TenCate’s net profit for 2006 increases by 27%
- Sales rose by more than 12% to € 771 million in 2006, of which 5% autonomous
- The operating result increased by 30% to € 50 million, of which 18% autonomous
- EBIT margin increased from 5.6% to 6.5%
- Net profit including the result on divestments € 76 million (2005: € 30.5 million)
- Net profit adjusted for divestments € 34 million (+27%)
- The principal contribution to the increase in profit came from the Advanced Textiles & Composites sector
- Low autonomous sales growth and a substantial autonomous decline in EBIT at Geosynthetics & Grass
- Good progress recorded with divestments (Plasticum and Synbra), with a result of € 42 million
- Good result at TenCate Enbi
- Dividend proposal of € 0.70 per share
Fourth quarter 2006
Sales rose in the fourth quarter by 7.4% to € 171 million, compared with the same period in 2005. In the last quarter there was a low autonomous growth in sales (+2.5%). This low growth is linked to a cautious market in the United States within the Geosynthetics & Grass sector.
The operating result increased by 53% to € 9.7 million in the fourth quarter. This result includes a non-recurring income to the amount of more than € 4 million.
The currency effect on sales and operating result amounted to - 4% and - 7% respectively.
Net profit amounted to € 6.5 million in the fourth quarter (fourth quarter 2005: € 6.3 million). The net profit in 2005 and 2006 includes a result on the sale of associated companies of + € 1.7 million and - € 0.6 million respectively.
2006 Annual results
Corporate sales in respect of 2006 showed an autonomous increase of 5% to € 771 million. The disappointing autonomous growth was the result of, on the one hand, lower growth in the American market for geosynthetics (construction sector and infrastructure) in the second half of the year. On the other hand, some customers in the American artificial grass market encountered temporary stagnation in the same period of the year.
The operating result amounted to € 50.1 million, an increase of well over 30%. There was an autonomous increase in the operating result of approx. 18%, with a strong autonomous decrease in the operating result within the Geosynthetics & Grass sector.
The influence of currency movements on sales and EBIT for the whole of 2006 remained limited to - 0.6% and – 0.9% respectively.
The net profit for 2006 amounted to € 76 million. Adjusted for the result on divestments, net profit rose by 27% to approx. € 34 million. The principal contribution to this increase in profit was provided by the Advanced Textiles & Composites sector.
Per share of € 2.50 par value, the profit, adjusted for the result on divested companies, rose from €1.30 to € 1.64. It is proposed to pay a dividend of € 0.70 per share, either in cash or in shares.
For developments per sector and the appendices, see the complete press release.