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| TenCate's profits, though reduced from those of the second quarter of 2008, remain healthy |
In advance of the publication of the half-year figures on Wednesday 26 August 2009 and on the basis of provisional results, it is announced TenCate's net profit for the second quarter fell back by approximately 26% compared with the second quarter of 2008. With a stringent cost reduction policy and a tight liquidity management, as of 30 June 2009 TenCate remained well within the covenants agreed with the banks. The debt / EBITDA ratio improved compared to the previous quarter to approximately 2.5 (covenant 3.0).
Performance
As a result of the current economic climate TenCate has given priority to managing financial risks. Priority was given to debt reduction and maintaining a strong balance sheet, above short-term profit.
Sales in the second quarter fell back 24% compared with the second quarter of 2008 to approximately € 230 million. For the first six months sales amounted to approximately € 430 million (-15%).
Profit was negatively corrected to take account of the downward revaluation of a non-strategic minority interest of the Geosynthetics group amounting to approximately € 5 million. At the end of the second quarter the 50% interest in Geofabrics Australasia Pty Ltd was sold, with a book profit of approximately € 10 million.