PDF, 1.2 MB - Pfleiderer AG

32 being focused: being better
171.7
Sales masts BU, USA
in million euros
161.7
02 01
Last year, Pfleiderer sold around
9,000 metric tons of spun concrete
masts, around 150,000 steel mast,
7,500 fibreglass masts, and 29,000
metric tons of steel towers to Germany
and its neighboring states.
In the USA, Pfleiderer sold around
140,000 metric tons of concrete
masts, around 8,800 metric tons of
steel masts and around 25,000 fibreglass
masts.
In the lighting and power transmission masts segments, Pfleiderer has extended its
leading market position in Germany in what remains a stable market. With its wind converter
towers produced in Leipzig, the Masts Business Unit has been able to harness very dynamic
market growth, further strengthening its position as a leading independent supplier.
Pfleiderer is represented in the USA by its affiliate Newmark International Inc. Spread
over eight different sites, this company produces spun concrete, steel and fiberglass poles for
power generators, mobile phone providers and sports stadiums. The latest plant was opened in
October 2002 in Barstow, California in order to cope with increased demand in the southwest
of the USA, as spun masts start to replace the still commonplace wooden poles.
As part of the privatization process in the power generation market in the USA, the regulatory
authorities are promoting the creation of regional networks run by independent utilities.
This will lead to greater competition, and thus higher available capacity and lower electricity
bills for consumers. Newmark International Inc. is profiting from the increased number of
utilities and the higher demands they are placing on companies. Due to the excellent characteristics
of its spun concrete masts (cheaper than steel masts, longer life than wooden poles),
Newmark International Inc. is experiencing increased demand, particularly in the south and
southeast of the USA. Apart from its new plant in Barstow, which has just gone on stream,
Newmark International’s plants are running close to capacity.
Pfleiderer’s steel mast plants in Dinkelsbühl and Regensburg also ran at high capacity
in 2002. The concrete mast plants in Neumarkt and Coswig have profited from greater product
uptake following higher short-term demand for advertising masts. Steel tower production in
Leipzig is primarily aimed at manufacturers of wind converters. Here production ran at full
capacity in 2002.
Production capacity for antenna masts in our spun concrete mast plants was adjusted
because telecommunications providers have postponed setting up UMTS networks. In particular,
lower numbers of freestanding antenna masts were ordered than originally expected.
Thanks to the superiority of its spun concrete technology, Pfleiderer managed to increase
sales in France by nearly 50 percent, in what is seen as a highly competitive market for communications
masts. In Poland, too, market shares in the telecommunications mast sector have
been maintained.
Sales/Orders on Hand
The market for Pfleiderer concrete, steel and fiberglass masts in Germany experienced
stronger overall demand in the wind power sector, and thus for Pfleiderer’s wind towers. This
demand pattern has been favored by public procurement at municipality and city level. This
is largely independent of the economic cycle, with regard to demand for urban street lighting
masts, for example.
Due to high ordering levels of power transmission and lighting masts, as well as towers
for wind converters, Pfleiderer Masts has more than three months’ orders constantly on the
books. Several major projects for airports, power transmission lines and metropolitan railways
ensure that business will continue brightly right up to the end of 2003. In the USA, we expect
ordering to take on a pattern similar to the previous year.
Prices
Manufacturing costs in 2002 were partly affected by higher steel prices, while other production
costs remained largely unchanged. Despite higher competitive pressure, sales prices were
maintained at reasonable levels.