Picanol Q1 turnover slips 23%

30 Apr '14

2 min read

The Picanol Group realized a consolidated turnover of 111.79 million euros in the first quarter of 2014, compared to 146.00 million euros in the exceptionally strong first quarter of 2013 and in line with the 107.05 million euros in the first quarter of 2012.

As expected and announced earlier, the Weaving Machines division was confronted with a significant slowdown in the global weaving machine market in the first quarter of 2014. This was even intensified by the strong euro. The Industries division saw lower demand from Weaving Machines in the first quarter of 2014. However, it was able to realize further growth from external clients as compared to the first quarter of 2013.

Investment Plan

Since improving the competitiveness through further productivity and quality improvements and targeted investments is a top priority, the Board of Directors approved investments at Ypres for an amount of 17.5 million euros in 2013. The Picanol Group is currently investing in new production machines, a new testing area for weaving machines and a new customer training center in Ypres. Construction works are on schedule and should be completed this summer.

Outlook

The Picanol Group confirms its previous forecast to realize in the first six months of 2014 a turnover in line with that of the first half of 2012. The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost-control remains of the essence.

Picanol Group

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