Steico predicts €4.4-6m annual net profits

German wood fibre insulation and I-joist manufacturer Steico AG has indicated it expects to earn a €4.4-6m net profit in 2010.

The group sales are expected to reach €135-145m, with full results to be released in April on publication of the annual report.

Steico is predicting increased net profits of €6-7.5m and sales of €148-158m for 2011.

It is also looking to develop a further production site and look at acquisitions to secure growth, though these are not envisaged during 2011.

The group said sales of wood fibre insulation grew significantly in 2010, though the early onset of winter did curb the positive trend.

The closure of an unprofitable hardboard production facility means annual revenue will be slightly less than previously forecast.

Steico’s management board predicts continued growth in 2011, driven by economic recovery, ever-stricter statutory requirements governing energy-efficiency for buildings and the trend towards natural building products.

It predicts strong demand for its core wood fibre insulation business, with structural products also expected to make a greater contribution to growth.

Wood raw material and energy are expected to become more expensive. Steico says it will compensate for this by continued rationalisation measures and adjustments to selling prices.