Sharp decline in orders led to sales at advanced weaving technology manufacturer Picanol Group plunging 25 per cent in 2014 as against in 2013.
In a press release, Picanol said it realised a consolidated turnover of €418.2 million in the full 2014 financial year compared to €559.9 million in 2013, which was the best year in the history of the group.
According to Picanol, the weaving machines division made a hesitant start to 2014 based on the weaker order book at the end of 2013.
“The first half of the year was characterised by a lower demand for weaving machines worldwide, which resulted in a sharp decline in orders compared to the record year of 2013,” it informed.
It added, “The demand for Picanol weaving machines increased in the fourth quarter of 2014 with the technological leadership of Picanol being further bolstered by the weaker euro.”
Lower demand from the weaving machines division also translated into a decrease in turnover for the Industries division in 2014.
However, the decrease in turnover was partly offset by rising sales to other customers, while Industries division strongly focused on engineered casting solutions and its controller capacities.
The Picanol Group closed the year 2014 with a net profit of €52.4 million as against €73.1 million in 2013.
In 2014, Picanol continued to invest in the renewal and modernisation of its production facilities. With further productivity and quality improvements, Picanol aims to improve its competitiveness in Ypres.
In addition to the acquisition of several new finishing machines, Picanol invested in a new test area and a new training center for weaving machines in Ypres.
In 2014, Picanol also celebrated the 20th anniversary of its production plant in Suzhou and over 50 years of presence in the Chinese market.
In the reporting year, the company also participated in a number of international trade fairs where it claims, it confirmed itself as the technological market leader in rapier and airjet weaving machines.
For the first time since the financial year 2007, the board of directors will propose the payment of a gross dividend of €0.1 at the annual general meeting on 15 April 2015, which totals to €1.8 million.
The Picanol Group is currently recruiting some 30 temporary workers for its production site in Ypres, to meet the deadlines on a number of projects.
For the first half of 2015, the Picanol Group expects to realise an increase in turnover, which is expected to be between sales posted in first half of 2013 and revenue posted in first half of 2014.
