Furnace Builder Achieves Record Sales and Profit
“2022 was a difficult year for global geopolitics and the economy. Despite this, SECO/WARWICK, the first choice among manufacturers of metal heat treatment and vacuum metallurgy furnaces, can talk about an excellent year. The great results of the Group were influenced by several factors: the growth of production activities in China, dynamic market development in America, and the huge number of orders related to the electromobility industry expansion. In the first three quarters of 2022, the company had over 100 % more profit than in the previous year, and sales revenues amounted to PLN 448.87 million in this period (PLN 335.09 million in 2021).
The Group’s financial results prove how good this year was for SECO/WARWICK. At a time when the world was plunged into chaos and a deep economic crisis, SECO/WARWICK recorded record profits. The first three quarters of 2022 brought an increase in sales by 34% y/y, with a sales gross margin higher by 1 percentage point (22.9% in the reporting period). The higher sales value reflected the Group’s order book condition. The largest sales increase was recorded by the Vacuum Furnace segment (52%). The segment of furnaces for aluminum heat treatment and brazing – Aluminum Process – showed higher sales by 49% compared to the previous year’s corresponding period, and the segment of melting furnaces was up by +3%. Aftersales (spare parts and service) increased by 36%.
“Our results support current macroeconomic trends which have changed the way customers view supply chains. Primarily in the USA in the titanium processing area. In connection with the pandemic period experience, the war in Ukraine and the tense situation between the USA and China, manufacturers want to secure the acquisition of titanium for the products intended for the aviation market, and this means that we are gaining more and more orders from North America. Such reshoring, in other words, moving production back to Western Europe and the USA, is of great importance to us. Another direction supporting our results is electromobility – the Chinese subsidiary sells equipment for heat exchanger production to markets around the world. Electromobility is a very strong trend, and, despite the crisis, this direction is not changing. Currently, thanks to this trend, a noticeable part of our margin comes from China,” said Sławomir Woźniak, CEO of SECO/WARWICK Group.
For SECO/WARWICK, 2023 will be the year of American companies. The SECO/WARWICK Group boasts customers in 70 countries, while the American branch – SECO/VACUUM – serves 125 customers, after only five years of operation! Development also means the need to hire additional engineering and production personnel and the need to increase production capacity, hence the company’s move to a new headquarters with 50% more office space and 300% more hall space. The second American company belonging to the Group – RETECH, which will celebrate its 60th birthday next year, has delivered and commissioned many vacuum metallurgy equipment projects during the last year, mainly VIM, VAR, PAM solutions and furnaces using a consumable electrode. In turn, the third American company focused on the service and sale of products from the atmospheric furnace segment, including aluminum process and CAB, increased sales under the leadership of the new managing director – Marcus Lord. Last month, the company won a significant contract for a furnace renovation at the U.S. Mint, and a key contract for an aluminum melting furnace project.
“Undoubtedly, the VIM furnace, one of the most popular products in the Retech vacuum metallurgy portfolio, has contributed to our success. There is also interest in modern technologies, such as the PAM furnace, of which Retech is the undisputed market leader. The Group’s key step on the American market will be the start of vacuum furnace production and the needs of our partners for titanium melting furnaces. Titanium processing is currently the second most important industry for us,” explains S. Woźniak.”
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