MILAN—Manuli Rubber Industries S.p.A. (MRI) is operating "under full crisis mode" and believes the next 12 months are likely to be the most challenging since the 2008 financial crisis.
Following two years of COVID-19 effects, a new war in Europe "will not make things any easier," the Italian rubber company said in a March 31 financial statement.
An added challenge is that, amid all the instability, MRI is still in the process of integrating RYCO Hydraulics Pty. Ltd., acquired just as the pandemic reached Europe.
As announced in February 2020, the combined MRI-RYCO business will be a global hose and fittings "leader" with projected revenues of almost $550 million and 4,500 employees.
On another positive note, MRI said demand had been strong in the first three months of 2022 and is "still cautiously optimistic" that sales will hold up for the rest of the year.
For 2021 MRI posted a 35.6-percent year-on-year rise in consolidated operating profit (EBIT) to $52.9 million, on sales 16.4 percent higher at $520 million.
The higher earnings were driven by increased sales volumes and pricing, which offset significant rises in operating costs, noted the Italian group's financial release.