Picanol Weaving Machines experiences a strong year in 2010

The consolidated turnover of the Picanol Group for the 2010 financial year amounts to 395.77 million euros, an increase in turnover of 58% compared to the turnover of 250.23 million euros in 2009.

The turnover of Picanol NV increased by 55% from 170.21 million euros in 2009 to 264.08 million euros in 2010, mainly as a result of a strong increase in the volume of weaving machines sold. The contribution of Picanol NV’s turnover to the consolidated turnover totals 66.7% in 2010.

The gross profit of the Picanol Group for the 2010 financial year was 81.94 million euros, compared to 23.62 million euros in 2009. The gross margin increased from 9.4% to 20.7%, mainly because the fixed production costs did not increase in line with the higher turnover.

As a result of the strong increase in turnover, a further decrease in the general and administrative costs and leaving out the the restructuring costs, the operating result increased from -28.17 million euros in 2009 to 46.73 million euros in 2010. The operating result in 2009 included restructuring costs of 12.02 million euros.

Weaving Machines

The Weaving Machines division experienced a strong year in 2010, mainly as a result of the quicker than expected recovery of the weaving machine market in Asia. Particularly in China, the market for locally produced machines started to recover at the end of 2009. The facility in Suzhou (China) was the first to profit from the improving Chinese market. From the second quarter, exporting textile companies were also running at a cruising speed.

This resulted in a recovery in the demand for weaving machines produced in Ypres. In the second half of 2010, the market remained good, which was also due to the favorable exchange rate of the Euro. In the fourth quarter of 2010, the Chinese demand for weaving machines slowed down; one of the reasons being the continuously increasing price of cotton and the volatile exchange rates. However, this effect was compensated for by an increasing demand from other regions in the world. Sales of spare parts and weaving accessories also profited from a favorable market in 2010.

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