TenCate Trading Update relating to the second quarter of 2009>
TenCate Trading Update relating to the second quarter of 2009
(Thomson Reuters ONE) - Net profit second quarter well over ? 13 million* TenCate remains well within bank covenantsIn advance of the publication of the half-year figures on Wednesday26 August 2009 and on the basis of provisional results, it isannounced that net profit for the second quarter fell back byapproximately 26% compared with the second quarter of 2008. With astringent cost reduction policy and a tight liquidity management, asof 30 June 2009 TenCate remained well within the covenants agreedwith the banks. The debt / EBITDA ratio improved compared to theprevious quarter to approximately 2.5 (covenant 3.0).PerformanceAs a result of the current economic climate TenCate has givenpriority to managing financial risks. Priority was given to debtreduction and maintaining a strong balance sheet, above short-termprofit.Sales in the second quarter fell back 24% compared with the secondquarter of 2008 to approximately ? 230 million. For the first sixmonths sales amounted to approximately ? 430 million (-15%).Profit was negatively corrected to take account of the downwardrevaluation of a non-strategic minority interest of the Geosyntheticsgroup amounting to approximately ? 5 million. At the end of thesecond quarter the 50% interest in Geofabrics Australasia Pty Ltd wassold, with a book profit of approximately ? 10 million.Explanatory notesAdvanced Textiles & Composites * The growth in sales of protective fabrics for defense applications, in particular the growth in sales of TenCate Defender(TM) M, amply compensated for the sharp decline in demand in the industrial market as well as the slight decline in sales in the emergency response market; * In the aircraft sector there has been a drop in demand for aerospace composites, which can in part be attributed to the scaling down of inventories within the entire value chain. Deferment of the construction of new aircraft by major aircraft manufacturers contributed to the failure of the expected growth in sales to materialize. The market for small aircraft (Cirrus) showed a strong recovery at the end of the second quarter; * Sales of composites for military aircraft and spacecraft showed an increase; * Sales in armour composites in the second quarter of this year were, in accordance with expectations, lower than in the same period of last year. The reason for this was that no large deliveries of orders took place in the American market in the second quarter, unlike the previous year.Geosynthetics & Grass * The geosynthetics market in the US has become weaker compared with the past year as a result of the virtual cessation of the usual infrastructure projects. The European and Asian markets showed a reasonable to good performance. In view of the proportion of sales of the American market, the group's overall level of sales in the first half-year declined by well over 20% compared with the first half-year of 2008; * Customers in the synthetic turf sector were cautious as a result of a cash crunch, so that scarcely any orders were placed in the run-up to the season. Credit limits were reduced by insurers, putting pressure on the sales potential in the first half of the year.Royal Ten CateAlmelo, The Netherlands, Friday 17 July 2009For further information:Drs. F.R. Spaan, director investor relations & corporate developmentTelephone : +31 (0)546 544 338Mobile : +31 (0)06 12 96 17 24E-mail : f.spaan(at)tencate.comInternet : www.tencate.comRoyal Ten Cate (TenCate) is a multinational company which combinestextile technology with related chemical processes and materialtechnology in the development and production of functional materialswith distinctive characteristics. Products of TenCate are soldworldwide.Systems and materials from TenCate come under four areas ofapplication: safety & protection, space & aerospace, infrastructure &the environment, and sport & recreation. TenCate occupies leadingpositions in protective fabrics, composites for space and aerospace,antiballistics, geosynthetics and synthetic turf. TenCate is listedon the NYSE Euronext (AMX).http://hugin.info/130798/R/1329583/313969.pdfThis announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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Datum: 17.07.2009 - 18:01 Uhr
Sprache: Deutsch
News-ID 3709
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