Koninklijke Ten Cate NV : Decrease in TenCate profit due mainly to contraction of US defence market
(Thomson Reuters ONE) -
Highlights of 2012
· Decrease in revenues of 8% to ?1,049 million (autonomous -15%).
· Normalized EBITA: ?60 million; ?8 million non-recurring expenses, mainly
in the 4th quarter.
· EBITA: ?52.0 million (autonomous -53%).
· Net profit ?22.3 million (autonomous -63%); normalized net profit ?27.6
million.
· Number of FTEs reduced by 350 since May 2012.
· Free cash flow rises from -?9 million to +?68 million.
· Interest-bearing debt decreased by approximately ?60 million to ?230
million.
· Debt ratio 2.55 (2011: 2.12).
· Advanced Textiles & Composites sector: substantial decrease in revenues
and result due mainly to contraction of the US defence market.
· Geosynthetics & Grass sector: EBITA rose by ?5 million (+20%) with
revenues remaining virtually unchanged.
· Dividend proposal: ?0.50 per share (pay-out 58%), in cash or as a stock
dividend at shareholder's discretion (2011: ?0.95 per share, stock dividend
option).
Key figures for 2012
+------------------------------------+---------+---------+
| Key figures for 2012 x ?1 million | 2012 | 2011 |
+------------------------------------+---------+---------+
| Net revenues | 1,049.0 | 1,138.8 |
+------------------------------------+---------+---------+
| Normalized EBITA | 60.0 | 102.5 |
+------------------------------------+---------+---------+
| EBITA | 52.0 | 102.5 |
+------------------------------------+---------+---------+
| EBITA margin | 5.0% | 9.0% |
+------------------------------------+---------+---------+
| Net profit | 22.3 | 58.7 |
+------------------------------------+---------+---------+
| Data per share (?) | | |
+------------------------------------+---------+---------+
| Net profit | 0.86 | 2.31 |
+------------------------------------+---------+---------+
| Dividend | 0.50 | 0.95 |
+------------------------------------+---------+---------+
| Other information | | |
+------------------------------------+---------+---------+
| Free cash flow | 68.4 | -8.5 |
+------------------------------------+---------+---------+
| Interest bearing debt | 229.9 | 288.7 |
+------------------------------------+---------+---------+
| Debt ratio | 2.55 | 2.12 |
+------------------------------------+---------+---------+
Loek de Vries, President and CEO: 'The unexpectedly sharp decrease in sales in
the US defence market resulted in a significant reduction in the sales of
TenCate Defender(TM) M and the armour portfolio. TenCate has continually based
its outlook on forecasts from the US defence authorities, who displayed
increasing reticence, partly in view of the US presidential elections and the
threat of the fiscal cliff. This had a major impact on the performance of the
group as a whole. The US defence market represents a large proportion of total
revenues.
Good progress was recorded in the other key markets where TenCate, on the basis
of its buy & build strategy, seeks to promote itself, such as the markets for
industrial safety fabrics and composite materials, as well as emerging markets.
This occurred both through autonomous growth and by means of acquisitions,
including Amber Composites, which was completed at the beginning of 2013.
The autonomous decrease in revenues of on balance approximately ?168 million was
such that, despite the implementation of cost reductions, a substantial decrease
in profit resulted.
Since May 2012 the workforce has been reduced by approximately 350 FTEs. This
resulted in a reduction in labour costs of approximately ?7 million in the
second half of the year.
As the result of increased market dynamics, the policy was further refined and
in the fourth quarter non-recurring provisions were made for an amount of on
balance ?8 million.
Leading market positions were retained. TenCate has trendsetting products.
Safety and protection continue to be the focus of attention worldwide, and
consequently confidence is maintained in the future recovery of revenues and
profitability.'
Annual figures for 2012
The revenues for 2012 amounted to ?1,049 million (2011: ?1,139 million). In
autonomous terms revenues decreased by 15% (currency effect +5%; effect of
acquisitions / divestments +2%).
The operating result before the amortization of intangible assets (EBITA)
decreased in 2012 by 49% to ?52 million (autonomous -53%; currency effect +3%;
acquisitions / divestments +1%). This includes an amount of approximately ?8.0
million in non-recurring expenses. The normalized EBITA for 2012 amounted to
?60.0 million.
The net profit for 2012 decreased by 62% to ?22.3 million (2011: ?58.7 million).
Net earnings per share amounted to ?0.86 (2011: ?2.31).
Advanced Textiles & Composites Sector
The revenues of the Advanced Textiles & Composites sector decreased by ?78
million to ?461 million (autonomous -21%). Due in part to the loss of high-grade
US defence revenues amounting to approximately US $130 million, the operating
result (EBITA) of this sector decreased to ?23.5 million (2011: ?70.3 million).
