Picanol Group realises the strongest Half Year in its history
The Picanol Group is an international, customer-oriented group specialized in the development, production and sale of weaving machines, engineered casting solutions and custom made controllers. The group develops, manufactures and sells through Weaving Machines (Picanol) high-tech weaving machines, based on air (airjet) or rapier technology
Increased turnover forecast for 2016 based on a well-filled order book
The Picanol Group realised a consolidated turnover of EUR 329.7 million euros in the first half of 2016, an increase of 27 % compared to EUR 259.8 million euros in the first half of 2015.
As previously announced, the Weaving Machines division experienced a continued high global demand for Picanol weaving machines in the first half of 2016, during which time the group focused strongly on flexibility in order to handle production peaks. The Industries division also had a strong first half year thanks to the increased demand from Weaving Machines and projects at other customers, which allowed Proferro (foundry and mechanical finishing activities) and PsiControl (controllers) to realise a positive turnover growth.
These activities resulted in the first half of 2016 in a net profit of 48.1 million euros compared to 30.3 million euros in the same period in 2015. In addition, Tessenderlo Chemie NV contributed EUR 12.3 million to the net result in the first half of 2016 (compared to 11.7 million euros in the same period last year). The Picanol Group closed the first half of 2016 with a net profit of EUR 60.4 million euros, compared to EUR 42.0 million in the first half of 2015.
The turnover of the Industries division amounted to 87.1 million euros, an increase of 19% in comparison to 73.1 million euros in the same period in 2015. The higher demand from Weaving Machines resulted in a turnover increase for Industries in the first half of 2016. Moreover, the Industries division realized a turnover increase of 7% to other customers with a strong focus on castings and machining (Proferro) and its controller capacities (PsiControl) to attract new projects. During the first half of 2016, Proferro was able to further expand its customer portfolio, both in terms of casting and in the finishing of castings, although it also faced less favourable cyclical conditions, among other areas in the agricultural sector. PsiControl achieved further growth with existing customers and also undertook a number of new customer projects, including projects in the engineering industry, in healthcare and in the HVAC sector. Thanks to continued cost-control combined with improved productivity, the Industries division achieved an operating result of 8.9 million euros, compared to 4.9 million euros in the first half of 2015.
The turnover of the Weaving Machines division amounted to EUR 288.8 million euros, an increase of 30.4% compared to EUR 221.5 million in the same period last year. As expected and as previously announced, the Weaving Machines division experienced a strong first half in 2016 due to the increasing demand for quality and technology and backed by the favourable exchange rate of the euro. The operating result of the Weaving Machines division amounted to EUR 57.9 million versus EUR 35.3 million last year.
Based on the current order book and the continued demand for Picanol weaving machines, the Picanol Group has increased its turnover forecast for the full 2016 financial year. The group expects to achieve an increase in turnover in 2016 of approximately 10% compared to 2013, which was the best year in the history of the group. The Picanol Group is celebrating its 80th anniversary in 2016.
The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Moreover, the current uncertain economic and financial situation of the world market does not allow for long-term forecasts.
The balance sheet total of the Picanol Group increased by 11 % from EUR 564.9 million on 31 December 2015, to EUR 629.1 million on 30 June 2016. The working capital rose by EUR 21.9 million as a result of the increase of inventories and trade receivables due to the increased activity. Cash increased from EUR 77.3 million to EUR 93.5 million. During the first half of the year, the net cash flow from operational activities amounted to EUR 38.9 million. The Picanol Group invested in the first half of the year EUR 3.4 million in fixed assets and EUR 14.0 million in its associated company Tessenderlo Chemie. As at June 30, 2016, the Picanol Group has 13958384 shares in Tessenderlo Chemie (or 32.5 % of the outstanding shares as at 30/06/2016).