Picanol: Strong order book from the first half of the year generates turnover increase in third quarter

Company Performance

Picanol: Strong order book from the first half of the year generates turnover increase in third quarter

The Picanol Group realized a consolidated turnover of Euro 131.27 million in the third quarter of 2013, which represents an increase of 13% compared to Euro 116.62 million over the same period in 2012. The Picanol Group confirms its earlier forecast to achieve a slight increase in turnover in the second half of 2013 compared to the stronger second half of 2012.

Based on the strong order book in the first half of 2013, the weaving machines division realized another strong quarter. The Industries division also experienced a slight increase in activities in the third quarter of 2013 compared to the same period last year. This was due to an increase in demand from weaving machines and projects for other customers.

Investment plan

The Board of Directors approved investments for Ypres for an amount of Euro 17.5 million in 2013. The construction of a new test area and training center for weaving machines in Ypres is on schedule. According to the planning, construction in Ypres will be completed in the spring of 2014.

Outlook

Based on the current market situation, the Picanol Group confirms its earlier forecast to realize a slight turnover increase in the second half of 2013 compared to the stronger second half of 2012. For the coming months, however, the Picanol Group is expecting increasing pressure on volumes and margins, which is partly due to the strong euro. For 2014, the group takes into account a slowdown of the worldwide weaving machine market. The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. In view of the cyclical nature of the textile market, strict cost control remains of the essence.