Picanol keeps the growth trend alive for the last 18 months. After having record breaking sales and turnover scores Picanol still foresees a growth in Global Markets including Turkish Market. First half results are in accord with that forecast.
Picanol, an expert in rapier and airjet weaving technologies, has successfully increased turnover and profits in the first half of 2017. In line with the previously announced forecast, the Picanol Group (Euronext: PIC) realized a consolidated turnover of 364.7 million euros in the first half of 2017, an increase of 11% compared to 329.7 million euros in the first half of 2016. The Picanol Group expects a slight increase in turnover over the full 2017 financial year compared to 2016 – the best year in the history of the group – but is taking into account a limited impact of rising commodity prices. The Picanol Group closed the first half of 2017 with a net result of 58.1 million euros, compared to 60.4 million euros in the same period in 2016.
Picanol Marketing Communications Manager Erwin Devloo has indicated a growth in both Turkish and global markets for textile and private weaving machines in his first half of 2017 market evaluation. Devloo underlines this growth not being exclusive to a specific region or a department and thus meets their market expectations for the first half.
Picanol keeps the growth trend alive
Erwin Devloo has said; “Picanol puts rapier and airjet technologies on the market and we both increased our market share in both. With the half of 2107 I can say we have shown a continuous growth for the last 18 months. OptiMax-i in 2015, TerryMax-i and TERRYplus Summum models in 2016 had a positive effect for the growth” about the new solutions and the strength of products already present in the market.
Picanol has market and customer focused solutions and acts on these principals when they have a new investment or a development process. Remarking Picanol’s global strength, Devloo indicates the firm continues its tradition of investing in services and after-market transactions. Devloo said; “I can say for the Turkish market that we have recently reinforced our sales team. So we can insure a closer contact with Turkish market and Turkish weavers who are very important for us.”
Erwin Devloo emphasize a positive expectation in all markets as well as Turkish markets in 2017, he then continued laying further emphasis on Turkish market for them; “Turkish Market is one of the 5 biggest market for us, this is a market that we take reference with our rapier and airjet machines. The volume sold in Turkey in 2016 was very high, and despite a slight slowdown in investments in Turkey in the first half of 2017, we see the market again picking up and we expect the same result as in 2016.”
Picanol keeps the growth trend alive: a strong first half for Picanol weaving machines
The turnover of the Weaving Machines division amounted to 316.3 million euros; an increase of 10% compared to 288.8 million euros in the same period last year. As expected and as previously announced; 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 H1 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 62.3 million euros versus 57.9 million euros last year.
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 realize strong revenue growth.
Picanol keeps the growth trend alive: Picanol Group remain cautious
These activities resulted in the first half of 2017 in a net profit of 52.2 million euros; compared to 48.1 million euros in the same period in 2016. In addition, Tessenderlo Group nv contributed 5.8 million euros; to the net result in the first half of 2017 (compared to 12.3 million euros in the same period last year). The Picanol Group closed the first half of 2017 with a net profit of 58.1 million euros; compared to 60.4 million euros in the first half of 2016.
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. Picanol Group’s reliance on the cyclic textile market has been considerably reduced; as a result of the strong Industries growth and the contribution of Tessenderlo Group to the results.