From the Sector

Akzo Nobel N.V.  publishes results for second quarter 2022

Highlights Grow & Deliver (compared with Q2 2021)

• Revenue up 14% and 10% higher in constant currencies1, pricing up 16%
• ROS2 at 8.7% (2021: 13.3%), resulting from lower volumes and continued raw material and freight costs inflation
• Adjusted EBITDA at €337 million (2021: €419 million)
• Acquisition of Grupo Orbis completed in April 2022. Intended acquisition of Kansai Paint’s business in Africa announced in June 2022. Intended acquisition of the liquid wheel coatings business of Germany-based Lankwitzer Lackfabrik GmbH announced in July 2022

Highlights Q2 2022 (compared with Q2 2021)

• Pricing up 16%; offsetting the increase of raw material and other variable costs. Volumes 9% lower
• Operating income at €205 million (2021: €384 million), includes €44 million negative impact from Identified items (2021: €49 million net positive impact). OPI margin 7.2% (2021: 15.3%)
• Adjusted operating income3 at €249 million (2021: €335 million)
• Net cash from operating activities decreased to negative €52 million (2021: positive €168 million)
• Net income attributable to shareholders at €106 million (2021: €261 million)
• EPS from total operations at €0.60 (2021: €1.40); adjusted EPS from continuing operations at €0.84 (2021: €1.20)

Tata Communications, a global digital ecosystem enabler, announces its financial results for the quarter ended 30th June 2022.

Consolidated financial highlights

• Consolidated revenue stood at INR 4,311 crore (USD 558.9 Mn); increasing +5.1% YoY. Sequentially, growth in revenue followed upsides in the Data business
• Consolidated EBITDA came in at INR 1,077 crore (USD 139.7 Mn); enhanced +9.2% YoY, where margins stood at 25%, growing by 95 Bps YoY
• Consolidated PAT stood at INR 544 crore (USD 70.5 Mn) from INR 296 crore (USD 40.1 Mn) in Q1 FY22, marking an increase of +83.6% YoY
• Cash CAPEX for this quarter stood at USD 42.7 Mn relative to USD 46.2 Mn in Q1 FY22

Data services portfolio

• Data business revenues came in at INR 3,340 crore (USD 433.1 Mn), recording an increase of +7.6% YoY. Digital Platforms and Services delivered robust growth of +12.3% YoY
• EBITDA stood at INR 969 crore (USD 125.7 Mn), up +4% YoY backed by consistent delivery in Core Connectivity and Digital Platforms and Services
• The Core Connectivity portfolio reported growth of +3.6% YoY in revenue; EBITDA enhanced by +2.6% YoY, with margins coming in at 42.5%

EFI™ Reggiani, the industrial textile printing business of printing technology company Electronics For Imaging, Inc. (EFI), has broken ground on a new textile campus to accommodate ongoing growth. The new 20,000-square-metre campus in Comun Nuovo, Bergamo, Italy, is expected to be completed midyear in 2023.

Sustainability and employee well-being at the centre
The new facility was designed with environmental sustainability and employee well-being in mind. That focus includes plans to install 400 kilowatts of solar panels supplying 60% of the facility’s total energy requirements. Moreover, the building will benefit from superior thermal insulation that will ensure a reduction in heating and cooling costs. Numerous skylights in the facility will provide better natural lighting and a reduction in artificial lighting usage.
 
Green space on the campus was a priority in the design process, covering an estimated 20% of the total area. For a more welcoming work environment, the campus will also feature a canteen and gymnasium for employee use.
 
A 3,000-square-metre demo centre in the new facility will be nearly twice as large as the current EFI Reggiani demo centre in Grassobbio, Italy, offering a high-end, high-tech showcase for state-of-the-art EFI Reggiani printers, as well as Mezzera pre- and post-treatment and Jaeggli yarn treatment products. The demo centre will also feature EFI Reggiani’s recently acquired portfolio of Inèdit raster image processing (RIP) and workflow software solutions.
 
Transforming the textile industry through innovation in green
Since the launch of its first analogue printer, to its newest digital solutions, EFI Reggiani has at its core a heritage and expertise that have contributed to the transformation of the textile industry worldwide. With its total commitment to providing “Innovation in Green,” EFI Reggiani’s leadership is the result of extensive research targeted at improving productivity, quality and sustainability in its customers’ operations. The company is focused on optimising the textile manufacturing process – and reducing energy use, water consumption and overall environmental impact – to ensure customers’ business growth and profitability.
 
