The Picanol Group realized a consolidated turnover of 131.27 million euros in the third quarter of 2013, which represents an increase of 13 per cent compared to 116.62 million euros over the same period in 2012. The group confirms its earlier forecast to achieve a slight increase in turnover in the second half of 2013 compared to the stronger second half of 2012.
Based on the strong order book in the first half of 2013, the Weaving Machines Division realized another strong quarter. The Industries Division also experienced a slight increase in activities in the third quarter compared to the same period last year. This was due to an increase in demand for weaving machines.
Since improving competitiveness through further productivity and quality improvements and targeted investments is a top priority, the Board of Directors approved investments for Ypres worth 17.5 million euros in 2013. The construction of a new test area and training center for weaving machines in Ypres is on schedule. Construction in Ypres will be completed in the spring of 2014.
Meanwhile, SNPE SA and the Picanol Group have a binding agreement for the sale by SNPE SA to the Picanol Group of a stake held by it in Tessenderlo Chemie NV, representing 27.6 per cent of its share capital. This transaction is subject to regulatory approval.
Outlook
Based on the current market situation, the Picanol Group confirms its earlier forecast to realize a slight turnover increase in the second half of 2013 compared to the stronger second half of 2012.
For the coming months, however, the group is expecting increasing pressure on volumes and margins, which is partly due to the strong euro. For 2014, the group takes into account a slowdown of the worldwide weaving machine market.
The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. In view of the cyclical nature of the textile market, strict cost control is absolutely essential.