METTLACH (dpa-AFX) - Due to a downturn in the construction industry in Europe, ceramics manufacturer Villeroy & Boch has lowered its sales and earnings forecast for 2023. Following poorer business in the first half of the year, the company expects sales for the current fiscal year to be three to six percent lower than in the previous year, the company announced on Thursday, based in Mettlach, Saarland. Operating profit (EBIT) is expected to decline by five to ten percent.

The market environment continues to be "characterized by unusually high uncertainty," Villeroy & Boch announced. "This relates above all to the further development of the construction industry and the negative impact of further rising interest rates on the willingness to invest."

According to the statement, consolidated sales fell by 10.7 percent to Euro 437.8 million in the first six months of this year, primarily as a result of the construction industry. At 38.7 million euros, earnings before interest and taxes (Ebit) were 6.3 percent lower than in the same period last year. Net profit fell by 8.2 percent to 25.8 million euros.

In 2022, the family-owned company had sales of 994.5 million euros. Earnings before interest and taxes amounted to 96.8 million euros, with 71.5 million euros below the line./rtt/DP/stw