Over the years, EFI Reggiani’s product portfolio has continued to expand, ranging from rotary and flatbed printing machines, to scanning/multi-pass digital printers, to fast digital textile printers.

• Order intake of CHF 869.4 million, order backlog of more than CHF 2 100 million
• Sales of CHF 620.6 million, preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022
• EBIT of CHF -10.2 million, net result of CHF -25.2 million due to significant cost increases, additional costs, and acquisition-related expenses
• Action plan to increase sales and profitability
• Rieter site Winterthur
• Outlook

Rieter continued to be successful in the market in the first half of 2022. Based on the company’s technology leadership, innovative product portfolio and the completion of the ring- and compact-spinning system, a high order intake and a significant increase in sales were generated. The increase in sales was achieved even though preproduced deliveries in the three-digit million range had to be postponed until the second half of 2022. The order backlog is at a record level. Despite higher sales, the significant increase in material and logistics costs, additional costs for compensation of the material shortages and the expenditure incurred for the acquisition in the years 2021/2022 resulted in a loss. Rieter is implementing an action plan to increase sales and profitability. The sales process for the remaining land owned by Rieter was initiated.

Order Intake and Order Backlog
Rieter posted an order intake of CHF 869.4 million, which included CHF 176.6 million from the businesses acquired in the years 2021/2022. As expected, demand has thus returned to normal compared with the exceptionally high figure for the prior-year period, but remains well above the average figure for the last five years of around CHF 570 million (first half 2021: CHF 975.3 million, first half 2022 excluding acquisition effect CHF 692.8 million).

The regional shift in demand with investments in additional spinning capacity outside China along with investments in the competitiveness of Chinese spinning mills continues. Rieter benefits from its technology leadership, the innovative product portfolio and the completion of the ring- and compact-spinning system through the acquisition of the automatic winding machine business. The largest order intakes came from India, Turkey, China, Uzbekistan, and Pakistan.

On June 30, 2022, the company had an order backlog of more than CHF 2 100 million (June 30, 2021: CHF 1 135 million). Cancellations in the reporting period amounted to around 5% of the order backlog.

Sales
The Rieter Group posted sales of CHF 620.6 million, which included CHF 68.9 million from the businesses acquired in the years 2021/2022 (first half 2021: CHF 400.5 million).

As a result, sales were significantly higher than in the prior-year period, although preproduced deliveries, which mainly affected the Business Group Machines & Systems, in the three-digit million range had to be postponed until the second half of 2022. The reasons for the postponements were the COVID lockdown in China and supply chain bottlenecks.

EBIT, Net Result and Free Cash Flow
Rieter posted a loss of CHF -10.2 million at the EBIT level in the first half of 2022.

Earnings were impacted by significantly higher material and logistics costs. The price increases already implemented are having a delayed effect, mainly in the Business Group Machines & Systems, and were therefore unable to compensate for the high increase in costs. In addition, costs in connection with material shortages negatively impacted profitability. The result also includes acquisition-related expenses of CHF -11.2 million.

The loss at the net result level was CHF -25.2 million, of which CHF -17.6 million was due to the acquisition.

Free cash flow was CHF -57.1 million, attributable to the build-up of inventories in connection with the high order backlog and postponed deliveries.

Action Plan to Increase Sales and Profitability
Rieter is implementing a comprehensive package of measures with the aim of increasing sales and profitability in the second half of 2022.

The package focuses on two main priorities: Firstly, Rieter is continuing to systematically implement price increases while working to improve the quality of margins of the order backlog, so as to compensate for cost increases in materials and logistics.
Secondly, Rieter is working closely with key suppliers and is developing alternative solutions to eliminate material bottlenecks, as far as possible, in order to safeguard deliveries.

Rieter Site Winterthur
The Board of Directors has decided to begin the process for the sale of the remaining land at the Rieter site in Winterthur (Switzerland). In total, around 75 000 m2 of land will be sold.

Outlook
As already reported, Rieter expects demand for new systems to normalize further in the coming months. Due to the capacity utilization at spinning mills, the company anticipates that demand for consumables, wear & tear and spare parts will remain at a good level.

