Realignment at Döllken & Praktikus

Döllken & Praktikus GmbH, leading supplier of accessories for flooring and kitchen worktops to the DIY retail trade, intends to streamline its portfolio and promote innovative in-house products as well as supplements to the range that have strong earnings potential. Realignment of the wholly-owned subsidiary company of international high-tech surface group SURTECO AG will focus on products where the company can exploit its long track record of expertise as a manufacturer of skirtings and extruded edgings made of plastic. At the same time, the company will discontinue the sub-ranges that are predicted to generate only unsatisfactory margins over the medium term. This move by Döllken & Praktikus is meeting the consistent desire of the trade to buy directly from the manufacturer. The market is currently under a great deal of pressure and the edging specialist will stimulate the market with creative flair and in-house developments designed to meet specialist requirements. Over recent years, stagnating or declining sales have led to substantial losses on prices and margins across the sector. In the first half of 2006 alone, sales in the sub-range wood/plastic fell by 7.1% in Germany by comparison with the previous year according to the DIY industry market-research panel (GfK-BHB-Panel). At the same time, dramatic price increases in raw materials impacted on earnings. The latest round of consolidations in the German Do-It-Yourself (DIY) sector holds out little hope for an improvement in framework conditions – particularly in the consumer sector. The strategic realignment will enable Döllken & Praktikus GmbH to meet the challenges of the marketplace effectively. Strengthening the company’s profile as a manufacturer of innovative products will undoubtedly also enhance profitability over the long term.