TenCate net profit rise in Q1

29 Apr '08

3 min read

The net interest-bearing debt amounted to € 318 million at the end of the quarter (€ 222 million at the end of the first quarter of 2007).

The balance of financial income and expenses increased only to a limited extent (+ € 0.1 million higher charge) and was influenced by a positive revaluation of hedge instruments (hedging of currency risk), as a result of the decline in the value of the US dollar.

The tax rate fell to 28% compared to the first quarter (2007: 31%), primarily due to the results of TenCate Thiolon Middle East (Dubai).

Investments in the first quarter amounted to € 12.6 million, compared to € 14.3 million in the first quarter of 2007. The main items related to:

The new plant for geosynthetics in Zhuhai (China)
Expansion of the production of synthetic turf fibres (Dubai, US)Investments in the expansion of composites production

Outlook:
The current trends in the dollar and in the price of oil-related raw materials (PP / PE granulate) have led to a degree of uncertainty.

TenCate is strategically well-positioned in markets with a good prospect.

The expected contribution from the recently acquired companies and the current order position, particularly in the Advanced Textiles & Composites sector, is a source of optimism.

The financial objective already communicated for profit growth per share in the long term on a cash earnings basis is expected at least to be achieved for 2008 as a whole (+10% profit growth per share).

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