Earnings Release • Feb 27, 2013
Earnings Release
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PRESS RELEASE Regulated information 27 February 2013 (8.30am)
– CONSOLIDATED & AUDITED RESULTS 2012 –
INVESTMENTS OF 12 MILLION EUROS APPROVED FOR YPRES
As was the case in 2011, the Weaving Machines division experienced a strong year. Despite a hesitant start resulting from the weaker order book at the end of the previous year, 2012 was characterized by a high global demand for Picanol weaving machines. This was due to, amongst others, the success of new Picanol weaving machines, the favorable exchange rate of the euro against the yen and the strong global sales and services network. In order to handle production peaks, Picanol had to focus strongly on both quality and flexibility in 2012.
Following ITMA Barcelona in September 2011, Picanol successfully participated in a number of international trade fairs in 2012, where it profiled itself as the technological market leader in rapier and airjet weaving machines. Picanol focused mainly on the new weaving machines – the OMNIplus Summum and positive rapier – as well as its added value in the weaving of technical textiles. The ambition of Picanol will remain to further develop its technological market leadership. Picanol strongly focuses on (weaving) performance, quality, energy consumption, robustness, waste reduction and the ease of use of its weaving machines.
In 2012, the Picanol Group also invested in the further expansion of its global sales and services network, including a new headquarters in India and a new office for Picanol of America. Furthermore, a new warehouse was built at the production site in Suzhou (China) to optimize logistics.
In 2012, the Industries division was commercially successful with its engineered casting solutions and customized controllers, both with new customers and new orders from existing customers. From the second half of the year, the activities came under pressure due to the increasing economic and financial uncertainty among customers, despite the well-filled order book for the Weaving Machines division.
The Picanol Group's consolidated turnover for the full financial year 2012 was 461.75 million euros, a slight decrease of 1% compared to 466.95 million euros in 2011. The turnover of Picanol NV in 2012 amounted to 329.45 million euros, compared to 348.87 million euros in 2011. The turnover decreased by 5.6% as a result of a weaker first half year.
The Picanol Group's gross profit for the financial year 2012 was 103.09 million euros, a slight increase compared to 101.14 million euros in 2011. The gross margin increased from 21.7% to 22.3%. The operation result decreased from 76.07 million euros in 2011 to 72.27 million euros in 2012, as the result in 2011 includes other income related to the sale of the Steel Heddle activities for an amount of 9.5 million euros. The recurrent profit (without other operating income and expenses) increased by 4.6 million euros despite the lower turnover.
Thanks to the continued cost control and the favorable exchange rate of the euro against the yen, the Picanol Group managed to close 2012 with a REBIT of 71.85 million euros, compared to a REBIT of 67.26 million euros in 2011. The Picanol Group closed 2012 with a net profit of 55.30 million euros, compared to 61.01 million euros in 2011 (including non-recurring income of 9.5 million euros realized by the sale of the Steel Heddle activities).
The Board of Directors will propose to the General Meeting on 17 April 2013 not to pay out a dividend for the 2012 financial year.
For the first six months of 2013, the order books for both divisions are well-filled. The outlook for the second half is less clear, since exchange rate changes and/or volatile energy and commodity prices may cause uncertainty in the market.
Innovation, technology and ongoing R&D efforts remain crucial to the international success of Picanol. In 2013, Picanol will continue to expand its role as technological market leader by increasing the product range of its weaving machines and by offering applications for new market segments. The Industries division will increase its activities on the market in 2013. In addition, increasing the competitiveness through further productivity and quality improvements, and targeted investments is a top priority in 2013.
To this end, the Board of Directors approved investments at Ypres for an amount of 12 million euros. The plan includes the construction of a new test area for weaving machines, the expansion of the HWS molding line and the purchase of several production machines.
The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy with ever-changing exchange rates. Due to the cyclical nature of the textile market, strict cost-control remains of the essence.
