The company achieved a net profit of EUR 52.2 million, compared to EUR 48.1 million in the same period in 2016 before Tessenderlo Group nv contributed EUR 5.8 million to the net result in the first half of 2017, compared to EUR 12.3 million in the same period last year. Therefore, the Picanol Group closed the first half of 2017 with a net profit of EUR 58.1 million, compared to 60.4 million euros in the first half of 2016.

The Weaving Machines division again experienced a strong first half in 2017, having ended 2016 with a well-filled order book. Increasing demand for technology and quality brought strong sales, especially in Asia, with market share increases in many markets, the company reports. As a result, Picanol placed a record number of weaving machines on the market in the first half of 2017.

Half yearly results

During the first half of 2017, the Picanol Group realised a consolidated turnover of EUR 364.7 million. Both divisions saw their turnover increase based on the higher volumes in the first half of 2017.

Gross profit in the first half of 2017 amounted to EUR 90.3 million, compared to EUR 85.8 million in the first six months of 2016 with a gross margin percentage of 25%. The operating result (EBIT) amounted to EUR 71.2 million compared to EUR 66.9 million last year, or an EBIT-margin of +19.5% versus +20.3% in the first half of last year. Income taxes amounted to EUR -20.1 million, compared to EUR -19.3 million last year, or an effective tax rate of 27.8% versus 28.6% last year.

Weaving machines

The turnover of the Weaving Machines division amounted to EUR 316.3 million, an increase of 10% compared to EUR 288.8 million in the same period last year. As expected, the Weaving Machines division experienced a strong first half in 2017, having ended 2016 with a well-filled order book.

Increased demand for technology and quality (mainly from Asia), which was partly due to the success of new weaving machines such as the GTMax-i rapier weaving machine, resulted in strong sales and increased market share in many markets. As a result, Picanol placed a record number of weaving machines on the market in the first half of 2017.

Sales of parts and accessories have followed the positive trend of the weaving machines. The operating result of the Weaving Machines division amounted to EUR 62.3 million versus EUR 57.9 million last year.

Industries

The turnover of the Industries division amounted to EUR 100.4 million, an increase of 15% in comparison to EUR 87.1 million in the same period in 2016. The higher demand from Weaving Machines resulted in a turnover increase for Industries in the first half of 2017.

The Industries division achieved an operating result of EUR 8.8 million, compared to EUR 8.9 million in the first half of 2016. Profit margins, however, were affected by increasing material prices.

Outlook

The order book for the second half of 2017 is well-filled, according to the manufacturer. The Picanol Group expects a slight increase in turnover over the full 2017 financial year compared to 2016 – the best result in the history of the group – 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,” says the company. “Due to the cyclical nature of the textiles market, strict cost-control remains of the essence. Picanol Group’s reliance on the cyclic textiles market has been considerably reduced, as a result of the strong Industries growth and the contribution of Tessenderlo Group to the results.”

www.picanolgroup.com