Home / Knowledge / News / Textiles / 'We will continue to exploit growth opportunities' – TenCate CEO
'We will continue to exploit growth opportunities' – TenCate CEO
26
Aug '09
Loek de Vries, Executive Board Chairman and CEO: 'TenCate is well positioned in long-term niche markets in which the trends that are important for our growth remain fully in place. The foundations of these core markets are still intact. We are continuing to pursue our "buy & build" strategy and will continue to exploit growth opportunities, just as we have done successfully in the past. We have a strong balance sheet position and have achieved substantial growth in our cash flow.

The situation currently prevailing among banks, resulting in tightness in the supply of finance, has led to reticence among customers, even though projects are still being implemented. Inventory reduction has taken place on a large scale. Even governments and local authorities - an important group of customers for TenCate - are postponing decisions, with delays in the provision of budget resources.

In view of this situation, from mid-April of this year we gave priority to the maintenance of a healthy financial position. This avoided considerable additional financing costs and/or profit dilution and the attendant undesirable long-term effects.

In view of the foundations underpinning our markets and the measures which have and are being taken in the cost area, TenCate has the potential to stage a strong recovery when the markets recover.'

Performance in the second quarter of 2009

Sales in the second quarter totalled €230.4 million (organic: -29%).

The same period of 2008 had included a substantial order for vehicle armour for the US Army, whereas no such order was recorded in the current period. The market for vehicle armour remains a growth market, but the volumes are liable to fluctuate.

The European market for workwear for industrial end-users was under heavy pressure.

The trends in the American market for geosynthetics were unfavourable as a result of the postponement of infrastructure projects due to the insufficient release of public-sector funding.

The synthetic turf market is a seasonal market in which inventories are accumulated on the basis of the projects scheduled to be implemented over the summer months. The usual inventory accumulation did not take place.

One of the consequences of the tight financial policy was a loss due to underutilisation of capacity, which put additional pressure on earnings.

Second-quarter EBITA (earnings before interest, tax and amortisation) decreased by 58% to €13.4 million (organic -63%; currency effect +5%). The EBITA margin amounted to 5.8% (Q2 2008: 10.5%).

Net financing expenses rose, mainly due to the write-down of a €4.9 million non-strategic interest held by the Geosynthetics group. The balance of the interest income/expenses in this item in the first half of 2009 was approximately €0.7 million lower than in the comparable period in the previous year. The interest rate on the external debt was lower. In contrastto the previous year, no currency options were purchased to hedge the translation risk, so no option premiums were paid.


Must ReadView All

Serbian economy minister Goran Knezevic (left) and Taypa president Mesut Toprak after signing the MoU. Courtesy: Serbian Government/SeeNews

Textiles | On 20th Oct 2017

Turkish group Taypa to build textile factory in Serbia

Turkish textile group Taypa will invest euro 35 million ($41.2...

China’s textile & apparel exports rise 4.3% in Sept ’17

Textiles | On 20th Oct 2017

China’s textile & apparel exports rise 4.3% in Sept ’17

Registering an increase of 4.3 per cent year-on-year, the exports of...

Courtesy: Messe Frankfurt

Textiles | On 20th Oct 2017

Heimtextil to focus on textile solutions for architects

Heimtextil 2018, world's leading trade fair for home and contract...

Interviews View All

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Riddhika Shah
SS Homme

'Worsted wool is the ideal fabric for menswear'

Sunil Kumar Sharma
Loknayak JPNSSSG Ltd

'The blend of cotton–linen yarn has high demand in the domestic and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Rikesh Mistry

Jupiter Comtex Pvt Ltd, established in 1973, started its textile machinery ...

Nitesh Mittal

Kusumgar Corporates is a leading manufacturer of technical textiles and...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Urs Stalder
Sanitized AG

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

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Jay Ramrakhiani
Occasions Elegance Wear

It is believed that by early 19th century, Varanasi weavers had moved away ...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

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
77.9%
No
13.2%
Skip
8.8%

Total Votes: 68

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
61.8%
No
27.9%
Skip
10.3%

Total Votes: 68

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
85.3%
No
10.3%
Skip
4.4%

Total Votes: 68

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
75.0%
No
11.8%
Skip
13.2%

Total Votes: 68


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