Dutch processing equipment provider Stork has announced that its net second quarter profitability has grown to €19 million, compared to €14 million in the comparable quarter, although business in its poultry and food processing equipment division was reported to be under intense competition.

Net profit results for the whole group were similarly good, with figures leaping from €17 million in the first half of 2002 to €36 million in the same period for 2003.

The company said that a cost savings programme that it introduced last year had reaped rewards for the company and that the benefits had counteracted the effects of a weakened economy in both the US and Europe. However, orders received and the actual turnover for the company were down when compared to the first six months of last year.

The company added that because of the volatility of the worldwide market it was difficult to predict what its performance would be like in the next year, however it did indicate that tough times were expected to continue for its poultry and food processing division.

Revenue from food equipment crept up from €65 million in the first half of 2002 to €67 million for the same period in 2003. However the company's EBIT results for the division in that same period showed a fall from €5 million in 2002 to €4 million in 2003. This, the company said, reflects the current competitiveness of the market with regards to pricing and a weakness in demand for convenience foods.

CEO Sjoerd Vollebregt commented: "In the second quarter, as in the first quarter, we have further improved our profitability and by doing so have achieved a good first half year. The measures we have taken have strengthened the basis for profitability. Our divisions have won several attractive, long-term orders in the past half year, and successful product introductions have been made."

"However the economic climate remains poor and difficult to predict. We will therefore continue to work on further cost control, and additional measures can certainly not be ruled out. We expect a positive result for the second half of the year, although this does not mean that the profit levels of the first two quarters will automatically be matched," he continued.

The Stork Group comprises the poultry and food processing division, print, aerospace, industrial components and technical services. In 2002 the group achieved total sales of €2.1 billion and employed 16,000 staff.