Volatile economy slowdowns weaving machine market, Picanol
In line with the previously outlined forecast, the Picanol Group realized a consolidated turnover of 97.88 million euros in the third quarter of 2011. This compares to 96.51 million euros in the third quarter of 2010.
In the third quarter of 2011, the Weaving Machines division was, as expected, confronted with a slowdown in the worldwide demand for new weaving machines. This was due, among other things, to the volatile commodity prices and a limited availability of funding for investments. Meanwhile, the Industries division experienced a slight increase in activities through meeting increased demand for larger and technically more complex cast iron parts (Proferro) and industrial controllers (PsiControl Mechatronics).
Sale of Steel Heddle activities
In September 2011 the Picanol Group signed an agreement with Groz-Beckert KG regarding the sale of the Steel Heddle activities of GTP Greenville. The transaction will result in a non-recurring capital gain of 0.6 euros per share. The Picanol gravity point in Greenville, which is responsible for sales and service of Picanol weaving machines and spare parts in the US, continues its operations as Picanol of America Inc.
R&D and product innovation
R&D and product innovation continue to play a central role in the further development of the high-technology activities of the Picanol Group. The company celebrated its 75th anniversary with the introduction of two new products at ITMA Barcelona, the four-yearly textile machinery exhibition. The new high-end airjet weaving machine OMNIplus Summum and the positive rapier (a newer version of the OptiMax) were introduced at this event. The new weaving machines were positively received.
Purchase of machinery of TBP Electronics Belgium
The Picanol Group has purchased the high-tech machinery of TBP Electronics Belgium NV from Geel. The key elements include four SMD lines, two wave soldering lines, and two selective soldering lines for surface mounting and soldering printed circuit boards.
In addition, the Picanol Group purchased a large amount of high-tech laboratory and test equipment. Over the coming months, the machines will be installed at the manufacturing plants in Ypres (Belgium) and Rasnov (Romania) by its subsidiary (PsiControl Mechatronics). The purchase fits into the growth plans of PsiControl Mechatronics, which focuses on the further expansion of its controller capacities, which in due course will have a positive impact on employment in Ypres and Rasnov.
The Picanol Group confirms it is on course to realize its previously outlined forecast in the second half of this year, a turnover that is in line with that achieved in the second half of 2010. However, the Picanol Group does consider a further slowdown will take place in the weaving machine market in 2012. Consequently, it remains cautious, as it is active as an export-oriented company in a volatile world economy.
ThePicanol Group is an international, customer-oriented group specialized in the development, production and sale of weaving machines and other high-technology products, systems and services.