For the year as a whole TenCate maintains its previously announced growth projection in respect of the trend in revenues for the company, barring unforeseen circumstances and currency effects.

 

Summary of first half of 2014 

-Revenues for the first half of 2014 remain unchanged in organic terms; 5% organic growth in revenues in the second quarter. 

-Substantial increase in revenues from composites and synthetic turf offsets virtually the entire decrease in defence-related revenues. 

-EBITA for the first half declines in organic terms by 13%; EBITA in the second quarter increases by 22% in organic terms. 

-Earnings per share €0.38 (H1 2013: €0.50). 

-Net debt / EBITDA ratio virtually unchanged at 2.87. 

-TenCate maintains expectation for the year as a whole; increase in defence revenues in second half of the year.  

 

The defence-related revenues within TenCate Protective Fabrics and TenCate Advanced Armour show, on the basis of the current order position, a more favourable picture for the second half of the year compared to the first half. This positive sentiment can be ascribed to recent orders for TenCate Defender M and the order positions for armour composites. 

 

Loek de Vries, Chairman and CEO of Royal Ten Cate: ‘After a weak first quarter, an improvement in revenues and result occurred in the second quarter. Revenues and EBITA increased in organic terms by 5% and 22% respectively in the second quarter. 

 

The policy-related strengthening of marketing and sales activities within the company and the introduction of composites into new markets showed positive results. As a result of strong growth in the composites and synthetic turf activities, the decline in revenues in defence markets was largely offset. 

 

The defence-related activities represented 4% of the revenues in the first half of 2014 (first half of 2013: 9%). Although defence budgets have been depressed for a prolonged period, TenCate is investing in innovations for this market. This has strengthened the market position in particular of TenCate Advanced Armour. 

 

TenCate expects revenues from defence markets to increase in the second half of the year. 

 

The previously announced revenue growth projection for the company remains unchanged for the year as a whole.’ 

 

Performance by sector 

Advanced Textiles & Composites sector 

The revenues of the Advanced Textiles & Composites sector declined in the first half of 2014 by 9% to €206.9 million (organic -7%, currency effect -2%). EBITA rose by 4% to €14.6 million (organic +7%, currency effect -3%).

 

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