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15th March 2019, Ieper

Picanol reports year of strong results

The Weaving Machines achieved strong sales in first half-year. © Picanol Group

The Weaving Machines achieved strong sales in first half-year. © Picanol Group

Picanol Group, a market leader in airjet and rapier weaving machines, has reported a consolidated revenue of EUR 666.71 million over the full 2018 financial year, a decrease of 3%, compared to the EUR 688.93 million recorded in 2017 – the best year in the history of the Picanol Group.

Following an absolute record year in 2017, the Weaving Machines division again experienced an excellent year. Based on the well-filled order book at the end of 2017, it achieved a strong first half-year, with high demand for quality and technology resulting in strong sales. In the second half of the year, increasing geopolitical uncertainty in the markets caused a slowdown in demand for weaving machines.

The Industries division also had another strong year, which was driven by Weaving Machines and this was mainly thanks to the strong growth in new projects. The Industries division thus continues to contribute to the growing diversification of the group by fully focusing on castings and mechanical finishing (Proferro), controller capacities (PsiControl) and precision parts (Melotte). In 2018, Industries continued to further modernise its machine park in order to increase efficiency and quality.

The activities of the Picanol Group resulted in 2018 in a profit after tax of EUR 77.98 million, compared to EUR 91.64 million in 2017. In addition, Tessenderlo Group made a positive contribution to the net profit of EUR 32.95 million in 2018, compared to EUR 10.07 million in 2017. The group closed 2018 with a net profit of EUR 110.92 million, compared to EUR 101.71 million in 2017.

Slowdown in weaving machine market

For 2019, the Picanol Group is taking into account a slowdown in the global weaving machine market. This is due to the current macroeconomic and geopolitical climate, in which customers are more cautious and investment decisions might either be delayed or postponed. In 2019, Industries will mainly aim for further growth with customers in other markets. For the first half of 2019, Picanol Group expects a decrease in revenue of around 25% compared to the first half of 2018.

Let’s Make it Together

In 2018, the group continued to work in Ypres on the internal Let's Make it Together campaign, which was launched in 2017. With this campaign, the group intends to fully commit to the future and sustainable growth of the Picanol Group in Ypres, focusing on three main pillars: world class manufacturing technologies, a digital company and a human-centred company.

In 2018, further investments were made in Ypres in many new finishing machines, adapted processes and employee training. 2018 was also the year in which the technology box The Cube was launched. This has already provided some 700 employees with the opportunity to get up close and personal with a number of new relevant technologies, challenges and associated opportunities in an accessible manner.

The Board of Directors approved investments of EUR 25 million for Ypres for 2019. This investment plan includes an automated high-bay warehouse and a major modernisation of the machine capacity at Proferro and Picanol. In addition, the Picanol Group also plans investments at Melotte and PsiControl in Romania.

www.picanolgroup.com

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