Sanok Ruber expects a continuation of the upward trend in raw material prices and problems with their availability, which means that margins may continue to decline until the end of 2022, announced President Piotr Szamburski.
“We have to get used to the fact that the disruptions in the raw material market will be permanent, and problems with their availability will also become more common. We obtained some of the raw materials, such as soot, from Ukraine, we had to switch to supplies from the West, which were already at 30 -40% more expensive. We have a hard time ahead of us, “Szamburski said during the press conference.
He noted that the worst situation was in the automotive segment, and some progress was visible in other segments. In construction, sales are growing, similarly in industry, and in the segment of mixtures, the prices of raw materials are passed on to customers quite well.
“However, the scale of motorization in the group is such that there is no significant counterbalance to it, and in addition, the remaining segments will also face deteriorating macroeconomic conditions in the near future, for example, we expect considerable wage pressure in the coming months,” added the president.
He admitted that until there is a clear quantitative improvement in the automotive industry, the group will have to fight hard to maintain its position.
“On the basis of the available information, we assume that the trend of increasing revenues and decreasing margins may continue until the end of this year,” assessed Szamburski.
According to him, the crisis in the semiconductor market is still ongoing and today it seems that it will end closer to the end of the year, when new production capacities appear on the market.
Sanok Rubber Company deals with the production of rubber, rubber-metal products and combinations of rubber with other plastics. The company is a producer of rubber compounds with a wide range of products for automotive, construction, agriculture, pharmacy and household appliances. It has been listed on the WSE since 1997. Its consolidated sales revenues reached PLN 1.17 billion in 2021.
Source: Sanok Rubber and ISBnews
