Home / Knowledge / News / Textiles / TenCate sees growth in sales of protective fabrics
TenCate sees growth in sales of protective fabrics
18
Jul '09
In advance of the publication of the half-year figures on Wednesday 26 August 2009 and on the basis of provisional results, it is announced that net profit for the second quarter fell back by approximately 26% compared with the second quarter of 2008. With a stringent cost reduction policy and a tight liquidity management, as of 30 June 2009 TenCate remained well within the covenants agreed with the banks. The debt / EBITDA ratio improved compared to the previous quarter to approximately 2.5 (covenant 3.0).

Performance
As a result of the current economic climate TenCate has given priority to managing financial risks. Priority was given to debt reduction and maintaining a strong balance sheet, above short-term profit.

Sales in the second quarter fell back 24% compared with the second quarter of 2008 to approximately € 230 million. For the first six months sales amounted to approximately € 430 million (-15%).

Profit was negatively corrected to take account of the downward revaluation of a non-strategic minority interest of the Geosynthetics group amounting to approximately € 5 million. At the end of the second quarter the 50% interest in Geofabrics Australasia Pty Ltd was sold, with a book profit of approximately € 10 million.

Explanatory notes
Advanced Textiles & Composites
• The growth in sales of protective fabrics for defense applications, in particular the growth in sales of TenCate Defender M, amply compensated for the sharp decline in demand in the industrial market as well as the slight decline in sales in the emergency response market;
• In the aircraft sector there has been a drop in demand for aerospace composites, which can in part be attributed to the scaling down of inventories within the entire value chain. Deferment of the construction of new aircraft by major aircraft manufacturers contributed to the failure of the expected growth in sales to materialize. The market for small aircraft (Cirrus) showed a strong recovery at the end of the second quarter;
• Sales of composites for military aircraft and spacecraft showed an increase;
• Sales in armour composites in the second quarter of this year were, in accordance with expectations, lower than in the same period of last year. The reason for this was that no large deliveries of orders took place in the American market in the second quarter, unlike the previous year.

Geosynthetics & Grass
• The geosynthetics market in the US has become weaker compared with the past year as a result of the virtual cessation of the usual infrastructure projects. The European and Asian markets showed a reasonable to good performance. In view of the proportion of sales of the American market, the group's overall level of sales in the first half-year declined by well over 20% compared with the first half-year of 2008;
• Customers in the synthetic turf sector were cautious as a result of a cashcrunch, so that scarcely any orders were placed in the run-up to the season. Credit limits were reduced by insurers, putting pressure on the sales potential in the first half of the year.

Royal Ten Cate


Must ReadView All

Pakistan govt notifies 50% duty drawback on exports

Textiles | On 21st Oct 2017

Pakistan govt notifies 50% duty drawback on exports

The Pakistan government has notified the ‘Duty Drawback of Taxes...

Ghana sets up task force to clamp down on textile piracy

Textiles | On 21st Oct 2017

Ghana sets up task force to clamp down on textile piracy

Ghana’s ministry of trade and industry has set up a taskforce to...

Courtesy: Coach

Fashion | On 21st Oct 2017

US company Coach to change name to Tapestry from Oct 31

Coach Inc., a New York-based house of modern luxury accessories and...

Interviews View All

Nishank Patel
Shri Dinesh Mills Limited

Broad range of fabrics will sell well this financial year

Nitin Soni
Dolphin Jingwei Machines

Taxation policies need to be made simpler

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

October 2017

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
77.1%
No
12.9%
Skip
10.0%

Total Votes: 70

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.4%
No
28.6%
Skip
10.0%

Total Votes: 70

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
85.7%
No
10.0%
Skip
4.3%

Total Votes: 70

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
75.7%
No
11.4%
Skip
12.9%

Total Votes: 70


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