ALMELO, NETHERLANDS, Jul 22 (MARKET WIRE) —
TenCate doubles its profit in the first half of 2010
In advance of the publication of the half-year figures on Thursday, 26
August 2010 and on the basis of provisional results, TenCate announces
that its operating result (EBIT) amounts to approximately EUR 27 million
in the second quarter of 2010 (second quarter of 2009: EUR 11.1 million).
The operating result for the first six months of 2010 doubled to an amount
of approximately EUR 33 million. Taking incidental items into account, net
profit too doubled in the first half year to approximately EUR 19 million.
Corporate revenues for the first six months of 2010 amounted to
approximately EUR 450 million (+5%).
The Geosynthetics & Grass sector showed strong growth (+17%).
Sales declined by 10% in the Advanced Textiles & Composites sector as a
result of reduced demand for TenCate Defender(TM) M and TenCate Gen2(TM)
for the US Army. This was due to a modification to the camouflage print
(MultiCam pattern). Conversely, the successful market launch of the
protective fabric TenCate Tecasafe(TM) Plus in the US industrial market
resulted in a sharp increase in the sales of this product in the first
In the second half of the year sales in particular of TenCate Defender(TM)
M will again recover their old level.
The Geosynthetics & Grass sector recorded a significant improvement in its
result. The decrease in costs in business operations across the entire
sector is reflected in this. In the synthetic turf operations, the
commercial policy was amended in combination with the implementation of
efficiency measures. This had a highly positive effect.
The Other Activities sector also showed a favourable picture. TenCate Enbi
recorded a strong growth in profits, partly as a result of the cost
measures taken at the end of 2009 and positive market trends. Xennia
Technology made good progress in commercial developments.
The bank covenant net debt / EBITDA (debt ratio) remained clearly under
the maximum agreed value (3.0) in the first half year.
Performance in the second half of 2010
The improvement in the results will continue in the second half of 2010
and there will be positive developments in the Advanced Textiles &
Composites sector, which will underpin the growth in profits.
Sales of protective fabrics to the US Army will recover.
The expectation is that also sales of aerospace composites will gradually
begin to recover in the second half.
The armour composites market in the US presents a more positive picture
than that for the first six months, based on the present project
portfolio. New programmes, like that for the Eurocopter, will gradually
begin to contribute to sales in the future.
The outlook in both the aviation market and the armour market in respect
of composites is thus positive.
Royal Ten Cate
Almelo, The Netherlands, Thursday, 22 July 2010
For futher information:
The press conference relating to the half yearly figures for 2010 will be
held in Amsterdam at 10.30 a.m. on Thursday, 26 August 2010. Journalists
may already register now via firstname.lastname@example.org. You will then receive a
confirmation together with a route description.
Royal Ten Cate
Frank Spaan, Director Investor Relations & Corporate Development
Telephone: +31 (0)546 544 977
Mobile: +31 (0)612 96 17 24
Royal Ten Cate (TenCate) is a multinational company that combines
textile technology, chemical processes and material technology in the
development and production of functional materials with distinctive
characteristics. TenCate products are sold worldwide.
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
safety fabrics, composites for space and aerospace, antiballistics,
geosynthetics and synthetic turf. TenCate is listed on NYSE Euronext
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Source: Koninklijke Ten Cate NV via Thomson Reuters ONE
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