ALMELO, Netherlands, July 24, 2014 (GLOBE NEWSWIRE) --
Summary of first half of 2014
- Revenues for the first half of 2014 remain unchanged in
organic terms; 5% organic growth in revenues in the second
quarter.
- Substantial increase in revenues from composites and
synthetic turf offsets virtually the entire decrease in
defence-related revenues.
- EBITA for the first half declines in organic terms by
13%; EBITA in the second quarter increases by 22% in organic
terms.
- Earnings per share €0.38 (H1 2013:
€0.50).
- Net debt / EBITDA ratio virtually unchanged at
2.87.
- TenCate maintains expectation for the year as a whole;
increase in defence revenues in second half of the
year.
Key figures for first half of 2014
x 1 € million |
H1 2013 |
H1 2014 |
Change |
Organic |
Revenues |
510.9 |
497.6 |
-3% |
0% |
EBITA |
28.8 |
24.3 |
-16% |
-13% |
EBITA margin |
5.6% |
4.9% |
|
|
EBIT |
21.2 |
18.1 |
-15% |
-11% |
Net profit |
13.0 |
10.0 |
-23% |
-22% |
Net earnings per share (€) |
0.50 |
0.38 |
-24% |
|
Other information |
|
|
|
|
Investments in tangible and intangible fixed assets |
4.8 |
12.0 |
|
|
Return on average net capital invested |
6.0% |
5.9% |
|
|
Net interest-bearing debt |
237.0 |
213.4 |
|
|
Debt ratio |
2.80 |
2.87 |
|
|
FTE excluding temporary personnel (end of half year) |
4,245 |
4,318 |
|
|
Outlook For the year as a whole TenCate
maintains its previously announced growth projection in respect of
the trend in revenues for the company, barring unforeseen
circumstances and currency effects.
The defence-related revenues within TenCate Protective Fabrics
and TenCate Advanced Armour show, on the basis of the current order
position, a more favourable picture for the second half of the year
compared to the first half. This positive
sentiment can be ascribed to recent orders for TenCate Defender(TM)
M and the order positions for armour composites.
Loek de Vries, Chairman and CEO of Royal Ten
Cate: 'After a weak first quarter, an improvement in
revenues and result occurred in the second quarter. Revenues and
EBITA increased in organic terms by 5% and 22% respectively in the
second quarter.
The policy-related strengthening of marketing and sales
activities within the company and the introduction of composites
into new markets showed positive results. As a result of strong
growth in the composites and synthetic turf activities, the decline
in revenues in defence markets was largely offset.
The defence-related activities represented 4% of the revenues in
the first half of 2014 (first half of 2013: 9%). Although defence
budgets have been depressed for a prolonged period, TenCate is
investing in innovations for this market. This has strengthened the
market position in particular of TenCate Advanced Armour. TenCate
expects revenues from defence markets to increase in the second
half of the year.
The previously announced revenue growth projection for the
company remains unchanged for the year as a whole.'
Performance by sector
Advanced Textiles & Composites sector The
revenues of the Advanced Textiles & Composites sector declined
in the first half of 2014 by 9% to €206.9 million (organic -7%,
currency effect -2%). EBITA rose by 4% to €14.6 million (organic
+7%, currency effect -3%).
x 1 € million |
H1 2013 |
H1 2014 |
Change |
Organic |
Revenues |
228.4 |
206.9 |
-9% |
-7% |
EBITA |
14.1 |
14.6 |
4% |
7% |
EBITA margin |
6.2% |
7.1% |
|
|
Investments in tangible and intangible fixed assets |
2.9 |
5.6 |
|
|
Depreciation |
5.3 |
4.6 |
|
|
Amortization |
3.9 |
3.2 |
|
|
Net capital invested (end of half year) |
297.8 |
287.2 |
|
|
FTE excluding temporary personnel (end of half year) |
1,518 |
1,601 |
|
|
The revenues of TenCate Protective Fabrics declined in the first
half as a result of a low level of demand from the US Army for
TenCate Defender(TM) M. The revenues from protective fabrics for
the industrial market (TenCate Tecasafe® Plus) rose by in excess of
10%. With TenCate Tecasafe® Plus, TenCate satisfies the desire for
higher levels of employee protection.
TenCate Advanced Composites recorded an organic revenue growth
of 24% in the first half of 2014. Profitability also increased as a
result of a higher capacity utilization rate. This market group
benefited from an increase in demand from the aerospace industry.
Future growth is related to the latest generation of aircraft for
which TenCate materials have been certified. The use of composite
materials for full-scale production in the automotive industry is
still at the developmental stage. Current revenues in automotive
composites are, however, developing positively. In other markets
too there is increased interest in composite materials (industrial
composites).
The TenCate Advanced Armour market group had to contend with a
further decline in revenues. This market group, however, remains
optimistic about the outlook for TenCate in this market, partly in
view of the company's engineering capacities. The expected recovery
in demand from the armour market reported earlier this year will
occur in the second half of 2014. Recently several long-term orders
were announced, work on which is expected to start later this
year.
The commercial launch of the TenCate ABDS(TM) active blast
countermeasure system is expected to take place in 2017, when major
vehicle programmes are planned. The system passed a number of
important tests in the first half of the year. The success of this
system will further strengthen the market position of TenCate
Advanced Armour.
