TenCate trading update for the first quarter of 2013
Revenue and operating result
|x € 1 million
||First quarter 2013
||First quarter 2012
|Operating cash flow
Ten Cate’s activities recovered in the first quarter in line with expectations. The synthetic turf activities in particular posted a good performance and revenue from TenCate Defender™ M grew strongly. The cost measures and efficiency improvements implemented in 2012 led among other things to improvements in gross margin and working capital. The debt position before acquisitions decreased by €6 million compared to the end of December 2012. Operating cash flow increased strongly.
Advanced Textiles & Composites sector
Revenue from TenCate Defender™ M in the United States was above expectations in the first quarter of 2013 but lower than in the relatively strong first quarter of 2012. Revenue in the defence market outside the United States continued to rise.
The revenue trend in the US defence market was increasingly offset by the growth of the TenCate Tecasafe™ Plus portfolio in the worldwide industrial market.
Revenue in the composites group in the United States developed in line with growth expectations. Revenue in Europe lagged behind expectations due to delays in deliveries to suppliers for the Airbus A350.
The market potential for armour composites improved, in view of the number of outstanding tenders. Defence budgets nevertheless remain under pressure.
The EBITA of the Advanced Textiles & Composites sector decreased compared to the first quarter of 2012.
Geosynthetics & Grass sector
TenCate Geosynthetics experienced a slow start to the year due to delays in projects caused by the persistent winter weather in Europe and the United States.
TenCate Grass recorded a good performance, with earlier cost measures making a positive contribution. Demand for special (engineered) grass fibres and 3D-woven pitches based on matrix technology grew strongly.
The EBITA of the Geosynthetics & Grass sector increased substantially.
Royal Ten Cate
Almelo, the Netherlands, Friday, 26 April 2013