TenCate revenues down 8% in 2012

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.

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