First Trading Update 2009
Date:
May 19, 2009
Active trading and margins remain at high level
Current performance first quarter
In the first quarter 2009 we saw very active trading and the group was profitable. World economies have entered into a long and severe recession. Although the food industry is traditionally less cyclical, we note a slowdown in sales. The substantially lower prices of many products also affect the reported turnovers. Consolidated margins, however, remained at a high level.
Sharp decline in the demand for rubber
RCA (non-consolidated participation) saw a very sharp decline in the demand for rubber by the (automotive) tyre industry in Europe and America. China on the other hand continued to buy large quantities of strategic raw materials at low prices. International rubber prices remained volatile but still note more than 50% under the record levels of 2008. A prolonged period of weaker demand and low prices, combined with less volatility can negatively affect the levels of sales and profits.
Confidence in the talent of our trading teams
It is not possible to make any forecast about the further development of trading activities and the results of the group in 2009. Management and supervisory directors have, however, confidence in the talent of our trading teams to make good use of trading opportunities and to trade profitably in both upward as well as downward markets.
The Supervisory Board and management
In the first quarter 2009 we saw very active trading and the group was profitable. World economies have entered into a long and severe recession. Although the food industry is traditionally less cyclical, we note a slowdown in sales. The substantially lower prices of many products also affect the reported turnovers. Consolidated margins, however, remained at a high level.
Sharp decline in the demand for rubber
RCA (non-consolidated participation) saw a very sharp decline in the demand for rubber by the (automotive) tyre industry in Europe and America. China on the other hand continued to buy large quantities of strategic raw materials at low prices. International rubber prices remained volatile but still note more than 50% under the record levels of 2008. A prolonged period of weaker demand and low prices, combined with less volatility can negatively affect the levels of sales and profits.
Confidence in the talent of our trading teams
It is not possible to make any forecast about the further development of trading activities and the results of the group in 2009. Management and supervisory directors have, however, confidence in the talent of our trading teams to make good use of trading opportunities and to trade profitably in both upward as well as downward markets.
The Supervisory Board and management
