New Year opens with strong order book
In line with its earlier forecasts, the Picanol Group realized a consolidated turnover of 418.2 million euros over the full 2014 financial year compared to 559.9 million euros in 2013, which was the best year in the history of the group.
The gross profit of the group for the financial year amounted to 86.4 million euros compared to 137.4 million euros in 2013. The gross profit percentage decreased from 24.5% to 20.7%. The operating result decreased by 47%, from 103.7 million euros in 2013 to 54.2 million euros in 2014.
The Picanol Group closed 2014 with a net profit of 52.4 million euros, compared to a net profit of 73.1 million euros in 2013. The share of the results of Tessenderlo Chemie NV for the full financial year 2014 was 11.7 million euros.
The Weaving Machines Division made a hesitant start to 2014 based on the weaker order book at the end of 2013. The first half of the year was characterized by a lower demand for weaving machines worldwide. This resulted in a sharp decline in orders compared to the record year of 2013. Demand for Picanol weaving machines increased in the fourth quarter of 2014, with the technological leadership of the group being further bolstered by the weaker euro.
Lower demand from the Weaving Machines Division also resulted in a decrease in turnover for Industries in 2014. This was partly offset by rising sales to other customers, while Industries strongly focused on engineered casting solutions (Proferro) and its controller capacities (PsiControl) to attract new projects.
The Picanol Group closed the year 2014 with a net profit of 52.4 million euros, compared to 73.1 million euros in 2013.
* For the first time since the financial year 2007, the Board of Directors will propose payment of a gross dividend of 0.1 euros at the annual general meeting on April 15 for a total amount of 1.8 million euros.
* The Picanol Group is currently recruiting some 30 temporary workers for its production site in Ypres, to meet the deadlines on a number of projects. In addition, the group has 10 vacancies for engineers and technically skilled workers.
* For the first half of 2015, the group expects to realize an increase in turnover, estimated between the turnover recorded during the first half of 2013 and that of the first half of 2014.
Weaving machines
The Weaving Machines Division made a hesitant start in 2014 based on the weaker order book at the end of 2013. The first half of the year was characterized by lower demand for weaving machines worldwide. This resulted in a sharp decline in orders compared to the record year of 2013. Demand for Picanol weaving machines increased in the fourth quarter of 2014 with the technological leadership of the group being further bolstered by the weaker euro.
In 2014 Picanol successfully participated in a number of international trade fairs where it confirmed itself as the technological market leader in rapier and airjet weaving machines. It participated in Techtextil Middle East (Dubai), the Dhaka International Textile & Garment Machinery Exhibition (Bangladesh), Kortex Korea, Textile Asia and Igatex (Pakistan), Marquetry Mash Moscow (Russia), Indo Inter Tex Jakarta and Techtextil North America.
At ITMA Asia + CITME 2014, it introduced its GTMax-i rapier weaving machine. This is the high-performance version of the GT-Max. In October last, the company also organized an open day in South Korea to present the benefits of its rapier technology to Korean weavers.
During the year, Picanol continued to invest in renewal and modernization of its production facilities. In combination with further productivity and quality improvements, the group is now aiming to improve its competitiveness in Ypres. In addition to the acquisition of several new finishing machines, the company has invested in a new test area and a new training center for weaving machines in Ypres, which enables it to offer an even higher level of quality and service.
The new buildings were officially inaugurated in the presence of Geert Bourgeois, Minister-President of the Flemish Government. In 2014, Picanol celebrated the 20th anniversary of its production plant in Suzhou and over 50 years of presence in the Chinese market.
In 2014, Proferro once again strongly focused on its engineered casting solutions. The three-pillar strategy of casting-finishing-assembling and the HWS molding line are increasingly valued by the market. This allowed Proferro to further expand its customer portfolio in 2014, both in terms of casting and finishing of castings.
By placing a strong emphasis on its custom-made controllers for medium-sized series and its expertise in Electronic Manufacturing Services (EMS), PsiControl obtained a number of new customer projects. These included those in both the industrial machinery and healthcare Industries. Thereby, the tandem between the production sites in Ypres and Rasnov is an important asset for PsiControl.
During the year, PsiControl participated in a number of exhibitions to introduce its SwipeStat platform, which responds to the increasing demand for interfaces based on touch technology.
In 2014, the Industries Division continued to invest in the renewal and modernization of its technology and production facilities. Proferro, for instance, invested on expanding the casting area to increase the production rate of nodular cast iron on the HWS molding line. The investments of PsiControl included new warehouse space and a new 3D Automated Optical Inspection (AOI) installation in Ypres.
Outlook
Picanol hopes that the global market for weaving machines in 2015 will remain at approximately the same level as in 2014. The order book is almost full for the first half of 2015, thanks to the growing demand for quality and technology, and this is supported by the favorable euro exchange rate.
The second half of the year is currently less clear as investment decisions regarding new machinery may be affected by the prices for energy and raw materials as well as exchange rate fluctuations. Based on the outlook of Weaving Machines, Industries also predominantly aims at further growth in 2015, albeit different across the various markets.
For the first half of 2015, the Picanol Group expects to realize an increase in turnover. This is estimated to be between the turnover recorded during the first half of 2013 and that of the first half of 2014.
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 is absolutely essential.