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TenCate trading update shows healthy second quarter profits

Published on 17 July 2009

TenCate's profits, though reduced from those of the second quarter of 2008, remain healthy
TenCate's profits, though reduced from those of the second quarter of 2008, remain healthy
Net profit second quarter well over €13 million

In advance of the publication of the half-year figures on Wednesday 26 August 2009 and on the basis of provisional results, it is announced TenCate's net profit for the second quarter fell back by approximately 26% compared with the second quarter of 2008. With a stringent cost reduction policy and a tight liquidity management, as of 30 June 2009 TenCate remained well within the covenants agreed with the banks. The debt / EBITDA ratio improved compared to the previous quarter to approximately 2.5 (covenant 3.0).

Performance

As a result of the current economic climate TenCate has given priority to managing financial risks. Priority was given to debt reduction and maintaining a strong balance sheet, above short-term profit.

Sales in the second quarter fell back 24% compared with the second quarter of 2008 to approximately € 230 million. For the first six months sales amounted to approximately € 430 million (-15%).

Profit was negatively corrected to take account of the downward revaluation of a non-strategic minority interest of the Geosynthetics group amounting to approximately € 5 million. At the end of the second quarter the 50% interest in Geofabrics Australasia Pty Ltd was sold, with a book profit of approximately € 10 million.

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