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QUINN group 1st Quarter Review 2009
The first quarter of 2009 has certainly been a challenging period for the world economy and Ireland in particular. In the last three months, through the outstanding support of our staff and the continued loyalty of our customers, we feel the QUINN-group has risen to meet the challenges, which are clearly unprecedented in our lifetime. By reference to the position outlined by Sean Quinn in his New Year message, we have provided a further update on our trading position in the first quarter.
Although trading levels are down overall, the QUINN-group continues to enjoy superior margins to its competitors. We have resisted the temptation to reduce prices to below economically sustainable levels.
With the infrastructure and product base that has now been established this should increase significantly in 2010. Recent and historical investment in facilities and infrastructure ensure that our manufacturing plants are the most efficient in their class and this in turn has allowed the Group to maintain margins. Combining this efficiency with a continuous refocusing and rebalancing of personnel in response to changing market needs means that all divisions can continue to operate efficiently and profitably.
Sales of cement and related products have reduced by 40% for the first quarter while sales of insulation products, glass and packaging products bolstered by continuing higher than expected exports, have exceeded budget.
QUINN-healthcare
QUINN-healthcare has now reached the 500,000 customer mark in April. + This is an outstanding achievement for all those involved and clearly shows that the public has recognized the clear benefits of switching from VHI. Our superior services have again been highlighted recently with the launch of our cut-price Cervical Cancer jabs for girls aged 12 and over after the Government shelved plans for free vaccinations late last year. In March QUINN-healthcare also sponsored a new report by Headstrong, the National Centre for Youth Mental Health. + This report highlighted the serious mental health issues that young people, are facing in Ireland today, without competent or appropriate adult support. The Company is also sponsoring the development of other new resources by Headstrong. These will focus on mental health, drug and alcohol issues for young people, parents and those working with these groups.
QUINN-glass
QUINN-glass which is the only user of recycled glass containers in Ireland has been continually working to implement improved environmental sustainability initiatives. Working in conjunction with the Waste and Resources Action Programme (WRAP), QUINN-glass recently was featured at the launch of the GlassRite Wine initiative at the WRAP forum in the UK. +
WRAP is a Government sponsored body which helps individuals, businesses and local authorities to reduce waste and recycle more, making better use of resources and helping to tackle climate change. The GlassRite Wine programme is aimed at reducing substantially the carbon emissions associated with the import of wine to the UK and highlights the huge benefits to be achieved through bulk import and local filling thereby utilizing the facility in Elton. Our Sales & Marketing Director for QUINN-glass; Peter Fitzgerald explained the automated filling process in detail and the launch provided an ideal platform for the division to demonstrate the massive efficiencies associated with the technology in the plant and the environmental benefit of the overall model.
QUINN-packaging
Production volumes of fresh meat and dairy product containers have steadily increased in the first quarter with the facility in Cavan now operating at approximately 70% of ultimate capacity. +Of particular interest was the recent award of a major contract to supply meat trays to one of the leading retail meat packers for Tesco in the UK and Ireland. Further new contracts are expected to be confirmed with a large scale poultry packer in the very near future.
The market focus on recycling is also encouraging customers to source packaging that is more environmentally friendly and improved recyclability. This shift has created an increased demand for recycled polyester thin gauge sheeting, which QUINN-packaging specialises in the production of using the latest technology and equipment available in the industry. The Division is also making progress in industrial packaging where it is pleased to announce initial supply of Quinn Strap to a leading brand of peat briquettes.
QUINN-plastics
The plastics division specialises in the manufacture of specialist plastics products for the medical, construction and related markets. Significant investment in the eight European facilities since the acquisition of the Barlo Group plc in 2006 has repositioned the business as a leading international producer.
