Earnings Release • Mar 7, 2012
Earnings Release
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PRESS RELEASE Regulated information 7 March 2012 (8.30am)
– CONSOLIDATED & AUDITED RESULTS 2011 –
In 2011, the Industries division was able to continue the positive trend of 2010 by taking full advantage of its new molding line (Proferro), and its controller capacities (PsiControl Mechatronics).
Thanks to the strong turnover increase in both divisions over the full year and a continued cost control, Picanol managed to close 2011 with a REBIT of 67.26 million euros, compared to a REBIT of 47.59 million euros in 2010.
The first half of 2011 was characterized by a sustained high global demand for Picanol weaving machines, supported by the favorable exchange rate of the yen and the weaker euro. This resulted in a strong demand for weaving machines produced in Ypres, whereby increased attention was paid to handling the various production peaks caused by the strong order book. Sales of spare parts and accessories also did well. In the second half of the year, global demand for weaving machines slowed, under the influence of the increasing uncertainty due to the European debt crisis and limited availability of funding for investments.
By strongly focusing on a broader presence in the market and supported by a positive investment climate, Proferro managed to expand its customer portfolio with new customers in various sectors for both castings and for the finishing of castings. Last year, PsiControl Mechatronics again strongly focused on its customized controllers. This resulted in an increase in R&D activities and an increasing demand for electronic products and assemblies.
In the second half of 2011, the Picanol Group realized a turnover of 206.89 million euros, which represents a decrease of 20.5% compared to 260.06 million euros in the first half of 2011, and a decrease of 4.3% compared to the second half of 2010. The gross profit of the Picanol Group in the first half of 2011 amounted to 62.64 million euros, compared to 38.49 million euros in the second half of 2011 and 42.71 million euros in the second half of 2010. The gross margin decreased from 24.1% in the first half of 2011 to 18.6% in the second half of 2011.
The Picanol Group's consolidated turnover for the full financial year 2011 was 466.95 million euros, which represents an increase in turnover of 18% compared to 395.77 million euros in 2010. The turnover of Picanol NV increased to 348.87 million euros in 2011, an increase of 32.1% compared to 264.08 million euros in 2010. This was mainly due to strong volume increase in the sale of weaving machines.
The Picanol Group's gross profit for the financial year 2011 was 101.14 million euros, compared to 81.94 million euros in 2010. The gross margin increased from 20.7% to 21.7%. The operating result increased from 46.73 million euros in 2010 to 76.07 million euros in 2011. This was due to the strong turnover growth, strict cost control, and the capital gain linked to the sale of GTP Greenville, for an amount of 9.5 million euros.
As a result of the strong turnover growth in both divisions and sustained cost control, the Picanol Group managed to close 2011 with a REBIT of 67.26 million euros, compared to a REBIT of 47.59 million euros in 2010. Including non-recurring income of 9.5 million euros realized by the sale of GTP Greenville, the Picanol Group closed 2011 with a net profit of 61.01 million euros, compared to a net profit of 35.24 million euros in 2010.
The Board of Directors will propose to the General Meeting on 18 April 2012 not to pay out a dividend for the 2011 financial year. The Board believes that more value can be created within the group by investing in R&D, automation and robotics, and other investment projects.
In October 2011, the Picanol Group acquired the high-tech machinery of TBP Electronics Belgium NV from Geel. The acquisition fits into the growth plans of PsiControl Mechatronics focusing fully to the further expansion of its controller capacities.
For 2012, the Picanol Group takes into account a further slowdown of the weaving machine market. This is partly because of the growing economic uncertainty and limited availability of funding for investments, which means that customers are more cautious and investment decisions may be delayed or postponed. For 2012, the Picanol Group expects a further growth in the Industries activities, albeit differentiated into the different markets. The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. In view of the cyclical nature of the textile market, strict cost control remains of the essence.
