Belgium-based Picanol Group, which is celebrating its 50th anniversary in China, saw its revenue plunge 28% year-on-year in the first six months of 2014, in what it called a significant slowdown period.
Picanol reported sales of Euro 219.9 million in the first half of 2014, down 28% compared with first half of 2013. Turnover in the first half of 2014 was equivalent to that reported in first half of 2012.
Picanol said the Weaving Machines division was confronted with a significant global slowdown in the first half of 2014.
And although its Industries division experienced a lower demand from the Weaving Machines division, it was able to realize growth from external customers in the first half of 2014.
Alongside, the significant decline in sales, first half of 2014 net profit also sank around 42% to Euro 24.6 million from Euro 42.4 million in the same period in 2013.
However the addition of net profit of Euro 5.5 million from Tessenderlo Chemie NV helped net profit climb to Euro 30.1 million.
Looking at the current market situation, Picanol Group is expecting sales as well as a net profit decline in the second half of 2014, when compared with the same period of the previous year.
Picanol said construction work of the new test area and training center for weaving machines in Ypres has been completed and inauguration will take place on September 11.
The textile machinery producer also informed that in combination with further productivity and quality improvements, the Picanol Group wants to improve its competitiveness in Ypres too.
It said it will also continue to focus on product development and innovation. In June 2014, Picanol introduced its new GTMax-i rapier weaving machine at the ITMA Asia + CITME 2014 show.
