Koninklijke Ten Cate NV : TenCate decides to record an impairment charge
February 06 2015 - 2:01AM
Ahead of the publication of its 2014 annual results on Friday, 20
February 2015, and based on preliminary data, TenCate has decided
to record a (non-cash) impairment charge against goodwill as well
as tangible and intangible fixed assets, mainly in TenCate Advanced
Armour, for an amount of approximately € 82 million
pre-tax.
This impairment charge was triggered by revised forecasts and also
relates to the historical performance of TenCate Advanced Armour,
which recorded a substantial operating loss in 2014. In this market
group, the development of the TenCate ABDS(TM) active blast
countermeasure system is proceeding according to plan.
The impairment charge at TenCate Advanced Armour does not affect
the unit's market position. As reported previously, the market
group has secured multi-year supply agreements in both the United
States and Europe. The timing of the actual delivery of orders
remains uncertain, however. In 2015, the cost structure of the
Advanced Armour group will be further adapted and made more
flexible to better cope with volatile sales volumes, in order to
improve the operating result.
Provisional 2014 results
Based on preliminary data, pending the external auditor's review,
TenCate recorded organic growth of 4% in 2014, resulting in
full-year turnover of approximately € 1,042 million. The 2014 net
profit adjusted for non-recurring items will be approximately € 24
million (2013: € 23.2 million), according to preliminary
figures.
In addition to the impairment charge, non-recurring items include a
pre-tax gain of approximately € 8 million related to a change in
the Dutch pension scheme.
After tax, the balance of non-recurring items is approximately € 70
million negative, according to preliminary data. Reported net
income (IFRS) for 2014 will be a loss of approximately € 46
million.
The impairment charge has no effect on the net debt / EBITDA ratio;
at the end of 2014, TenCate was in compliance with its bank
covenants. It is expected that the proposed dividend will be
unchanged from the previous year (€ 0.50 per share).
The content of this press release has not been
reviewed by the external auditor
Royal Ten Cate
Almelo, The Netherlands, Friday, 6 February 2015
For further information:
TenCate corporate
Gert Steens, investor relations
Telephone : +31 (0)546 544 977
Mobile : +31 (0)621 597
411
E-mail :
ir@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. TenCate products are sold throughout the world.
Systems and materials from TenCate come under four areas of
application: safety and protection; aviation and aerospace;
infrastructure and the environment; sport and recreation. TenCate
occupies leading positions in protective fabrics, composites for
aviation and aerospace, antiballistics, geosynthetics and synthetic
turf. TenCate is listed on Euronext (AMX).
Press release as PDF
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information contained therein.
Source: Koninklijke Ten Cate NV via Globenewswire
HUG#1892402
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