Picture for the future remains positive - Ten Cate
July 28, 2012 - Netherlands
TenCate releases financial report for first half of 2012.
Loek de Vries, President and CEO: 'The anticipated decrease in US Army- related sales proved to be greater than had been expected in the second quarter. The revenues anticipated for the current financial year were largely based on forecasts issued by the US Army with regard to the purchase of TenCate Defender M products.
Due to the strong growth in revenues and profit in the first half of 2011, principally as a result of an exceptional rate of growth in TenCate Defender™ M products, the performance in the first half of 2012 cannot, as indicated previously, be compared to that in the first half of 2011.
US budget discussions and the forthcoming presidential elections led to lower defence expenditure, partly due to a delay in releasing projects and to the cutting back of inventories in the US market.
The picture for the future remains positive, because TenCate materials protect army units and this theme continues to feature high on the political agenda. The protection of military personnel in crisis areas therefore remains a global growth market.
The present trend in sales of TenCate Defender M outside the United States provides a sound basis for a greater geographic breakdown in sales.
The composite markets are one of the strongest growth markets in the TenCate business portfolio, with organic growth expected to be well in excess of 10%. A sharpening of the strategic focus will be implemented in the buy & build strategy, with the aim of also achieving revenue growth outside the aerospace market.
The automotive market offers opportunities for the composite technologies developed by TenCate. This market is currently showing strong growth, partly as a result of current industrial trends.
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Loek de Vries, President and CEO: 'The anticipated decrease in US Army- related sales proved to be greater than had been expected in the second quarter. The revenues anticipated for the current financial year were largely based on forecasts issued by the US Army with regard to the purchase of TenCate Defender M products.
Due to the strong growth in revenues and profit in the first half of 2011, principally as a result of an exceptional rate of growth in TenCate Defender™ M products, the performance in the first half of 2012 cannot, as indicated previously, be compared to that in the first half of 2011.
US budget discussions and the forthcoming presidential elections led to lower defence expenditure, partly due to a delay in releasing projects and to the cutting back of inventories in the US market.
The picture for the future remains positive, because TenCate materials protect army units and this theme continues to feature high on the political agenda. The protection of military personnel in crisis areas therefore remains a global growth market.
The present trend in sales of TenCate Defender M outside the United States provides a sound basis for a greater geographic breakdown in sales.
The composite markets are one of the strongest growth markets in the TenCate business portfolio, with organic growth expected to be well in excess of 10%. A sharpening of the strategic focus will be implemented in the buy & build strategy, with the aim of also achieving revenue growth outside the aerospace market.
The automotive market offers opportunities for the composite technologies developed by TenCate. This market is currently showing strong growth, partly as a result of current industrial trends.
Click here to read more details: