Danzer reports lower sales in 2019

27 May 2020


Austrian hardwood company, Danzer reported sales of €180m in 2019, an 11% drop from 2018.

The company has identified two main areas to explain the decrease in sales: The closure of It’s flooring production in France; Declining lumber sales out of North America due to the US-China trade war. Danzer aims to focus on areas of business where it maintains a competitive advantage.

44% of Danzer’s 2019 sales originated from sliced products, 33% from sawn timber. The remaining 23% of Danzer’s sales in 2019 were logs, specialties and services. It shipped to 76 countries. Sales to China shrunk by two thirds, mostly due to lower hardwood lumber sales. Sales also decreased in Europe where classic veneer production had been limited to profitable species that could be procured sustainably.

Danzer has now streamlined operations and reduced costs throughout Europe and North America and recently sold off almost all of its forest holdings in North America.

“The latest adjustments have brought Danzer in a strong position to realize our strategy: using technology for a customer-oriented and more efficient use of the valuable hardwood resource; as well as promoting hardwood products and hence use,” said CEO Hans-Joachim Danzer.

“Examples include avoiding waste by slicing instead of sawing; the use of scanners and artificial intelligence to fulfill customer requirements; and the development of new hardwood products with superior decorative or functional characteristics.”

In 2019, Danzer sold more than 150 different hardwoods: 61% North American species, 31% European, 7% African and 1% from other regions in the World. The top 10 species accounted for 83% of sales. Top three selling species were European Oak, American Walnut and American White Oak, followed by Hard Maple, European Ash, American Black Cherry, American Red Oak, Sapelli and American White Ash.