Strong result at Picanol in ninth consecutive year

Based on the well-filled order book at the end of 2017, the Weaving Machines division achieved a strong first half-year, with high demand for quality and technology resulting in strong sales. In the second half of the year, increasing geopolitical uncertainty in the markets caused a slowdown in demand for weaving machines.

The Industries division also continues to contribute to the growing diversification of the group by fully focusing on castings and mechanical finishing (Proferro), controller capacities (PsiControl) and precision parts (Melotte). In 2018, Industries continued to further modernise its machine park in order to increase efficiency and quality.

In line with the previously announced forecast, Picanol realised a consolidated revenue of €666.71 million over the full 2018 financial year, a decrease in revenue of 3 per cent compared to the €688.93 million recorded in 2017.

In 2018, the group continued to work in Ypres on the internal Let's Make it Together campaign, which was launched in 2017. With this campaign, the group intends to fully commit to the future and sustainable growth of the Picanol Group in Ypres, focusing on three main pillars: world class manufacturing technologies, a digital company and a human-centered company. In 2018, for instance, further investments were made in Ypres in many new finishing machines, adapted processes and employee training.

For 2019, the Picanol group is taking into account a slowdown in the global weaving machine market. This is due to the current macroeconomic and geopolitical climate, in which customers are more cautious and investment decisions might either be delayed or postponed. For the first half of 2019, Picanol Group expects sales to fall by approximately 25 per cent compared to the first half of 2018.

Due to the cyclical nature of the textile market, strict cost-control remains of the essence. Picanol Group’s reliance on the cyclic textile market has been reduced, as a result of the increased contribution of the Industries division and Tessenderlo Group to the results. (RR)

Fibre2Fashion News Desk – India