For the full year 2022, due to the high order backlog and the consolidation of the businesses acquired from Saurer, Rieter expects sales of around CHF 1 400 million (2021: CHF 969.2 million). The reduced sales forecast compared to early 2022 (March 2022: CHF 1 500 million) reflects the impact of global supply bottlenecks. The realization of sales revenue from the order backlog continues to be associated with risks in relation to the well-known challenges.

Despite significantly higher sales, Rieter expects EBIT and net result for 2022 to be below the previous year’s level. This is due to the considerable increases in the cost of materials and logistics, additional costs for compensation of material shortages as well expenses in connection with the acquisition in the years 2021/2022. Despite the price increases already implemented, global cost increases continue to pose a risk to the growth of profitability.

International technology group ANDRITZ will be presenting its nonwovens production solutions at CINTE 2022 in Shanghai, China – one of the main trade fairs for technical textile and nonwoven products in Asia. ANDRITZ will show its product portfolio covering state-of-the-art nonwovens and textile production technologies such as air-through bonding, airlay, needlepunch, spunlace, spunbond, wetlaid/WetlaceTM, converting, textile finishing, recycling, and natural fiber processing.

ANDRITZ supports nonwovens producers in the move to sustainability with the aim of reducing or eliminating plastic components while maintaining the high quality of the desired product properties. This applies to all types of sustainable wipes, such as flushable, biodegradable, bio-sourced, carded pulp or standard carded wipes. The latest development in this field is the ANDRITZ neXline wetlace CP line, which integrates the carded-pulp (CP) process. This is a fully engineered production line combining the benefits of drylaid and wetlaid technologies to produce a new generation of biodegradable wipes.

The neXline wetlaid aXcess targets smaller and medium production volumes and has been devised for new and existing lines. The line is easy and fast to ship due to the compact design, which also fits perfectly into containers. An operator-friendly configuration and versatile design ensure efficient production at affordable investment costs.

The aXcess range was specially developed at ANDRITZ (China) Ltd. Wuxi Branch to handle medium capacities. The facility in Wuxi has an experienced platform for production and service specially geared to serve the Asian nonwovens industry. With the aXcess range, ANDRITZ has developed a hybrid line combining European and Chinese machines, which is the ideal combination to obtain the best added value from each component in the line and be very flexible to accommodate different business cases.

• Sustainability Report 2021 combines financial and non-financial performance indicators
• 2011-2021: 60% reduction in greenhouse gas emissions per metric ton produced. 51.7% renewable source energy achieved
• ESG criteria (environmental impact (E), social values (S), organizational governance (G)) determine sustainability strategy

The new RadiciGroup Sustainability Report has been published. With the goal of continuous improvement, the 2021 report has a broader reporting boundary compared to prior years and takes into consideration all the Group companies, including sales and service companies. Over 30 sites located across Asia, North America, South America and Europe have provided their 2021 data on economic, social and environmental performance.

Not only indicators of a financial nature but also measures of environmental impact (E), social values (S) and good organizational governance (G): the latter so-called ESG criteria have become a priority for RadiciGroup, which is preparing for the new European Union non-financial reporting directive in order to contribute to the transition towards a fully sustainable economic system and increase the value of its companies.

On the environmental front, the themes of climate change and decarbonization are RadiciGroup priorities and part of a policy aimed at the uncoupling of growth and resource usage. The Group undertakes to lower emissions from production and choose limited-impact energy sources. This commitment is confirmed by the numbers: in the 2011-2021 period, total emissions per metric ton produced were reduced by 60%, while renewable source energy used by the Group reached 51.7%. Specific investments to decrease environmental impact are ongoing: in 2021, EUR 3.1 million were allocated to introduce best available techniques and improve emissions abatement and energy efficiency.

RadiciGroup promotes professional growth by valuing competence and investment in training: Group training hours once again rose after the pandemic period from 36,000 hours in 2020 to 46,000 hours in 2021. The training method was often a hybrid, taking advantage of aspects experimented with during the pandemic, that is, less traveling and use of facilities in favour of higher groupwide attendance, without the need for participation limits. Fifty-five percent of total training hours was dedicated to health and safety, which has yielded positive results based on the related indicators.

Angelo Radici, president of RadiciGroup: “Today, the United Nations 2030 Agenda for Sustainable Development is our main guideline on sustainability issues. It shows us an ambitious scenario and urges us to confront a multitude of challenges that affect our enterprise from every point of view. We try to be quick to react and tenacious, staying faithful to our roots and our style, but expanding our perspective to become increasingly more competitive and proactive in the businesses we are engaged in. From the viewpoint of achieving less environmental impact in the future, we propose to be an enabler and facilitator for our stakeholders on themes such as the circular economy, where we see ourselves as protagonists in ecodesign and recycling, as well as innovation, which we put at the service of anyone who is processing and using our products, so as to offer real sustainability solutions together.”

