Germany-based plantmaker SMS Group has announced that its orders received in 2009 declined by 55.73 percent year on year, totaling €2.34 billion. However, due to the processing of orders still in hand from the boom years, the group's sales increased by 8.05 percent to €3.89 billion, while its profit before tax amounted to €234 million, up from €205 million in 2008.
"As a result of the recession, our customers are in no mood to invest, and so we are seeing a significant drop in order intake," said SMS Group chairman Dr. Heinrich
Weiss, adding that he sees no signs of a sustained recovery in the markets yet.
Further commenting on the 2010 outlook Dr. Weiss said, "We expect a gradual recovery
of our markets in the second half of 2010. Looking at the regional picture, India and China will remain the most important markets. India managed to continue growing almost unchecked through the economic crisis, and it will steadily expand its steel industry in the coming years. We believe demand from China will increase only slowly. There is new market potential in Central and South America and in the Middle East."
In 2009, SMS Meer, the group's tube and pipe rolling mills, long product rolling mills provider subsidiary, posted better results as compared to the group's flat steel plant supplier subsidiary SMS Siemag.