Koninklijke Ten Cate NV : Adjustment to 2012 profit forecast and sharpening of TenCate strategic focus
(Thomson Reuters ONE) -
Highlights
* Continuing uncertain political climate combined with economic conditions has
had a negative effect on government expenditure in 2012.
* Decrease in TenCate revenues of approximately 9% to ? 540 million in the
first six months.
* EBITA for the first half of 2012 approximately ? 32 million (first half of
2011: ? 56 million).
* Expected decrease in revenues in TenCate Defender(TM) M portfolio stronger
than previously expected in the first half of 2012.
* Positive trend in sales in emerging markets.
* Developments at TenCate Advanced Composites, TenCate Geosynthetics and
TenCate Grass in line with expectations.
* Profit forecast for 2012 as a whole reduced due to uncertainties in the
order position for government projects.
* Sharpening of strategy and cost reductions will result in a future positive
effect on EBITA of approximately ? 25 million on an annual basis.
* Prospect for growth remains in force.
(The figures mentioned here are provisional)
General performance for 2012
In anticipation of the publication of the half-year figures on Friday, 27 July,
2012, TenCate is making a downward adjustment to the expected profit trend for
the second half of 2012. This is as a result of the expected further tightening
of government budgets and increasing uncertainty in respect of the timing of
government orders. It is therefore no longer likely that, as announced earlier,
the profit level for 2012 will be at least equivalent to that of 2011. No
further profit forecast will be announced for 2012 as a whole.
TenCate revenues decreased by 9% to ? 540 million during the first half of
2012. This decrease had been partly anticipated. With the exception of the
revenues of TenCate Advanced Armour and the TenCate Defender(TM) M portfolio,
which have thus far shown a decrease of approximately US$ 60 million, the trend
in sales for the first six months of 2012 was in line with expectations.
TenCate announced earlier a decline in revenues within the TenCate Defender(TM)
M portfolio. This trend occurred, however, to a greater degree due to an
unexpected decline in buffer inventories at the US military. TenCate is,
however, involved in new US orders for various army units. The timing and impact
of these on the results for 2012 are at present uncertain.
The sales of TenCate Defender(TM) M outside the US showed a positive trend. In
addition to the countries referred to in the past (Italy, Australia and Norway),
the countries which have now placed orders for TenCate Defender(TM) M include
Canada, India, the Netherlands, Sweden, the United Kingdom, Poland, the Czech
Republic and Brazil. Follow-up orders from these countries are expected. Wearer
trials are furthermore being conducted in more than ten countries. This
development is in line with the international market potential referred to
previously.
Positive developments occurred during the first half of the year at the
aerospace and space composites activities, TenCate Geosynthetics and TenCate
Grass (downstream).
Sharpening of strategic focus
The potential for autonomous growth remains positive. TenCate is involved in a
number of promising developments.
Within the TenCate strategic policy a sharper focus will be brought to bear on
the growth of composites activities (buy & build strategy).
This will also entail exploitation of the innovative products and technologies
developed earlier, in order to accelerate revenue growth partly through
cooperation with international market players.
When sharpening the strategic focus emphasis will also be placed on the
integration of activities and synergy effects. This will involve personnel
reductions. The structural positive effect of cost reductions on the future
operating result (EBITA) is estimated at approximately ? 25 million on an annual
basis.
Royal Ten Cate
Almelo, the Netherlands, Friday 20 July 2012
For further information:
The TenCate half-year figures for 2012 will be published before trading hours on
Friday, 27 July at 08.00 CET. On Friday, 27 July, 2012 the Executive Board press
conference will be held for the media in the Hilton Amsterdam at 10.30 CET. At
11.30 CET the same morning a conference call will take place for the financial
relations of TenCate.
TenCate (corporate)
F.R. Spaan, Corporate Director, Business Development & Investor Relations
Telephone : +31 546 544 977
Mobile : +31 612 96 17 24
E-mail : f.spaan(at)tencate.com
Internet : www.tencate.com
Royal Ten Cate (TenCate) is a multinational company that combines textile
technology with chemical processes and material technology in the development
and production of functional materials with distinctive characteristics. TenCate
products are sold throughout the world.
Systems and materials from TenCate come under four areas of application: safety
and protection; space and aerospace; infrastructure and the environment; sport
and recreation. TenCate occupies leading positions in protective fabrics,
composites for space and aerospace, antiballistics, geosynthetics and synthetic
turf. TenCate is listed on NYSE Euronext (AMX).
Press release as PDF:
http://hugin.info/130798/R/1628201/521269.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Koninklijke Ten Cate NV via Thomson Reuters ONE
[HUG#1628201]
Unternehmensinformation / Kurzprofil:
Datum: 20.07.2012 - 08:01 Uhr
Sprache: Deutsch
News-ID 167196
Anzahl Zeichen: 6402
contact information:
Town:
Almelo
Kategorie:
Business News
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