Geosynthetics & Grass sector The revenues
of the Geosynthetics & Grass sector rose by 5% to €259.2
million (organic +8%, currency effect -3%) as a result of strong
recovery in the second quarter. EBITA declined by 27% to €11.0
million (organic -24%, currency effect -3%). The decline in
EBITA can be almost entirely attributed to TenCate
Geosynthetics.
x 1 € million |
H1 2013 |
H1 2014 |
Change |
Organic |
Revenues |
246.9 |
259.2 |
5% |
8% |
EBITA |
15.0 |
11.0 |
-27% |
-24% |
EBITA margin |
6.1% |
4.2% |
|
|
Investments in tangible and intangible fixed assets |
1.5 |
3.7 |
|
|
Depreciation |
10.9 |
9.3 |
|
|
Amortization |
2.4 |
1.7 |
|
|
Net capital invested (end of half year) |
389.0 |
379.3 |
|
|
FTE excluding temporary personnel (end of half year) |
2,101 |
2,054 |
|
|
The revenues of TenCate Geosynthetics rose in the first half of
2014 by 6% in organic terms. After a slow start to the year
revenues picked up in the second quarter, mainly due to recovery in
the United States. The recovery in EMEA and Asia-Pacific lagged
behind as a result of lower government budgets and local political
uncertainty in major Asian markets.
The TenCate Grass market group showed an increase in revenues of
more than 10% in organic terms. The focus of TenCate is on the
creation of new quality standards in respect of synthetic turf
systems. Close cooperation with partners in the market and other
stakeholders, such as national and international sports
federations, is of importance here. The introduction of the
GreenFields brand into the United States has led to acceleration in
growth and a strengthening of market positioning. The growth was in
part driven by a recovery in the global synthetic turf market and
the rising demand for high-grade fibres and sports systems, such as
the GreenFields® TX hockey system, which was introduced earlier.
This system is enjoying international interest as a result of its
exposure to a large number of national hockey federations during
the recent World Cup. There is also increased interest in synthetic
turf in Dutch professional football, which is also having a
positive international effect. The number of orders for the second
half of the year for high-grade synthetic turf systems has
therefore increased sharply.
Other Activities sector The revenues of the
other activities relate to TenCate Enbi and Xennia Technology. The
revenues and profitability of TenCate Enbi were temporarily
depressed as a result of start-up costs for new contracts. The
outlook for TenCate Enbi, however, remains favourable. Profit
recovery of Xennia Technology continued in the first half of the
year. The focus on ink sales had a positive effect on the sales
mix. In technical textile markets in particular there was strong
revenue growth. Inks from Xennia Technology offer demonstrable
quality advantages to the end-user.
x 1 € million |
H1 2013 |
H1 2014 |
Change |
Organic |
Revenues |
35.6 |
31.5 |
-12% |
-9% |
EBITA |
-0.3 |
-1.3 |
|
|
Investments in tangible and intangible fixed assets |
0.4 |
2.7 |
|
|
Depreciation |
1.5 |
1.5 |
|
|
Amortization |
1.3 |
1.3 |
|
|
FTE excluding temporary personnel (end of half year) |
626 |
663 |
|
|
Other financial information for the first half of
2014 The level of investment by TenCate rose to €12.0
million (€4.8 million in the comparable period last year). The main
investment projects were the expansion of capacity for the 3D
matrix-woven synthetic turf system GreenFields® MX, the development
of the TenCate ABDS(TM) active blast countermeasure system and
digital printing and finishing. The net interest-bearing debt
amounted to €213 million at the end of June 2014, which represents
a decline of €24 million compared to June 2013. Compared to the end
of 2013 the net interest-bearing debt rose as a result of the
seasonal pattern in the Geosynthetics & Grass sector and
increased order positions. The debt ratio at the end of June
amounted to 2.87 (June 2013: 2.80); covenant 3.50. The number of
FTEs rose by 73 to 4,318 at the end of June, principally as a
result of the strong growth of the TenCate Advanced Composites
market group.
Board statement 'Based on the information
available to us the Executive Board hereby states that the interim
report, prepared in accordance with IAS 34, Interim Financial
Reporting, gives a true and fair view of the assets, the
liabilities, the financial position and the profit of Royal Ten
Cate and the companies jointly included in the consolidation, and
that the interim report provides a true and fair view of the
information required under Article 5:25d, subsections 8 and 9 of
the Dutch Financial Supervision Act.'
Royal Ten Cate Almelo, The Netherlands,
Thursday 24 July 2014
For further information:
On Thursday 24 July 2014 the conference call in English by the
Executive Board with regard to the 2014 interim figures will be
held for analysts and investors at 9:00 CET. The dial-in number for
this call is +31 (0) 10 713 72 95.
For the media, the Dutch-language press conference by the
Executive Board will be held in the Hilton Hotel Amsterdam at 10:30
CET. At 14:00 CET the Dutch-language analysts' meeting will be held
at the same location.
TenCate (corporate) Pieter Zwinkels, investor
relations manager Tel.
+31 (0)546 544 977 Mobile
+31 (0)6 1088 6338 e-mail
p.zwinkels@tencate.com Internet
www.tencate.com
Royal Ten Cate (TenCate) is a multinational company that
combines textile technology, with chemical processes and material
technology in the development and production of functional
materials with distinctive characteristics with the mission of
'Protecting People'. Systems and materials from TenCate come under
four areas of application: personal protection and defence;
mobility; infrastructure and the environment; sport and recreation.
TenCate occupies leading positions in protective fabrics,
composites for aerospace, antiballistics, geosynthetics and
synthetic turf. TenCate is listed on NYSE Euronext Amsterdam and
included in the AMX index.
Press release as PDF
http://hugin.info/130798/R/1836390/638205.pdf Key figures
http://hugin.info/130798/R/1836390/638206.pdf Explanatory notes
http://hugin.info/130798/R/1836390/638207.pdf
HUG#1836390
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