| Picanol Group (in '000 of euros) | 2011 | 2010 |
|---|---|---|
| Sales | 466,953 | 395,774 |
| Cost of sales | -365,814 | -313,832 |
| GROSS PROFIT | 101,139 | 81,942 |
| Gross profit as % on sales | 21.7% | 20.7% |
| General and administrative costs | -17,538 | -18,011 |
| Sales and marketing costs | -16,337 | -16,337 |
| Other operating income | 9,721 | 609 |
| Other operating expenses | -916 | -1,474 |
| OPERATING RESULT | 76,069 | 46,730 |
| Total interest income | 1,138 | 1,077 |
| Total interest expenses | -750 | -1,116 |
| Other financial income | 892 | 1,178 |
| Other financial expenses | -621 | -978 |
| PROFIT OR LOSS BEFORE TAXES | 76,728 | 46,891 |
| Taxes | -15,716 | -11,648 |
| PROFIT OR LOSS | 61,013 | 35,244 |
| SHARE OF MINORITY INTERESTS | 0 | 0 |
| SHARE OF THE GROUP IN PROFIT/LOSS | 61,013 | 35,244 |
| SHAREHOLDER'S EQUITY | 162,828 | 98,948 |
| TOTAL BALANCE SHEET | 288,263 | 220,671 |
| REBIT | 67,263 | 47,595 |
| ANNUAL RESULTS 2011 |
(Consolidated & audited) |
|---|---|
| ------------------------ | -------------------------- |
REBIT: Operating result – other operating income + other operating expenses
| RESULTS | 2010-2011 ON HALF-YEARLY BASIS | (Consolidated & audited) |
|---|---|---|
| --------- | -------------------------------- | -------------------------- |
| Picanol Group (in '000 of euros) | H1 2010 | H2 2010 | H1 2011 | H2 2011 |
|---|---|---|---|---|
| Sales | 179,687 | 216,088 | 260,057 | 206,896 |
| Cost of sales | -140,459 | -173,373 | -197,415 | -168,398 |
| GROSS PROFIT | 39,228 | 42,715 | 62,641 | 38,498 |
| Gross profit as % on sales | 21.8% | 19.8% | 24.1% | 18.6% |
| General and administrative costs | -9,478 | -8,533 | -7,975 | -9,563 |
| Sales and marketing costs | -7,463 | -8,874 | -8,041 | -8,296 |
| Other operating income | 102 | 508 | 95 | 9,626 |
| Other operating expenses | -1,394 | -80 | -80 | -836 |
| OPERATING RESULT | 20,994 | 25,737 | 46,640 | 29,429 |
| Net financing expenses | -93 | 54 | 186 | 203 |
| Other financial result | 175 | 24 | 31 | 240 |
| PROFIT OR LOSS BEFORE TAXES | 21,077 | 25,815 | 46,857 | 29,871 |
| Taxes | -5,155 | -6,493 | -12,260 | -3,456 |
| PROFIT OR LOSS | 15,922 | 19,322 | 34,597 | 26,416 |
| SHARE OF THE GROUP IN PROFIT/LOSS | 15,922 | 19,322 | 34,597 | 26,416 |
| REBIT* | 22,286 | 25,308 | 46,624 | 20,639 |
* REBIT: Operating result – other operating income + other operating expenses
| (in '000 of euros) | 2011 | 2010 |
|---|---|---|
| Operating result | 76,069 | 46,730 |
| Gross operating cash flow | 87,162 | 56,239 |
| Net operating cash flow | 81,292 | 25,196 |
| Net cash flow from investment operations | 3,178* | -3,700 |
| Cash flow from finance operations | -4,605 | -14,374 |
| Adjustments to cash and cash equivalents | 82,860 | 8,918 |
*The net cash flow from investment operations was substantially impacted by the sale of GTP Greenville.
| (in '000 of euros) | 2011 | 2010 |
|---|---|---|
| Gross profit | 5.71 | 4.63 |
| Operating result | 4.29 | 2.64 |
| Profit before taxes | 4.33 | 2.65 |
| Basic earnings per share | 3.45 | 1.99 |
| Earnings per share after dilution | 3.45 | 1.99 |
| 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.
Kortrijk, 28 February 2012 The statutory auditor
DELOITTE Bedrijfsrevisoren BV ovve CVBA Represented by Kurt Dehoorne and Mario Dekeyser
The Picanol Group is currently looking for about 15 new employees for its headquarters and main production plant in Ypres. There are vacancies for R&D Engineers, Quality Engineer (Proferro), Service Manager China (Picanol), Financial Controller, Senior Developer Dynamics AX, Senior Developer SharePoint, Field Technicians and International Trainees (Young Engineers Program). The Picanol Group is also looking for CNC technicians (bottleneck job). Vacancies are announced on the website www.picanolgroup.com/jobs.
The annual report for the 2011 financial year and the yearly information are available with effect from 7 March 2012 onwards on the corporate website www.picanolgroup.com.
| General meeting | 18 April 2012 |
|---|---|
| Trading update Q1 | 18 April 2012 (after market closing) |
| Publication of half-year results | 28 August 2012 (before market opening) |
| Trading update Q3 | 30 October 2012 (before market opening) |
| Publication of 2012 annual results | 27 February 2013 (before market opening) |
| General meeting | 17 April 2013 |
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
The Weaving Machines division (Picanol) develops, manufactures and sells high-tech weaving machines based on air (airjet) or rapier technology (rapier). Picanol supplies weaving machines to weaving mills worldwide, and also offers its customers such products and services as training, upgrade kits, spare parts and service contracts. For 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
The Industries division covers all activities not related to weaving machines: Proferro comprises the foundry and the group's machining activities. It produces cast iron parts for e.g. compressors, pumps and agricultural machinery, and parts for Picanol weaving machines. Through PsiControl Mechatronics, the group specializes in the design, development, manufacturing and support of technological components, services and mechatronical system solutions for original equipment manufacturers in 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 2011, the Picanol Group realized a consolidated turnover of 466.95 million euros. The Picanol Group employs more than 1,900 employees worldwide and is listed on NYSE Euronext Brussels (PIC).
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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