Germany-based plantmaker SMS Group has announced that in 2015 its order intake declined by 13 percent to €2.76 billion, while the company's sales amounted to €3.3 billion, down 2.9 percent, both compared to the previous year.
In 2015, SMS Group registered a pre-tax profit of €7 million compared to the pre-tax profit of €31 million in 2014, due to the generally weak market and costs for restructuring. Meanwhile, the company generated orders for metallurgical plant and machinery construction totaling €2.47 billion, decreasing by 15.2 percent year on year.
SMS Group expects order intake in the current year to remain at the same level as last year, and because of declining orders in hand the company expects its sales to be lower.
"Due to worldwide overcapacities, our customers remain unwilling to invest in new plants. What is more, ongoing political uncertainty in our important sales markets Russia and Ukraine is also damaging business. Looking on the brighter side, the gradual opening up of Iran offers opportunities for us to support the modernization and rebuilding of the country's steel industry in the near future. In fact, we have already signed letters of intent for projects collectively worth more than € 1 billion. Plus, we have just founded a joint venture with an Iranian company in the field of technical service and repairs,” stated Burkhard Dahmen, chairman of the managing board of SMS Group.