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Picanol reports strong half-year performance

Picanol Group closed the first half of 2018 with a net profit of EUR 67.1 million, compared to EUR 58.1 million in the first half of 2017.

22nd August 2018

Innovation in Textiles
 |  Ieper

Clothing/​Footwear

The company reported a net profit of EUR 47.8 million in the first half of the year, compared to EUR 52.2 million in the same period of last year, achieved through its Weaving Machines and Industries divisions. Tessenderlo Group contributed EUR 19.4 million to the net result in the first half of 2018, and the Picanol Group closed the first half of 2018 with a net profit of EUR 67.1 million, compared to EUR 58.1 million in the first half of 2017.

The Weaving Machines division had a very strong half-year based on the well-filled order book at the end of 2017, although it experienced a slight decrease in turnover compared to the exceptionally strong first half of 2017, the company reports.

Despite the lower demand from the Weaving Machines division, the Industries division again realised a strong first half-year thanks to higher demand and projects from other customers. 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).

Weaving machines

The turnover of the Weaving Machines division amounted to EUR 301.5 million, a decrease of 5% compared to EUR 316.3 million in the record first half of 2017. The sale of parts and accessories was in line with the first half of last year. The operating result of the Weaving Machines division amounted to EUR 53.5 million (or 18% of turnover), versus EUR 62.3 million last year.

Industries

The turnover of the Industries division amounted to EUR 105.9 million, an increase of 5% in comparison to EUR 100.4 million in the same period in 2017. The lower demand from the Weaving Machines division also translated into a decrease in turnover for the Industries division. However, this was amply compensated by a turnover increase of 15% for other customers.

The Industries division thus continues to contribute to the growing diversification of the group by fully focusing on its expertise in castings and mechanical finishing (Proferro), controller capacities (PsiControl) and precision parts (Melotte). Both Proferro and PsiControl recorded further growth among existing customers (which was also helped by the positive general economic situation) and also realized a number of new customer projects. The Industries division achieved an operating result of EUR 9 million, compared to EUR 8.8 million in the first half of 2017.

Outlook

“The order book for the second half of 2018 is well-filled. The Picanol Group expects a slight decrease in turnover over the full 2018 financial year compared to 2017 – the best result in the history of the group – and is taking into account a further impact of rising commodity prices,” the company reports.

“The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost-control remains of the essence. Picanol Group’s reliance on the cyclic textile market has been reduced, as a result of the strong Industries growth and the contribution of Tessenderlo Group to the results.”

The Picanol Group is an international, customer-oriented group specialised in the development, production and sale of weaving machines (division Weaving Machines), engineered casting solutions and custom-made controllers (division Industries). The Picanol Group employs almost 2,300 employees worldwide.

www.picanolgroup.com

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