PICANOL Group seventh consecutive year of strong results and record profit for 2016

PICANOL Group seventh consecutive year of strong results and record profit for 2016

In line with the previously announced forecast, the Picanol Group (Euronext: PIC) realised a consolidated turnover of EUR 639.78 million for the full 2016 financial year, which represented an increase in turnover of 20.8 % compared to EUR 529.34 million euros recorded in 2015. This means that the Picanol Group outperformed its previous record year (a turnover of EUR 559.98 million was recorded in 2013), and this all took place in the year that Picanol Group celebrated its 80th anniversary

Picanol

In 2016, the Weaving Machines division experienced a record breaking year. The growing demand for quality and technology created strong sales and an increased market share in many markets. This resulted in Picanol putting a record number of weaving machines on the market in 2016, thereby especially focusing on dealing with production peaks. The Industries division also had a strong year and increased its contribution to the group result thanks to a higher turnover in various sectors. This allows the Picanol Group to achieve its strategic ambition to further diversify the activities of the group.

The Picanol Group activities resulted in 2016 in a net profit of EUR 88.38 million compared to 60.6 million euros in 2015. In addition, Tessenderlo Chemie nv contributed EUR 31.34 million to the net result in 2016 (compared to EUR 25.09 millionin 2015). The group closed 2016 with a net result of EUR 119.73 million, compared to EUR 85.69 million in 2015.

■            The board of directors will propose the payment of a gross dividend of 0.1 euros (as in the previous year) at the annual general meeting on April 19, 2017, for a total amount of 1.77 million euros.

■            For the first six months of 2017, the order book is well-filled. The Picanol Group expects a slight increase in turnover for the first half of 2017 compared to the first half of 2016, but is taking into account a limited impact of rising commodity prices.

■            Currently, the Picanol Group has some 40 vacancies for its headquarters in Ypres.     The vacancies are published on its website.

Weaving Machines

In 2016, the Weaving Machines division experienced a record breaking year. The growing demand for quality and technology created strong sales – mainly in Asia and Europe – and an increased market share in many markets. This resulted in Picanol putting a record number of weaving machines on the market in 2016, thereby especially focusing on dealing with production peaks. The sale of parts and accessories followed the positive trend of the weaving machines.

In 2016, the OptiMax rapier weaving machine was taken out of production and replaced by the OptiMax-i, which was launched in 2015 and is the fastest rapier weaving machine in the world that is series-produced.

In 2016, Picanol further invested in the renovation and modernization of its production facilities, including the upgrade of the automated warehouse and the logistics systems. In combination with further productivity and quality improvements, Picanol aims to enhance its competitiveness through these targeted investments in Ypres.

Industries

The Industries division also had a strong year thanks to good growth in various sectors. Both Proferro and PsiControl were commercially successful with new customers and new orders from existing customers. On the other hand, Proferro was faced with a difficult economic situation in sectors such as agriculture.

In 2016, the Industries division further invested in the renovation and modernization of its technology and production facilities. Proferro invested, for instance, in various CNC machines in the finishing department, including a new fiber laser machine for the production of rapier components. The investments of PsiControl in 2016 included new 3D Automated Optical Inspection (AOI) installations.

Profit and Loss Account

In 2016, the Picanol Group realized a consolidated turnover of EUR 639.78 million euros over the full financial year, which represented an increase in turnover of 20.8 % compared to EUR 529.34 million in 2015. The turnover of Picanol nv increased in 2016 by 24 % compared to 2015, from EUR 409.8 million to 510.1 million euros, driven by the strong order book for weaving machines in 2016.

The gross profit of the Picanol Group for the 2016 financial year amounted to EUR 158.4 million, compared to EUR 117.05 million in 2015. The gross profit percentage increased from 22 % to 25 %. The operating result increased by 44.75 %, from EUR 83.58 million in 2015 to EUR 120.98 million euros in 2016.

The Picanol Group closed 2016 with a net profit of EUR 119.73 million, compared to a net profit of EUR 85.69 million in 2015. The share of the results of Tessenderlo Chemie nv for the full financial year 2016 was EUR 31.34 million euros (compared to EUR 25.09 million euros in 2015).

Dividend

The board of directors will propose the payment of a gross dividend of 0.1 euros at the annual General Meeting on April 19, 2017, for a total amount of EUR 1.77 million.

Outlook

For the first six months of 2017, the order book is well-filled. The Picanol Group expects a slight increase in turnover for the first half of 2017 compared to the first half of 2016, but is taking into account a limited impact of rising commodity prices.

The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost-control remains of the essence. The contribution of Tessenderlo Group to the result considerably reduced Picanol Group’s dependency on the cyclical textile market.

www.picanolgroup.com

www.picanol.be

www.letsgrowtogether.be


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