Profit, cash flow in 2014 far exceed expectations
Itema, the world’s largest privately-held provider of advanced weaving solutions, including best-in-class weaving machines, spare parts and integrated services, has again maintained the positive trend for the period ended December 31, 2014. With this spectacular performance, Itema asserts itself as the only major weaving machine manufacturer to grow in a global weaving machine market recession.
Following the over 12 per cent increase in sales volumes in the first half of 2014, the group closed the year with sales of over 10 per cent as compared to the European production and as a substantial confirmation of the previous year volumes for the Chinese subsidiary.
“We are pleased with our results considering that our company grew by some 60% in the past two years in a market that declined, according to our estimates, by some 30% over the same period,” said Mr. Carlo Rogora, Itema CEO. “I believe this remarkable achievement is further proof that we are on the right path with renewed confidence, stronger-than-ever company set-up and highest acclaimed product portfolio. At Itema, we inject innovation in every step when creating our weaving machines, and the results of the past couple of years clearly show that our demanding customers appreciate our inspired innovation, customer focus and attention to detail.”
Itema’s operations in the Indian sub-continent delivered the biggest comeback with a turnaround year and +100 per cent YOY growth in volumes just from India alone, where Itema has developed over the years a comprehensive sales and after-sales service organization operating from offices in Mumbai as well as in Coimbatore, New Delhi and Kohlapur.
At the helm of the company’s operations in India is the new Managing Director, Mr. Updeep Singh, who joined Itema in March 2014, bringing with him an impressive career in the textile market as a senior executive in well-known international groups like Welspun. Last year Itema India registered unprecedented growth, producing remarkable results in terms of number of machines installed, thanks largely to the innovations and technological specifications of Itema-branded weaving machines.
The group once again extended its geographic reach with the highest-ever number of countries to which it sold its weaving machinery, providing an important buffer against volatility in various regions in the world.
As already reported in the H1 2014 earnings announcement, the Spare Parts Business Unit closed on a positive note (+5% YOY) reversing a 10-year negative trend to-date.
Thanks to the satisfactory results in volumes, prices in line with expectations, as well as the continuing and relentless actions to reduce variable and fixed costs, the consolidated profit before taxes from operations significantly exceeded expectations, up +20 per cent YOY.
Implementation of “Lean Manufacturing” across Itema manufacturing and assembly lines is producing sensible results in terms of workforce efficiency, reliability and net working capital reduction. The company has successfully managed to boost productivity, as a result of process improvements, as well as some €5 million investment in automation equipment in 2014.
Also implemented is a new approach to the company’s presence in major markets with sales and after-sales support concentrated out of regional hubs, such as the strengthened Asian Hub operating out of Hong Kong offices, as well as the new and improved Americas Hub operating out of the US offices.
Itema product offering features advanced weaving machines, which constantly receive accolades from the growing ranks of customers who seem to particularly appreciate the company’s drive and mission to fulfill even the most demanding requirements of its customers.
Innovative rapier R9500
Itema’s rapier R9500 has affirmed itself as the most innovative rapier loom on the worldwide market today and represents half of the company’s revenues from weaving machines. It attained the status of global best-seller due to its proven technological superiority and innate capability to weave virtually every type of fabric as diverse as home textile, apparel and technical, to name just a few. Ultra-flexible rapiers and an optimized shed geometry further boost the versatility of the R9500 loom by Itema, vastly contributing to the machine’s unparalleled performance.
On the airjet side, loyal and satisfied customers worldwide confirm that the comprehensive airjet portfolio of Itema is by far the best choice on the market today to weave heavier styles – a feature recognized and sought after by sophisticated weavers.
Setting Itema airjet looms apart are the cam sley drive, coupled with the optimized shed geometry which guarantee top flexibility to weave a wider range of fabrics. Itema, with its series of three distinct, right-for-application A9500 airjet models, also offers high-speed performance, consistent fabric quality and value for money, whilst ensuring versatility, optimizing productivity and enabling customers to quickly respond to market expectations.
“At Itema, we push boundaries and drive the evolution of weaving machines,” continued Rogora. “Our ItemaLab, the unit dedicated to advanced Research & Innovation, is working tirelessly on the loom of the future. In the meantime, we are continuing to offer innovative weaving solutions and are looking forward to displaying our capabilities at ITMA in Milan later this year. At Itema, we believe in the future, that’s why we want to anticipate it. The future is now and the future is Itema,” said the Group CEO.
“Itema closed 2014 with the highest Backorder for the last 5 years. However, given the persisting instability in the global macroeconomic and political conditions, and especially in the regions where our industry operates, our outlook for 2015 remains cautious. Drawing from our rich legacy, Itema is here, more than ever, to make weaving smarter, easier and more agile for our customers, far and near. This is our motivation, and no matter how difficult the task or how fierce the competition, we shall persevere in our mission to fulfill even the most far-reaching desires of our customers,” concluded the CEO.