ALMELO, THE NETHERLANDS--(Marketwire - Jul 20, 2012) -
* Continuing uncertain political climate combined with economic
had a negative effect on government expenditure in 2012.
* Decrease in TenCate revenues of approximately 9% to EUR 540 million in
first six months.
* EBITA for the first half of 2012 approximately EUR 32 million (first
2011: EUR 56 million).
* Expected decrease in revenues in TenCate Defender™ M portfolio
than previously expected in the first half of 2012.
* Positive trend in sales in emerging markets.
* Developments at TenCate Advanced Composites, TenCate Geosynthetics and
TenCate Grass in line with expectations.
* Profit forecast for 2012 as a whole reduced due to uncertainties in the
order position for government projects.
* Sharpening of strategy and cost reductions will result in a future
effect on EBITA of approximately EUR 25 million on an annual basis.
* Prospect for growth remains in force.
(The figures mentioned here are provisional)
General performance for 2012
In anticipation of the publication of the half-year figures on Friday, 27
2012, TenCate is making a downward adjustment to the expected profit trend
the second half of 2012. This is as a result of the expected further
of government budgets and increasing uncertainty in respect of the timing
government orders. It is therefore no longer likely that, as announced
the profit level for 2012 will be at least equivalent to that of 2011. No
further profit forecast will be announced for 2012 as a whole.
TenCate revenues decreased by 9% to EUR 540 million during the first half
2012. This decrease had been partly anticipated. With the exception of the
revenues of TenCate Advanced Armour and the TenCate Defender™ M
which have thus far shown a decrease of approximately US$ 60 million, the
in sales for the first six months of 2012 was in line with expectations.
TenCate announced earlier a decline in revenues within the TenCate
M portfolio. This trend occurred, however, to a greater degree due to an
unexpected decline in buffer inventories at the US military. TenCate is,
however, involved in new US orders for various army units. The timing and
of these on the results for 2012 are at present uncertain.
The sales of TenCate Defender™ M outside the US showed a positive trend.
addition to the countries referred to in the past (Italy, Australia and
the countries which have now placed orders for TenCate Defender™ M
Canada, India, the Netherlands, Sweden, the United Kingdom, Poland, the
Republic and Brazil. Follow-up orders from these countries are expected.
trials are furthermore being conducted in more than ten countries. This
development is in line with the international market potential referred to
Positive developments occurred during the first half of the year at the
aerospace and space composites activities, TenCate Geosynthetics and
Sharpening of strategic focus
The potential for autonomous growth remains positive. TenCate is involved
number of promising developments.
Within the TenCate strategic policy a sharper focus will be brought to bear
the growth of composites activities (buy & build strategy).
This will also entail exploitation of the innovative products and
developed earlier, in order to accelerate revenue growth partly through
cooperation with international market players.
When sharpening the strategic focus emphasis will also be placed on the
integration of activities and synergy effects. This will involve personnel
reductions. The structural positive effect of cost reductions on the future
operating result (EBITA) is estimated at approximately EUR 25 million on an
Royal Ten Cate
Almelo, the Netherlands, Friday 20 July 2012
For further information:
The TenCate half-year figures for 2012 will be published before trading
Friday, 27 July at 08.00 CET. On Friday, 27 July, 2012 the Executive Board
conference will be held for the media in the Hilton Amsterdam at 10.30 CET.
11.30 CET the same morning a conference call will take place for the
relations of TenCate.
Royal Ten Cate (TenCate) is a multinational company that combines textile
technology with chemical processes and material technology in the
and production of functional materials with distinctive characteristics.
products are sold throughout the world.
Systems and materials from TenCate come under four areas of application:
and protection; space and aerospace; infrastructure and the environment;
and recreation. TenCate occupies leading positions in protective fabrics,
composites for space and aerospace, antiballistics, geosynthetics and
turf. TenCate is listed on NYSE Euronext (AMX).
Press release as PDF:
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Koninklijke Ten Cate NV via Thomson Reuters ONE