Gamma Holding's belting tech gains from rising demand, H1
26 Aug '05
9 min read
High-quality textile-based products developer Gamma Holding NV announced the first half results.
Nearly all business units showed a recovery in the second quarter, following a weak first quarter. This recovery is principally due to an improvement in the cost structure and the focus on growth at Gamma Technologies. Gamma Holding's turnover in the first half of 2005 was EUR 431 million (2004: EUR 437 million), a decrease caused mainly in the first quarter.
The operating result in the first half of the year was a profit of EUR 19.5 million (2004: EUR 27.9 million). Restructuring expenses totalled EUR 6.1 million in the first six months, with Gamma Technologies accounting for EUR 1.1 million and Gamma Comfort & Style accounting for EUR 5.0 million. The greater part of these expenses related to the closure of Juapong Textiles in Ghana.
The operating result excluding restructuring costs was EUR 25.6 million (2004: EUR 28.1 million). This was due to a decline in the operating result of Gamma Comfort & Style, which was partly offset by an improvement in the operating result of Gamma Technologies. Furthermore cost reductions were not sufficient to offset entirely the increase in prices of raw materials. Currency movements had an effect of -5%.
The net group result was a profit of EUR 9.7 million (2004: EUR 14.1 million). The net group result excluding restructuring costs increased by 6% to EUR 15.3 million (2004: EUR 14.3 million).
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