DLH said its European business saw its turnover fall by 23% and predicted difficult and unpredictable market conditions to continue for the rest of 2013. In contracts the global division, focusing on the likes of China and India, increased sales by 16%.
The western European business, including France, Belgium, Germany and the Netherlands, had a first half turnover of DKr217m (2012: DKr290m) and a loss before interest and tax of DKr1m (2012: DKr16m).
DLH said the second quarter showed a more moderate decline compared to a poor Q1. Price pressure combined with steady growth in the low margin sheet materials business saw margins fall to 12%.
Decking was the number one product for DLH in the first half, followed by sawn timber and sheet materials.
China was the biggest customer in DLH’s global business, with a 44% share of the turnover, followed by Vietnam, the Middle East and the US. Logs were the single biggest product area.