QUINN-plastics supplied sound barriers for the Hong-Kong Bridge. + A recent major contract, won by QUINN-plastics Mainz, to provide sound barrier material for use on the Tsing Tsuen bridge in Hong Kong is an example of the specialism now possible within the QUINN-plastics facilities. This project will be the first time that XT soft tone plastics will be deployed within Hong Kong for this type of large-scale municipal infrastructure. Notably the investment and commissioning of co-extrusion die technology in Mainz has enabled this market to be captured with no European competitors currently in a position to offer the same product with the desired Matt finish. This is important because sun reflection from soundbarrier walls can typically be a problem for local residents in urban areas. The Matt effect prevents this and therefore is a requirement for virtually all future soundbarrier wall projects in Hong Kong where the installation is close to high rise buildings.
In addition, QUINN-plastics Czech Rep. has in recent weeks extended its supply portfolio to include extruded "Styrenic" based polymers. The introduction of BS and ABS/PMMA sheet products in mono and multilayer structures now completes a range of "Styrenics" products that is unique in Europe. The division has also invested in technology necessary to supply a complete range of GPPS, HIPS/GPPS and ABS/PMMA extruded sheets to the sanitary market also. These latest developments mean multilayer products are being placed in large scale sanitary ware projects (baths, panels, modular systems) in the Czech region with plans to extend to all European sales regions in the months ahead.
QUINN-property opens Q-Park Kazan
The property division was pleased to officially open Phase 1 (88,000m2) of its logistics project in Kazan in the Russian Federation in February. + The official opening was conducted by the Prime Minister of Tatarstan, Mr Rustam N. Minnikhanov. The Prime Minister has been a strong supporter of the Group's investment in Tatarstan with the centre expected to provide employment for over 2,000 people when fully operational. Q-Park has already attracted interest from many large international players such as Schneider, McDonalds and Michelin already having agreed lease terms. The opening represents another success from the division and follows the recent openings of other property assets in Eastern Europe including the Kutozoff Tower office block in Moscow, and the Leonardo office centre and Univermag Shopping Centre in Kiev among others in Central Europe and India. Despite the downturn the Group continues to have high expectations about future investments in Russia, Eastern Europe and India.
QUINN-hotels
The Hotel & Leisure division of the Group has continued to trade positively albeit average consumer spend has reduced for the first quarter as anticipated. In Ireland, the recognised brand quality of the Slieve Russell and enhanced Spa facilities have ensured that demand has been sustained and in the UK, recent improvements and modernization of the Brabazon and Derby courses have benefited the trading position of the Belfry.
At an international level, the Hilton in Prague has this weekend hosted the presidential visit of President Barack Obama and First Lady Michelle Obama on their official visit to the Czech capital, In February, the Sheraton in Krakow hosted the NATO Defense Ministers' conference. Successfully catering for events of this magnitude has obvious knock-on business benefits for the division in terms of PR and future service opportunities.
YouTube
In a further development of its online presence QUINN-group has launched its official site on YouTube.+ We have recognized the growing popularity and commercial necessity of online digital presentation and in March set up a channel on the popular video sharing website. As well as being available through our own website, a variety of video content will be conveniently viewable through the QUINN-group YouTube channel including interviews, corporate videos and TV adverts.
Wine Relief & Red Nose Day at QUINN-glass, Elton
Red Nose Day took place across the UK on Friday 13th March this year involving QUINN-glass in a big way. + This year 'Wine Relief' formed part of the campaign set out to raise money to fund projects helping the disadvantaged in both Africa and the UK. To date Wine Relief has raised almost £900,000. QUINN-glass was privileged to be part of this fundraising effort. The Red Nose red and white wines were both filled at our plant in Elton in Cheshire with the bottles made on site. As well as assisting in the raising of much needed funds the opportunity to showcase the unique manufacture and filling capabilities at Elton on national television across the UK was very positive for the company.
We again thank all of our 1.3m customers and 8,000 staff for their continued support. We have concentrated our energies on maintaining our margins and profitably, which has enabled us to grow the businesses on which our employees depend.
09 Apr 2009