| ANNUAL RESULTS 2012 (Consolidated & audited) |
|
|---|---|
| Picanol Group (in '000 of euros) | 2012 | 2011 |
|---|---|---|
| Sales | 461,751 | 466,953 |
| Cost of sales | -358,659 | -365,814 |
| GROSS PROFIT | 103,092 | 101,139 |
| Gross profit as % on sales | 22.3% | 21.7% |
| General and administrative costs | -16,077 | -17,538 |
| Sales and marketing costs | -15,165 | -16,337 |
| Other operating income | 558 | 9,721 |
| Other operating expenses | -133 | -916 |
| OPERATING RESULT | 72,275 | 76,069 |
| Total interest income | 3,997 | 1,138 |
| Total interest expenses | -1,233 | -750 |
| Other financial income | 942 | 892 |
| Other financial expenses | -914 | -621 |
| PROFIT OR LOSS BEFORE TAXES | 75,067 | 76,728 |
| Taxes | -19,766 | -15,716 |
| PROFIT OR LOSS | 55,302 | 61,013 |
| SHARE OF MINORITY INTERESTS | 0 | 0 |
| SHARE OF THE GROUP IN PROFIT/LOSS | 55,302 | 61,013 |
| SHAREHOLDER'S EQUITY | 217,661 | 162,828 |
| TOTAL BALANCE SHEET | 349,812 | 288,263 |
| REBIT | 71,850 | 67,263 |
REBIT: Operating result – other operating income + other operating expenses
| (in '000 of euros) | 2012 | 2011* |
|---|---|---|
| Operating result | 72,275 | 76,069 |
| Gross operating cash flow | 79,912 | 77,696 |
| Net operating cash flow** | 38,245 | 74,564 |
| Net cash flow from investment operations*** | -3,494 | 9,906 |
| Cash flow from finance operations | 208 | -4,605 |
| Adjustments to cash and cash equivalents | 34,703 | 82,860 |
*An adjustment was made to the figures for the 2011 financial year as a result of the sale of the Steel Heddle activities of GTP Greenville
** The net operating cash flow decreased compared to last year due to the increase in working capital resulting from the increased production
*** The net cash flow from investment operations was in 2011 significantly influenced by the sale of the Steel Heddle activities of GTP Greenville.
| (in '000 of euros) | 2012 | 2011 |
|---|---|---|
| Gross profit | 5.82 | 5.71 |
| Operating results | 4.08 | 4.29 |
| Profit before taxes | 4.24 | 4.33 |
| Basic earnings per share | 3.12 | 3.45 |
| Earnings per share after dilution | 3.12 | 3.45 |
| Number of shares | 17,700,000 | 17,700,000 |
The auditor confirms that the audit is substantially completed, and did not reveal any significant adjustments to the financial information included in the press release. The auditor has issued an unqualified opinion on the consolidated financial statements. The full report by the auditor is included in the annual report.
Deloitte Bedrijfsrevisoren BV ovve CVBA Represented by Mario Dekeyser
Currently, the Picanol Group has some 15 vacancies for engineers and technically skilled workers at its headquarters in Ypres. The vacancies are published on the website www.picanolgroup.com/jobs.
The annual report for the 2012 financial year and the yearly information are available with effect from 27 February 2013 on the corporate website www.picanolgroup.com.
General meeting 17/04/2013 Trading update Q1 17/04/2013 (after market closing) General meeting 16/04/2014
Publication of half-year results 27/08/2013 (before market opening) Trading update Q3 29/10/2013 (before market opening) Publication of 2013 annual results 25/02/2014 (before market opening)
The Picanol Group is an international, customer-oriented group specialized in the development, production and sale of weaving machines and other high-technology products, systems and services.
Division Weaving Machines: Picanol develops, manufactures and sells high-tech weaving machines based on air (airjet) or rapier technology. Picanol supplies weaving machines to weaving mills worldwide, and also offers its customers such products and services as weaving accessories, training, upgrade kits and spare parts. For more than 75 years, Picanol has played a pioneering role in the industry worldwide, and is one of the current world leaders in weaving machine production.
Division Industries: Proferro comprises the foundry and the group's machining activities. It produces cast iron parts for e.g. compressors, agricultural machinery, and Picanol weaving machines. Through PsiControl Mechatronics, the group specializes in the design, development, manufacturing and support of a.o. controllers for various industries. Melotte develops and produces innovative product solutions using Direct Digital Manufacturing (DDM) and Near-to-Net-Shape Manufacturing (NNSM) technologies.
In addition to the headquarters in Ypres (Belgium), the Picanol Group has production facilities in Asia and Europe, linked to its own worldwide sales and service network. In 2012, the Picanol Group realized a consolidated turnover of 461.75 million euros. The Picanol Group employs more than 1,950 employees worldwide and is listed on NYSE Euronext Brussels (PIC). The Picanol Group was founded in 1936 and celebrated its 75th anniversary in 2011.
For further information please contact: Frederic Dryhoel, Corporate Communication Manager, at +32 (0)57 22 23 64 or by e-mail: [email protected]
This press release is also available on the Picanol Group's corporate website: www.picanolgroup.com
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