The autonomous decrease amounted to 70%.
The demand in Europe for safety fabrics for industrial end-users was in line
with the decreased level of activity in the industry. In the police and fire
fighting market, which is a relatively new market for TenCate Protective Fabrics
EMEA, important reference projects were secured. The US fire fighting market was
cautious.
As a result of the postponements and delays of projects for vehicle armouring,
sales in the market decreased during 2012 principally in the US. In Europe
activities relating to armour for aerospace applications developed favourably,
which had a positive effect on the overall performance of the European armour
division.
Space / aerospace activities showed a positive picture. In Europe, however, a
temporary delay occurred in deliveries to the Airbus A350 programme.
In the course of 2012 the first steps were taken to develop the Chinese
aerospace market. The first successful contacts were made for participation in
future aerospace projects.
A start was made on expanding activities relating to composite materials for
industrial applications. The acquisition of PMC Baycomp strengthened the
position of TenCate Advanced Composites in the market for industrial composites.
Geosynthetics & Grass Sector
Revenues in the Geosynthetics & Grass sector remained, at ?519 million, at a
similar level to that of 2011 (autonomous -8%). The operating result of the
Geosynthetics & Grass sector rose by in excess of ?5 million to ?31.5 million
(autonomous +10%).
In the second half of the year there was a weakening of demand at TenCate
Geosynthetics, In the US revenues decreased by 16% on an autonomous basis in
2012. In Asia slight autonomous growth was achieved. Despite this unfavourable
market trend, the results within the Geosynthetics group continued to stand out
positively, thanks to good monitoring of costs and margins.
The cost measures taken within the Grass group also made a positive contribution
to the trend in results.
The southern European synthetic turf market was under pressure from reduced
government expenditure. Growth in revenues was achieved in the market activities
allied to TenCate for synthetic turf sports systems. Woven synthetic turf
systems were well received by the market. This technology offers considerable
advantages in both quality and playing characteristics and has a positive effect
on the service life of sports pitches.
TenCate Grass, through GreenFields, will also enter the market for hybrid
systems (natural grass / synthetic turf) under the brand name Xtragrass. A
number of reference pitches have already been installed.
Other activities
At the Other activities (TenCate Enbi, Xennia Technology and Holding & Services)
revenues decreased by 6% to ?69.7 million. EBITA amounted to -?3.0 million.
TenCate Enbi displayed a stable trend in revenues. In Europe, and in Asia in
particular, growth was achieved. The volume of sales for leading Asian OEMs
developed favourably.
At Xennia Technology Ltd (79%) a strategic reorientation took place, as a result
of a disappointing performance. Furthermore, the level of costs was reduced.
Explanation of normalized result
The balance of non-recurring costs and income amounted to -?8.0 million. This
amount related to the intention to discontinue production in Thailand (-?3.0
million), a downward revaluation within the TenCate Defender(TM) M inventory (-
?3.0 million), as well as adjustments at Xennia Technology (-?2.7 million). In
addition, reorganization provisions were made, amounting to a total of ?2.6
million. The adjustment to the pension regulations had a non-recurring positive
effect of ?3.3 million.
On the basis of this the normalized EBITA for 2012 amounted to ?60 million.
General performance in the second half of 2012
+-------------------------------------------+-------+-------+------+------+
|2nd half of 2012 x ?1 million |H2 2012|H2 2011|2012 |2011 |
+-------------------------------------------+-------+-------+------+------+
|Net revenues |509.4 |546.4 |1049.0|1138.8|
+-------------------------------------------+-------+-------+------+------+
|Normalized EBITA | | |60.0 |102.5 |
+-------------------------------------------+-------+-------+------+------+
|EBITA |19.7 |46.4 |52.0 |102.5 |
+-------------------------------------------+-------+-------+------+------+
|EBITA margin |3.9% |8.5% |5.0% |9.0% |
+-------------------------------------------+-------+-------+------+------+
|Net revenues Advanced Textiles & Composites|219.7 |248.9 |460.6 |538.4 |
+-------------------------------------------+-------+-------+------+------+
|Net revenues Geosynthetics & Grass |257.0 |258.3 |518.7 |525.9 |
+-------------------------------------------+-------+-------+------+------+
|EBITA Advanced Textiles & Composites |4.5 |29.1 |23.5 |70.3 |
+-------------------------------------------+-------+-------+------+------+
|EBITA Geosyntheics & Grass |15.7 |12.4 |31.5 |26.3 |
+-------------------------------------------+-------+-------+------+------+
The revenues for the second half of 2012 amounted to ?509.4 million (-7%). The
autonomous change in revenues in the second half of the year amounted to -13%.
The currency effect was +5%.
The Advanced Textiles & Composites sector and the Geosynthetics & Grass sector
recorded an autonomous change in revenues of -19% and -6% respectively in the
second half of the year.
