News Flash

Free trade & protective measures put pressure on Lectra's H1 result

29 Jul '05

4 min read

The company's balance sheet remains particularly solid. Net cash totalled €6 million, after payment of the dividend declared in respect of FY 2004, and after taking into account total payment for the three acquisitions of 2004.

Short Term Visibility Remains Poor
The market turmoil following the abolition of textile quotas could prove longer-lasting and have a more pronounced impact than the experts anticipated. Short term visibility regarding future activity therefore remains very poor.

The main uncertainty for the company remains the timing and scale of the resumption of technology spending by its customers, their investment decisions being on hold for the time being across the world, China included, in recent months. These investments are nonetheless indispensable to succeed in today's fundamentally altered conditions. There have been no positive developments in business conditions since publication of Lectra's last press release.

Despite the slight upturn in business activity in Q2, the period is too short a time frame from which to conduct valid analyses or to extrapolate geographic or market sector trends. Therefore, utmost caution is still called for.

In these particular circumstances, the company considers that it has insufficient objective information, at this juncture, upon which to communicate revenue and earnings range estimates for the full-year 2005.

Lectra is number one worldwide in software and hardware dedicated to industrial users of textiles, leather, and other soft materials. Lectra is present across a broad array of major markets, including fashion and apparel; luggage & leather goods; footwear; furniture & furnishings; and the automotive, aerospace, and marine industries. Through its unique international network, with a staff of 1,600 worldwide, Lectra serves more than 17,000 customers in over 100 countries.

Lectra

More Lectra News... More Textiles News - France...