Over-reliance on US defence spending hurts TenCate
01/03/2013
Its figures for 2012 show revenues of EUR 1.05 billion compared to EUR 1.14 billion the year before, a decline of almost 8.6%. This yielded net profits of EUR 22.3 million in 2012, a decrease of 62% on the previous year’s figure.
Revenues for its textiles business decreased by EUR 78 million to EUR 461 million. The company said a loss of “high-grade US defence revenues” was the main reason for this.
Chief executive, Loek de Vries, said on announcing the results: “The unexpectedly sharp decrease in sales in the US defence market resulted in a significant reduction in the sales of TenCate Defender M and the armour portfolio. TenCate has continually based its outlook on forecasts from the US defence authorities, who displayed increasing reticence, partly in view of the US presidential elections and the threat of the fiscal cliff. This had a major impact on the performance of the group as a whole. The US defence market represents a large proportion of total revenues.”
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