Home / Knowledge / News / Textiles / TenCate records profit growth of 47% for H1
TenCate records profit growth of 47% for H1
Aug '08
General performance second quarter 2008: Sales in the second quarter of 2008 increased by 28% to € 302 million. In autonomous terms growth was 11%. The currency effect on sales amounted to -8%. The growth can be attributed to both American military orders for protective fabrics and vehicle armour (acquisition of Composix) and to European military orders for vehicle armour.

In addition, there were increasing sales of aerospace composites, mainly due to the deliveries to Airbus Industries and strong growth in the sales of synthetic turf activities.

Apart from the geosynthetics market in the US, which is mainly related to activities in the construction and infrastructure industry, there was in the second quarter a continuation of the growth in the core markets in which TenCate occupies leading positions worldwide.

The recent opening of the production site in China for geosynthetics and the joint venture in Thailand for safety fabrics has strengthened the position in the rapidly growing Asian markets.

The operating result before amortization (EBITA) rose in the second quarter to € 31.9 million (+59%). In autonomous terms, the rise amounted to 10%. The currency effect on EBITA amounted to -13% in the second quarter.

The EBITA margin rose from 8.5% to 10.5% in the second quarter.

The net profit before amortization and excluding the result from divested activities and exceptional items (cash earnings) increased by 52% to € 21.8 million in the second quarter. (Amortization amounted to € 3.8 million in the second quarter.)

First half 2008:
Sales in the first half amounted to € 511.6 million (2007: € 426.3 million). This sales growth of 20% was to a large extent the result of acquisitions. On an autonomous basis sales increased by 8%.

The currency effect on sales amounted to -8%, primarily as a result of the weak American dollar.

The operating result before amortization was € 45.3 million, a rise of 45% compared to the first half of 2007. In autonomous terms the rise was 5%. The currency effect was -12%.

The EBITA margin rose from 7.3% to 8.9% in the first half of the year.

Cash earnings amounted to € 30.3 million for the first six months of 2008 (compared to 2007: +47%). The growth is above the previously indicated profit growth based on provisional figures, due to the completion of the processing of acquisitions.

The total amortization charge rose to € 4.9 million (2007: € 1.3 million) as a result of the acquisitions made during the first half

The net profit for the first half of 2008 amounted to € 25.4 million (2007: € 19.4 million).

Net earnings per share for the first six months were € 1.08 (2007: € 0.86).

Outlook for 2008:
The market outlook for TenCate's major core markets remains favourable. TenCate therefore expects once again a strong annual result.

The net profit before amortization and excluding the result from divested activities and exceptional items (cash earnings), which amounted to € 46.6 million in 2007, is expected to increase by at least 30%, barring unforeseen circumstances. The amortization charge for 2008 as a whole will be approximately € 10 million (2007: € 3.6 million).

Must ReadView All

Textiles | On 22nd Jun 2017

Zund unveils cradle feeder roll-feed system for fabrics

Zund Systemtechnik AG, Switzerland’s textile machinery firm that...

Textiles | On 22nd Jun 2017

Hpfabrics opening production facility in Forsyth County

Hpfabrics, manufacturer of raw fabrics, is opening a new production...

Courtesy: Napapijri

Apparel/Garments | On 22nd Jun 2017

Napapijri's Superlight Parka is free of fur and down

Napapijri has introduced the new Superlight Parka, a new lightweight...

Interviews View All

Cindy McNaull

We have broad range of options in durable fabrics

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Rupa Sood and Sharan Apparao

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search