Gamma Holding strengthens its financial position in Q3
Gamma Holding NV announced positive third quarter result.
The figures quoted in this trading update relate to continuing operations. Comparative figures have been adjusted to reflect the sale of Vlisco Group.
Jan Albers, CEO
?In spite of continuing economic uncertainty, our company strengthened its financial position in the third quarter of this year. All the business units showed growth of turnover and earnings, and the sale of Vlisco Group enabled us to reduce our debt burden. That puts us in a better position for refinancing and gives us more possibilities for the future. Barring unforeseen circumstances, we expect the positive trend to continue in the fourth quarter.'
Developments in the third quarter
In the third quarter Gamma Holding once again benefited from an improved economic climate and earlier cost savings and restructurings. This had a positive effect on earnings in all the business units.
Group turnover in the third quarter of 2010 totalled € 150 million (2009: € 124 million). This includes a positive effect of € 11 million arising from currency movements.
Group EBITDA excluding restructuring expenses was € 18.8 million (2009: € 11.4 million). Currency movements had a positive effect of € 1.7 million.
Interest-bearing liabilities fell by € 113.7 million in the third quarter to € 168.4 million.
Turnover of Ammeraal Beltech increased by 20% to € 73 million (2009: € 61 million). EBITDA excluding restructuring expenses came to € 8.2 million (2009: € 5.1 million). The business unit benefited from upward trends mainly in America and Asia.
Sales of timing belts were particularly strong, partly thanks to large deliveries for the kilometres-long baggage system of the new airport in Dubai in the United Arab Emirates. Modular belts also sold well, due, for instance, to the introduction of a new spiral belt with a small radius for purposes such as the refrigeration and freezing of food products.
Turnover at Clear Edge Filtration increased by 29% to € 29 million (2009: € 22 million). EBITDA excluding restructuring expenses came to € 3.6 million (2009: € 1.0 million). Above all, sales of filtration cloth and products for filtration belts, core products within the Clear Edge range, picked up. Of all the regions, the trend in Asia was particularly positive.
Consolidation is taking place in Europe, with all the activities being transferred from Sweden to Germany. The German unit will act as a centre of excellence within the group in the field of weaving and R&D.
Turnover of Dimension-Polyant rose by 10% to € 8 million (2009: € 7 million). EBITDA excluding restructuring expenses came to € 0.1 million (2009: € -0.2 million). The OEM market and the cruising and wind-surfing segments picked up, and demand for the D4-Multi Panel membrane sails used for racing competitions also increased.
The business unit launched successful new products in the third quarter of 2010. For instance, Dimension-Polyant developed a racing spinnaker line for high-quality applications. Furthermore, various sailing competitions were once again won with Dimension-Polyant sailcloth, including the Trophée des Champions and the European Championships.