Nonwoven Co RTC books profits with organic growth in H1
02 Sep '05
4 min read
The major part of the production at Ten Cate Permess (interlinings) has already been scaled down, thereby decreasing the loss in the second quarter.
Developments in the civil aviation industry, with the recent introduction by Airbus and Boeing of new types of aircraft that contain a higher proportion of composites (thermoplastics), are positive for the sales of the composite material Cetex®, made by Ten Cate. In the USA in particular, sales of composites over a broad area of application have increased. The market share in antiballistic composites is growing strongly.
Industrial Fabrics & Grass Sales in this sector rose by 20 percent. Sales rose organically by 24 percent but there was a negative currency effect of 4 percent. The rise in sales is thanks mainly to the American companies.
On average the costs of raw materials are at a significantly higher level than in the first half of 2004. Consequently, the added value (gross margin) throughout the whole sector is under some pressure. Thanks to good cost control, the operating result rose by 21 percent (organically +25 percent) and the EBIT margin remained stable.
The American Nicolon companies, with their wide range of products, exhibited growth in the field of geotextiles and other industrial fabrics. In Europe a stagnating project market has led to a restrained market and pressure on margins.
In the European artificial grass market, Ten Cate is the prominent market leader. Artificial grass for football is rapidly gaining ground and constitutes a large potential market in Europe and Asia. It is due partly to this that the number of suppliers is on the increase.
marketing@alchempro.com
