Nonwoven Co RTC books profits with organic growth in H1
02 Sep '05
4 min read
High-performance textile and nonwoven fabrics products company Royal Ten Cate (RTC) announced the half-year result for 2005.
Royal Ten Cate half-year profits rise by 21 percent The net profit of Royal Ten Cate for the first half of 2005 increased by € 2.6 million (+21 percent) to € 15.0 million. Earnings per share increased to € 2.92 (+19 percent).
Sales rose by 16 percent to € 351 million, with organic growth accounting for 14 percent of the rise. The net effect of acquisitions and divestments on sales is +4 percent. The effect of currency movements on sales amounted to -2 percent. The operating result (EBIT) rose by 24 percent (organically by 26 percent) to € 19 million.
The second quarter showed a further rise in profit of 30 percent, including the € 2 million book profit on the sale of the companies of Mega Valves International in Northern Europe. The operating result in the second quarter rose by 7 percent to € 12.7 million. Organic growth in the second quarter accounted for an EBIT rise of 23 percent.
The comparative figures 2004 have been amended based on the new IFRS guidelines.
Advanced Textiles & Composites Sales in this sector rose by 44 percent to € 150 million, with the acquisition of Southern Mills accounting for 27 percent. Organic growth accounted for 17 percent. The operating result rose by 73 percent (organically +35 percent) to € 8.1 million. The EBIT margin rose to 5.4 percent.
Sales of multi-risk fabrics for professional wear and the outdoor market showed strong growth in both Europe and the USA. Southern Mills contributed significantly to profits through growth in sales and the measures taken to increase synergy. Cooperation with the European activities of Ten Cate in this area developed favourably. This led to the launch of new Southern Mills products on the European market. Here the more direct marketing approach that targets end-users (end-user marketing) has been a supporting factor.
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