TenCate reports good order book position for protective fabrics

31 Oct '08

7 min read

The net profit for the first nine months of 2008 amounted to €37.3 million (2007: €30.6 million). The net earnings per share on a cash earnings basis amounted to €1.93 (2007: €1.44) for the first nine months.

Outlook for 2008:
TenCate operates for a significant extent of its sales in markets that have relatively limited sensitivity to economic cycles. The current economic situation is, however, exceptional.

It should be realized that in the future some local and national government budgets will decrease and that industrial markets in particular may be sluggish in the months ahead. The time when and extent to which this may occur are still unclear. However, the effect on sales for 2008 seems to be limited, in view of the current order position.

TenCate's growth is mainly based on markets for the protection of people and the environment, subjects that remain at the top of the global agenda.

The high degree of functionality and the added value of TenCate materials, which are often mandatory in specifications, continue to be the company's strengths. TenCate stands by the profit forecast made earlier.

Performance by sector:

Advanced Textiles & Composites:
Sales in the Advanced Textiles & Composites sector increased in the third quarter to €110.6 million (in autonomous terms +3%). The currency effect on sales for the third quarter amounted to -6%. EBITA showed growth of €14.9 million in the third quarter.

The good performance in the field of protective fabrics for the American market continued, especially in relation to fire-resistant fabrics for the military (TenCate Defender(TM) M). The US Army has opted for this material as the standard for the equipment of troops who are on active deployment. TenCate holds a strong order position.

A new development in TenCate Defender(TM) M has also occurred. There is great interest in this product, which will be launched in the fourth quarter. This fire-resistant material has multifunctional characteristics (such as an insulating effect). This further extends the possible ways of using this product and it can be deployed in numerous applications under a variety of conditions.

The European industrial market for safety fabrics is currently somewhat cautious. For the near future here too the military market will be an interested party.

Activities in the field of vehicle armour in the US, such as the MRAP programme, have developed extremely favourably, partly on the basis of the delivery of orders received in the second quarter.

The Asian market is an emerging market for safety fabrics. TenCate recently entered into a joint venture here with a Thai producer in the shape of TenCate Union-Protective Fabrics Asia Ltd. (50.65% holding). This joint venture became operational in the third quarter and is still in the start-up phase.

Xennia plc (75% holding) showed positive growth. The introduction of the new print technology, which in the first instance was used in the printing of ceramics, is progressing successfully. TenCate will deploy this technology in the future for the coating/finishing of technical textiles (functional materials).

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