METTLACH (dpa-AFX) - Ceramics manufacturer Villeroy & Boch is increasingly feeling the effects of the weakening economy, particularly in the construction industry. In the first nine months of the financial year, sales and earnings fell significantly, as the company based in Mettlach, Saarland, announced on Friday.

At 650.6 million euros, earnings were 10.7 percent below the previous year's figure. It said this was mainly due to the weak development in Central Europe. "The German economy weakened more than the euro zone in the face of high inflation and weak global economic development," it said.

Earnings before interest and taxes (Ebit) for the first three quarters fell 11.7 percent year-on-year to 56.8 million euros. Due to the worsening economic outlook, the family-owned company had already lowered its forecast for the full year in July. Accordingly, sales are expected to be three to six percent lower than in the previous year, while EBIT is expected to fall by five to ten percent. The forecast will be further narrowed to the lower range, it said.

In 2022, Villeroy & Boch had sales of Euro 994.5 million. Ebit amounted to Euro 96.8 million, with Euro 71.5 million profit below the line. As of September 30, the company had 6080 employees worldwide, a good 300 fewer than a year earlier.

In September, the company had announced its intention to acquire the Belgian faucets and sanitary ware manufacturer Ideal Standard Group. The deal is expected to close in early 2024, subject to regulatory approvals./hus/DP/tih