Accumulated net sales figure registered by Vidrala during the first six months of 2011 increased by 4.7% from the same period in the previous year, reaching EUR 219.4 million. Accumulated sales for the second quarter standalone increased by 7.8% comparable with the second quarter in 2010. Higher volumes of sales drove business expansion benefited from the group’s improved market positioning over the most relevant areas of sales in Western Europe. Demand for glass containers in those markets remain showing a moderate upward trend, reflecting current consumer conditions in beverages and foodstuff. Consequently, turnover showed signs of recovery in all regions. Sale prices, normally negotiated annually, contributed to revenue less significantly reflecting variations not fully adapted to manufacturing costs. Overall, turnover reported for the six months reflects record levels, exceeding figures previous to the global economic deterioration. The main operating event occurred during the first six months of the year was the scheduled production stoppage implemented in our Portuguese facility in order to refurbish one of its glass fusion furnaces. Such investment will allow improvements in productivity and energy consumption, enabling new environmental advantages. The works lasted for three months. As a consequence of the above, despite higher levels of capacity utilization over the rest of the operational network, production figures were 1.2% below that of the same period of 2010.The resulting lower absorption of fixed costs and the reduction of the value of inventories caused a dilution effect in operating margins. Yet, manufacturing costs continue suffering increasing inflationary pressures as a consequence of the rise in raw material prices, energy tariffs and general price indexes.
