TenCate achieves 47% net profit growth in first nine months
(Thomson Reuters ONE) -
Highlights of third quarter of 2011
* Revenues ?290 million (autonomous +6%, currency effect -5%)
* EBITA ?28.0 million (autonomous +13%, currency effect -6%)
* Net profit up by 18% to ?17.3 million
* Positive trend in sales of TenCate Defender(TM) M and TenCate Tecasafe® Plus
* Strong growth in aerospace composites and geosynthetics
* Sales of synthetic turf fibres and armour materials fall short of
expectations
+----------------+----------------+----------------+-------------+-------------+
|x ? million |Third quarter |Third quarter |9 months 2011|9 months 2010|
| |2011 |2010 | | |
+----------------+----------------+----------------+-------------+-------------+
|Revenues | 290.0| 272.8| 882.4| 727.4|
+----------------+----------------+----------------+-------------+-------------+
|EBITA | 28.0| 25.4| 84.2| 63.6|
+----------------+----------------+----------------+-------------+-------------+
|EBITA margin (%)| 9.7| 9.3| 9.5| 8.7|
+----------------+----------------+----------------+-------------+-------------+
|Net profit | 17.3| 14.7| 50.5| 34.3|
+----------------+----------------+----------------+-------------+-------------+
Loek de Vries, President and CEO of TenCate:
'The sales trend in protective fabrics, aerospace composites and geosynthetics
was positive.
The order position in the European market for armour materials developed
favourably. The focal point of these sales will be in the fourth quarter.
The US market for armour materials and the synthetic turf market were sluggish.
Net profit increased in the third quarter by 18% to ?17.3 million. Net profit
growth for the first nine months was strong (+47%).
TenCate expects to achieve record sales and profit from operational activities
for 2011 as a whole.
There is ongoing market consolidation and strategic repositioning taking place
in the synthetic turf activities, in which TenCate plays a leading role. The
situation on the financial markets and the tightening of local authority budgets
has resulted in restraint in respect of invitations to tender for synthetic turf
projects, particularly in southern Europe and the US'.
Key developments in the third quarter by sector
* Advanced Textiles & Composites
* Sales of TenCate Defender(TM) M and TenCate Tecasafe® Plus remained at a
high level.
* A cooperation agreement was entered into with Chinamex for the
introduction of flame-resistant fabrics onto the Chinese market in 2012.
* The volume growth in aerospace composites also had a positive effect on
the capacity utilization rate, particularly on production in the
Netherlands.
* The armour composites market in the US was sluggish; the order position
in Europe developed favourably.
* The demand for composite materials outside the aerospace and armour
markets increased; the automotive industry, in particular, is an
important potential area of growth.
* Geosynthetics & Grass
* Sales of geosynthetics showed a positive trend on all continents. The
relative proportion of sales in South America and Asia rose. Emas Kiara
was integrated within TenCate Geosynthetics Asia.
* The earlier adverse effects of the increased costs of raw materials were
offset by price increases within the Geosynthetics group.
* Within the Grass group there was a decline in sales compared to 2010, as
a result of the termination of the delivery contract with a major
customer. There was also a decline in the market volume of synthetic
turf in the third quarter. This decline occurred mainly in the US and in
southern Europe.
* TenCate downstream activities in the synthetic turf market showed an
autonomous growth in revenues of 17% in the third quarter.
* Market launch of fully recyclable synthetic turf systems by Edel Grass
and GreenFields. These systems were produced using TenCate's new
patented weaving technology.
* Other activities
* In the third quarter TenCate Enbi presented an identical picture to that
of 2010. Sales in Asia continued to increase.
* The revenues of Xennia Technology grew rapidly. Sales consisted mainly
of components and sales of inks still remained limited.
Other information
Investments made during the first nine months of 2011 amounted to ?17.3 million
(2010: ?13.3 million). Net financial expenses rose by ?1.4 million to ?8.5
million, principally due to a higher interest rate on loans. Compared to the
third quarter of 2010, the debt position increased by ?73 million to ?317
million. This can be attributed to acquisitions and higher working capital. The
debt ratio amounts to 2.23; at the end of the third quarter of 2010 it still
amounted to 2.54.
Outlook
TenCate expects to achieve record sales and profit for 2011 as a whole.
Future sales of TenCate Defender(TM) M to the US Army are expected to be in line
with the involvement of US military personnel in foreign missions. At the same
time TenCate will introduce protective fabrics based on TenCate Defender(TM) M
and TenCate Tecasafe® Plus technology in a number of new geographical markets
and in market segments other than defence.
Royal Ten Cate
Almelo, The Netherlands, Thursday 3 November 2011
For further information:
Royal Ten Cate
F.R. Spaan, Corporate Director, Business Development
Tel. : +31 546 544 977
Mobile : +31 612 961 724
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/1560317/482774.pdf
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originality of the information contained therein.
Source: Koninklijke Ten Cate NV via Thomson Reuters ONE
[HUG#1560317]
Unternehmensinformation / Kurzprofil:
Datum: 03.11.2011 - 08:00 Uhr
Sprache: Deutsch
News-ID 83499
Anzahl Zeichen: 7878
contact information:
Town:
Almelo
Kategorie:
Business News
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