TenCate sees a positive operational trend in 2010
TenCate announced net profit up 92% to € 46.0 million in 2010 year.
Loek de Vries, Chairman of the Executive Board and CEO: 'In 2010 TenCate achieved an autonomous growth in sales of 10%, in an uncertain economic climate. There is a positive operational trend, partly in view of the quality of the composition of the profit.
The TenCate companies in the Netherlands also made a positive contribution as a result of a successful restructuring process. Production costs were reduced and a greater focus was brought to bear on the composition of the product portfolio.
The results for 2010 form a good basis for the continuation of this growth.
Performance by sector
Advanced Textiles & Composites Sector
The autonomous increase in sales in 2010 amounted to 6% (currency effect +4%; acquisitions / divestments +3%). EBITA rose in 2010 on an autonomous basis by 27% (currency effect +6%; acquisitions / divestments +5%). This increase can mainly be attributed to the strong contribution of the American composites companies and of TenCate Protective Fabrics USA. The Dutch TenCate companies also showed a marked improvement in their results.
The contribution of TenCate Protective Fabrics USA is substantial, as a result of sharply increased sales in the second half of the year. TenCate Defender™ M is the standard fire-resistant protection of the American military in Iraq and Afghanistan. The lifting of import restrictions for foreign fibres into the United States (Berry Amendment) has recently been extended to 2015.
In addition to the defence market, the industrial market also showed an increase in sales, in part as a result of an increased market share. The excellent position of the newly developed product portfolio (including TenCate Tecasafe™ Plus) will ensure that we can respond successfully to the needs of the market.
As from the second half of the year, there was an increase in sales within the TenCate Space & Aerospace Composites market group resulting from the resumption of production of new types of aircraft (mainly Airbus A380).
The European armour market was cautious, partly as a result of tight budgetary conditions in public sector bodies. In the American armour market, by contrast, TenCate was involved in a number of projects (Stryker, FMTV, MRAP programme).
The acquired company AML UK, which was integrated into the European TenCate Advanced Armour group, strengthened the market position and put in a good performance.
TenCate signed a collaboration agreement for the patent development of the Active Blast Defence System (ABDS™), as well as the right to acquire a majority interest in a company that is to be formed for marketing this concept. The concept offers improved protection of military vehicles against roadside bombs and has considerable market potential. At the end of 2010 a demonstrator was built for this, which showed the successful operation of the principle.
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