TenCate trading update for the first quarter of 2012
Sales and operating result
The sales and profit achieved in the first quarter of 2012 are in line with expectations. The comparison with the first quarter of 2011 is not representative, as an exceptionally high level of sales of TenCate Defender ™M was generated last year.
The expectation for 2012 as a whole announced earlier will be maintained, barring unforeseen circumstances.
Advanced Textiles & Composites Sector
The sales of products to the US Army was, as expected and previously announced, below the exceptionally high level of sales of the first quarter of 2011. At the end of the first quarter of 2012 demand from the US Army picked up again. Orders have now been received for new projects.
The other market segments within TenCate Protective Fabrics were cautious, with the exception of international demand for the protective fabric TenCate Tecasafe™ Plus.
The European market for protective fabrics again showed growth at the end of the first quarter, which increased the order position.
Sales of armour materials in the United States were at a lower level compared with the first quarter of 2011.
The market for aerospace composites continued to develop apace, which can also be regarded in the longer term as a major pillar underpinning the growth of TenCate. In addition, markets are being developed for TenCate Industrial Composites (automotive industry, oil & gas extraction and other industrial applications). The recent acquisition of the composite company PMC Baycomp fits in well with this. The industrial market regards this acquisition as extremely positive, in view of the number of new orders received. TenCate Industrial Composites currently has several concrete projects for the automotive market.
Developments relating to the TenCate ABDS™ active blast countermeasure system are proceeding according to plan. Preparations for its market implementation are being made in collaboration with public sector bodies and industrial partners. This process will initially entail additional development costs, which will be shared in part by third parties.
Geosynthetics & Grass Sector
The trend in sales of geosynthetics and synthetic turf was as expected.
TenCate Geosynthetics continued to record a good performance. In the US in particular there were positive developments, which were partly due to new products.
In the Grass group there was still no recovery in the results in the fibre production (upstream), partly as the result of seasonal effects.
The downstream activities developed in the desired direction, which can partly be attributed to a certain extent to the measures taken in 2011.
The performance at both TenCate Enbi and Xennia Technology was in line with the developments of the past year. For both companies Asia currently offers the greatest potential for growth.
Royal Ten Cate
Almelo, the Netherlands, Friday 27 April 2012