| The company expects more growth in future due to increasing demand for industrial protective fabrics |
Despite the shortages, increased raw material costs, pressure on margins and integration costs at synthetic turf companies related to TenCate (downstream activities), profit growth amounted to 47%.
Loek de Vries, President and CEO of TenCate: ‘Sales in the third quarter are at approximately the same level as recorded in the top year 2008. A significant rise in sales is also expected in the fourth quarter, in view of the strong growth in industrial protective fabrics (TenCate Tecasafe™ Plus), the increasing demand for TenCate Defender™ M products and an improved outlook for aerospace composites.
Despite shortages and price rises in raw materials (fibres) as well as pressure on margins and integration costs at synthetic turf companies related to TenCate (downstream activities), profit growth amounted to 47%.
Highlights of third quarter of 2010:
- Sales € 273 million (+22% compared to 3rd quarter of 2009)
- Increase in EBITA of 40% compared to 3rd quarter of 2009
- Net profit up 47% compared to 3rd quarter of 2009
- Substantial recovery in the result by European activities in protective fabrics
- The TenCate Geosynthetics & Grass sector exhibits an outperformance
- Profit growth hampered by tight conditions in a number of raw materials markets and costs related to the coordination of downstream activities in the synthetic turf market
- Turnaround at TenCate Enbi proves successful
- Debt ratio 2.5 (3rd quarter of 2009: 2.5)
The close relationship with strategic market participants has led to an increased market share in synthetic turf fibres. These parties are enabling TenCate to strengthen its position in end markets and to make a positive contribution to quality improvements at system level.’