Global economic development slowed significantly in the period under review. The important euro zone markets for Villeroy & Boch are in a recession. Company and consumer confidence has again deteriorated dramatically over recent months as a result of the debt crisis and the continued fragile situation in the European banking sector. Germany, which has seen largely positive development to date, is also suffering from this loss of confidence.
Net revenue on the German market was down 3% year-on-year at €147.6 million. In the same period of the previous year, the Tableware Division achieved a profit from a major order; no similar extraordinary project is planned for this year. Adjusted for this extraordinary transaction, revenue in the third quarter of 2012 was 2.5% higher than in the previous year.
Revenue outside Germany was down slightly year-on-year at €395.7 million (‑1%). This was due in particular to the lower revenue in the Bathroom and Wellness Division in Mexico, with the sale of the plant in Saltillo also representing Villeroy & Boch’s targeted withdrawal from low-margin project business.
The Tableware Division generated revenue of €187.4 million in the period from January to September 2012, down 4% on the previous year. The year-on-year decline in revenue of 11% in Germany in the first half of 2012 was almost fully recovered. There was further revenue growth in Russia (+36%), Austria (+22%) and the USA (+8%). Market development in Australia remains difficult (-7%).
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