In line with the earlier forecasts, the Picanol Group realized a consolidated turnover of 559.98 million euros in 2013, representing an increase of 21 per cent compared to revenues of 2012.
The Weaving Machines Division experienced a record breaking year in 2013. Picanol had a strong start to the year based on the well-filled order book at the end of 2012. The high global demand for the company weaving machines in the first half of the year resulted in the production of a record number of weaving machines, whereby increased attention was paid to handling the various production peaks. The second half was characterized by an increasing pressure on volumes and margins, partly due to the strong euro and the slowdown in major textile markets.
The Industries Division was able to continue the positive trend of recent years in the second half of 2013, by successfully focusing on its engineered casting solutions (Proferro) and controller competences (PsiControl).
The Picanol Group closed 2013 with a net profit of 73.17 million euros compared to 55.30 million euros in 2012. The construction of a new test area and new training center for weaving machines in Ypres remains on schedule. Construction in Ypres is expected to be completed by the summer of 2014.
Weaving machines
The Weaving Machines Division had a strong start to 2013 based on the well-filled order book at the end of 2012. The first half of the year was characterized by a persistent high global demand for the company weaving machines. This resulted in the production of a record number of weaving machines, whereby increased attention was paid to handling the various production peaks. The sale of parts and accessories followed the positive trend of the weaving machines. The second half of the year was characterized by an increasing pressure on volumes and margins, which was partly due to the strong euro.
In 2013, Picanol successfully participated in a number of international trade fairs where it profiled itself as the technological market leader in rapier and airjet weaving machines. Among other events, it participated in the Dhaka International Textile & Garment Machinery Exhibition (Bangladesh), Tecnotextil Sao Paulo (Brazil), Indo InterTex Jakarta (Indonesia), ITM Istanbul (Turkey), TechTextil Frankfurt (Germany), CAITME Uzbekistan and TechTextil Mumbai (India). Picanol focused mainly on the new weaving machines – the OMNIplus Summum and positive rapier OptiMax – as well as its added value in the weaving of technical textiles.
In 2013, Picanol also invested in the further expansion of its international network. For instance, a new logistics zone for weaving machines was put into use at the production facility in Suzhou (China) in early 2013. In March 2013, Picanol opened its new US headquarters in Greenville (South Carolina). Still in 2013, the company was the first European weaving machine manufacturer to achieve the status of Authorized Economic Operator, a customs standard awarded to companies that meet strict standards in the field of control systems for supply chain and financial ratios.
Industries Division
The Industries Division experienced a strong year in 2013, thanks to an increase in demand from weaving machines and projects for customers in other sectors. At Proferro, the three-pillar strategy of casting, finishing and assembly and the HWS molding line are increasingly appreciated by the market. This allowed Proferro to further expand its customer portfolio in 2013 with new customers in both casting and for the finishing of castings. It resulted in an increase in activities in the markets for compressors, agricultural machinery and construction machinery.
In 2013, PsiControl again focused strongly on its custom-made controllers and its expertise in Electronic Manufacturing Services. This resulted in an increase in both the R&D activities and the electronics assemblies with a positive impact on the production facilities in Ypres and Rasnov.
In the field of R&D, PsiControl is responding to the increasing demand for interfaces based on touch technology with its new user interface SwipeStat. Due to the flexible design, the SwipeStat can be used in various environments and applications that require a compact, budget-friendly and intuitive user interface, such as a room thermostat or an industrial machine controller.
Also in 2013, the Industries Division continued to invest in the renewal and modernization of its technology and production facilities, including a new core shooter (Proferro) and a new coating line (PsiControl).
Investment plan
Innovation, technology and ongoing R&D efforts remain crucial for the international success of the Picanol Group. It is still the ambition of Picanol to continue to strengthen its role as technological market leader by expanding the range of its weaving machines and by offering applications for new market segments. In combination with a global sales and service network, the group strongly focusses on (weaving) performance, quality, energy consumption, robustness, waste reduction and the ease of use of its weaving machines.
Outlook
The Picanol Group foresees a significant slowdown in the global weaving machine market for 2014, partly as a result of lower growth expectations and currency fluctuations in major textile markets in Asia. Despite signs of recovery in the US and Europe, the Weaving Machines Division expects a more difficult 2014, with a considerably weaker order book than at the start of 2013. Due to the expected slowdown in the weaving machine market, Industries is mainly aiming for further growth with customers in other markets in 2014.
For the first half of 2014 the Picanol Group expects to realize a turnover below that of 2013, more in line with the first half of 2012.
The Picanol Group remains cautious, as it is active as an export-oriented company in a volatile world economy. Due to the cyclical nature of the textile market, strict cost control is absolutely essential.