurth for the first time, acquired by SMS Group in 2012.
In 2013, SMS Group registered a pre-tax profit of €178 million, down 31 percent, while the company's sales increased by 7.9 percent to €3.49 billion, both compared to 2012.
"As recently as the beginning of this year, we expected a boost to our business due to our customers' hopes that the steel market had bottomed out. However, due to full capacity utilization, the global industry is still struggling with overcapacities, and the situation has only improved slightly. This in turn depresses the willingness of our customers to invest. Moreover, political uncertainty in our major sales markets Russia, Ukraine, and Venezuela is also disrupting our activities there," the company said in its statement.
Due to these factors, SMS Group expects a slight decrease in order intake in the current year compared to the previous year. In a response to the current market situation, the company is adjusting its capacities, including implementing an extensive cost-cutting program.
