Investment of Rs. 12 million euros for Ypres approved
In line with the earlier forecast, the Picanol Group realized a consolidated turnover of 461.75 million euros in 2012 compared to 466.95 million euros in 2011. In the second half of 2012, the group realized a turnover of 242.66 million euros, an increase of 10.7 per cent compared to 219.09 million euros in the first six months. The group closed 2012 with a REBIT of 71.85 million euros compared to 67.26 million euros the previous year.
The Picanol Group’s gross profit for the financial year 2012 was 103.09 million euros, a slight increase compared to 101.14 million euros in 2011. The gross margin increased from 21.7 per cent to 22.3 per cent. The operation result decreased from 76.07 million euros in 2011 to 72.27 million euros in 2012, as the result in 2011 includes other income related to the sale of the Steel Heddle activities for an amount of 9.5 million euros. The recurrent profit (without other operating income and expenses) increased by 4.6 million euros despite the lower turnover.
As was the case in 2011, the Weaving Machines Division experienced a strong year. Despite a hesitant start resulting from the weaker order book at the end of the previous year, 2012 was characterized by a high global demand for Picanol weaving machines. This was due to, amongst others, the success of the new weaving machines, the favorable exchange rate of the euro against the yen and the strong global sales and services network. In 2012, the Industries Division was commercially successful with both new customers and new orders from the existing customers.
The Board of Directors approved investments at Ypres for an amount of 12 million euros. The plan includes construction of a new test area for weaving machines and expansion of the HWS molding line (Industries). In combination with further productivity and quality improvements, the Picanol Group wants to increase its competitiveness with these targeted investments in Ypres.
Following ITMA Barcelona in September 2011, Picanol successfully participated in a number of international trade fairs in 2012 where it profiled itself as the technological market leader in rapier and airjet weaving machines. Picanol focused mainly on the new weaving machines – the OMNIplus Summum and positive rapier – as well as its added value in the weaving of technical textiles. Its ambition will remain to further develop its technological market leadership. It now strongly focuses on (weaving) performance, quality, energy consumption, robustness, waste reduction and the ease of use of its weaving machines.
In 2012, the Picanol Group also invested in the further expansion of its global sales and services network, including a new headquarters in India and a new office for Picanol of America. Furthermore, a new warehouse was built at the production site in Suzhou (China) to optimize logistics.
In 2012, the Industries Division was commercially successful with its engineered casting solutions and customized controllers, both with new customers and new orders from existing customers. From the second half of the year, the activities came under pressure due to the increasing economic and financial uncertainty among customers, despite the well-filled order book for the Weaving Machines Division.
Outlook
For the first six months of 2013, the order books for both divisions are well-filled. The outlook for the second half is less clear, since exchange rate changes and/or volatile energy and commodity prices may cause uncertainty in the market.
Innovation, technology and ongoing R&D efforts remain crucial to the international success of Picanol. In 2013, it will continue to expand its role as technological market leader by increasing the product range of its weaving machines and by offering applications for new market segments. The Industries Division will increase its activities on the market in 2013. In addition, increasing the competitiveness through further productivity and quality improvements, as well as targeted investments is a top priority in 2013.
To this end, the Board of Directors approved investments at Ypres for an amount of 12 million euros. The plan includes the construction of a new test area for weaving machines, the expansion of the HWS molding line and the purchase of several latest machines.
The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy with ever-changing exchange rates. Due to the cyclical nature of the textile market, strict cost-control is absolutely essential.
Picanol is an international, customer-oriented group specialized in the development, production and sale of weaving machines and other high-technology products, systems and services. The group develops, manufactures and sells high-tech weaving machines based on air (airjet) or rapier technology and also offers its customers such products and services as weaving accessories, training, upgrade kits and spare parts. For more than 75 years, it has played a pioneering role in the industry worldwide, and is one of the current world leaders in weaving machines production.
Proferro comprises the foundry and the group’s machining activities. It produces cast iron parts for compressors, agricultural machinery and weaving machines. Through PsiControl Mechatronics, the group specializes in the design, development, manufacturing and support of a.o. controllers for various industries. Melotte develops and produces innovative product solutions using Direct Digital Manufacturing (DDM) and Near-to-Net-Shape Manufacturing (NNSM) technologies.