The net interest-bearing debt amounted to € 318 million at the end of the quarter (€ 222 million at the end of the first quarter of 2007).
The balance of financial income and expenses increased only to a limited extent (+ € 0.1 million higher charge) and was influenced by a positive revaluation of hedge instruments (hedging of currency risk), as a result of the decline in the value of the US dollar.
The tax rate fell to 28% compared to the first quarter (2007: 31%), primarily due to the results of TenCate Thiolon Middle East (Dubai).
Investments in the first quarter amounted to € 12.6 million, compared to € 14.3 million in the first quarter of 2007. The main items related to:
The new plant for geosynthetics in Zhuhai (China) Expansion of the production of synthetic turf fibres (Dubai, US)Investments in the expansion of composites production
Outlook: The current trends in the dollar and in the price of oil-related raw materials (PP / PE granulate) have led to a degree of uncertainty.
TenCate is strategically well-positioned in markets with a good prospect.
The expected contribution from the recently acquired companies and the current order position, particularly in the Advanced Textiles & Composites sector, is a source of optimism.
The financial objective already communicated for profit growth per share in the long term on a cash earnings basis is expected at least to be achieved for 2008 as a whole (+10% profit growth per share).