The operating result before the amortization of intangible assets (EBITA)
decreased by ?26.7 million compared with the second half of 2011. The non-
recurring items reported earlier should be taken into consideration here. The
autonomous decrease amounted to -60%; the currency effect was +2%. The EBITA
margin in the second half of 2012 amounted to 3.9%.
The Advanced Textiles & Composites sector and the Geosynthetics & Grass sector
recorded an autonomous change in EBITA of -87% and +21% respectively in the
second half of 2012.
Net profit for the second half of 2012 amounted to ?7.6 million (2011: ?25.6
million).
Other financial information
Total investments amounted to ?16.6 million (2011: ?25.7 million). The major
investment (?4 million) related to the development of the TenCate ABDS(TM)
active blast countermeasure system (protection against roadside bombs). Of the
total investments, more than half related to innovations.
The net interest-bearing debt amounted to ?230 million at the end of 2012 (2011:
?289 million). The autonomous decrease in the debt position amounted to ?58
million. A large portion of this was the result of a decline in working capital.
The debt ratio at the end of 2012 (debt / EBITDA ratio) improved from 2.74 (at
the end of June) to 2.55 (2011: 2.12).
The tax rate rose to 34% (2011: 24%). This increase compared with 2011 is mainly
the result of the increase in losses in countries where no full deferred tax
asset is recognized. The normalized tax rate amounted to 28%.
Since May 2012 the workforce has decreased by approximately 350 FTEs. The
greatest changes occurred at the Grass group, the Geosynthetics group and the
Advanced Armour group.
Dividend proposal
It is proposed to set the dividend for 2012 at ?0.50 per ?2.50 par value share
(pay-out 58%). This means a deviation from the usual pay-out percentage of 40%,
in accordance with the communicated dividend policy.
Underpinning this dividend proposal are the expectations of the company's
continued growth in the longer term and confidence, which is based on the
leading market positions that TenCate occupies. The dividend will be payable at
shareholders' discretion either in cash or in shares charged to the share
premium reserve.
Outlook
There is uncertainty about the further effects of the governmental budgetary
measures that will be taken in the United States of America. The outcome of this
process will also be of significance for the trend in revenues of TenCate. In
the short term European governments too are expected to remain cautious in the
expenditure of public funds.
The market themes on which TenCate focuses and which are primarily related to
people's safety, the protection of their living environment and the theme of
sustainability, however, continue to be very topical. This opens up
opportunities for TenCate.
In 2013 the marketing of safety fabrics in Asia will be restructured. TenCate
will thereby strongly position its successful TenCate Tecasafe(TM) Plus
portfolio and other products for the industrial market, in order to boost sales
in Asia. As a result of this, the Thai joint venture will be closed down.
In mid-2012 a refining of the strategy was announced. TenCate intensified its
focus on the development of industrial markets, such as protective clothing for
industrial use, the automotive sector (weight reduction) and further geographic
spread (BRIC countries). TenCate aims to secure partnerships with third parties
in order to achieve accelerated growth here. During 2012 the first results of
this became visible (3M, BASF, qualifications for the automotive industry). This
policy will be continued in 2013.
Above-average growth is expected for key growth products, such as TenCate Cetex®
(aerospace composites), TenCate Tecasafe(TM) Plus and TenCate Geotube®
(geocontainers for water management systems). The international growth in sales
of TenCate Defender(TM) M will to an increasing extent offset a possible further
decline in US sales. A decrease in sales such as manifested itself in this area
in 2012 is not expected to occur in 2013.
Royal Ten Cate
Almelo, the Netherlands, Friday 1 March 2013
Note to editors
On Friday 1 March 2013 a conference call in English with regard to the 2012
full-year figures will be held at 08.30 CET. Please call +31 (0)10-3010805 and
then key in the participant code 2016#.
For the media, the Dutch language press conference by the Executive Board of
TenCate relating to the 2012 full-year figures will be held at 10.30 CET in the
Hilton Hotel Amsterdam. This invitation to the media was sent out earlier. The
press conference can also be followed on the webcast on www.tencate.com.
For further information:
F.R. Spaan, Group 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 nv (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).
Key figures:
http://hugin.info/130798/R/1682270/550241.pdf
Press release as PDF:
http://hugin.info/130798/R/1682270/550240.pdf
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other applicable laws; and
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originality of the information contained therein.
Source: Koninklijke Ten Cate NV via Thomson Reuters ONE
[HUG#1682270]
Unternehmensinformation / Kurzprofil:
Datum: 01.03.2013 - 08:01 Uhr
Sprache: Deutsch
News-ID 234840
Anzahl Zeichen: 19039
contact information:
Town:
Almelo
Kategorie:
Business News
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