• Commitment for a sustainable fashion industry

RadiciGroup participated in the third edition of PHYGITAL SUSTAINABILITY EXPO, which took place on 11 and 12 July in Rome. The event was focused on the ecological transition of fashion and design brands through technological innovation.

During the “narrated fashion show”, at the archaeological site of the Museo Dei Fori Imperiali, two sustainable garments by RadiciGroup were shown: the first completely recyclable ski suit made with recycled nylon and the Yamamay swimsuit made with polyester yarn obtained from recycling of plastic bottles.

Yamamay chose the sustainable polyester yarn Repetable® by RadiciGroup, for its new green beachwear proposal, with the aim of combining beauty and sustainability. Repetable is an innovative polyester yarn obtained through a process of recycling plastic bottles. Compared to virgin polyester, Repetable allows lower CO₂ emissions (-45%), lower water consumption (-90%) and lower energy consumption (-60%), while guaranteeing high performance. The new line “Edit” by Yamamay, which includes the swimsuit made with Repetable, has already been on the market since the end of last May.

The participation of RadiciGroup in the PHYGITAL SUSTAINABILITY EXPO represents further confirmation of the Group commitment to creating a fashion industry that is increasingly respectful of the environment, thanks to the involvement of all the players in the supply chain, which are most sensitive to sustainability.

• CWS trägt mit zirkulärem Geschäftsmodell zu einer enkelfähigen Zukunft bei
• Produkte bleiben getreu dem Handlungsgrundsatz Think Circular so lange es möglich ist im Kreislauf, um Ressourcen zu schonen
• Das Unternehmensziel: 90 Prozent des Neugeschäfts bis 2025 nur noch mit nachhaltigen Produkten und 50 Prozent Reduktion der Emissionen bis 2030

Das Unternehmen kontrolliert in den Bereichen Hygiene, Matten, Berufskleidung, Brandschutz, Reinraum sowie Gesundheit und Pflege seine verwendeten Materialien und Produkte entlang des gesamten Lebenszyklus. CWS folgt dem eigenen Leitprinzip Think Circular und ist damit Teil der übergreifenden Enkelfähig-Initiative der Haniel Gruppe. Grundlage dieser Initiative ist die Überzeugung, dass Nachhaltigkeit und wirtschaftlicher Erfolg eng zusammengehören.
 
Nachhaltige Produkte sind der Hebel für eine gute Zukunft
Bei CWS wird das gesamte Produktangebot in einem mehrstufigen Prozess auf seine Nachhaltigkeit hin überprüft und dem sogenannten enkelfähig-Rating unterzogen. Neben der Lieferkette, den Rohmaterialien und Recycling-Konzepten wird dabei ebenfalls berücksichtigt, wie lange ein Produkt oder Rohstoff im Kreislauf gehalten werden kann. Die Erkenntnisse aus dem internen Scoring sind in neuen Produktlinien wie der CWS PureLine für Waschräume oder in der Berufsbekleidungskollektion Scandic Line entsprechend reflektiert und berücksichtigt. Weitere Projekte und Details zu dem Rating führt CWS in seinem Report auf.
 
„Wir wollen bis 2025 mehr als 90 Prozent unseres Neugeschäfts mit nachhaltigen Produkten realisieren. Eine lange Produktlebensdauer ist der Kern unseres Geschäftsmodells. Deshalb prüfen wir im Vorfeld, wie nachhaltig die Produkte sind, die wir in unsere Zyklen aufnehmen“, ergänzt Jürgen Höfling.
 
Effiziente Kreisläufe durch langlebige Materialien
Im Rahmen seines Servicemodells setzt CWS auf nachhaltige und langlebige Produkte und Materialien, um diese so lange wie möglich im Servicekreislauf halten zu können und so Ressourcen zu sparen. Dabei zählt Nachhaltigkeit nicht nur im Endprodukt, sondern betrifft auch die Lieferketten. Entsprechend sorgfältig wählt CWS seine Partner und Lieferanten aus, damit alle Nachhaltigkeitskriterien erfüllt werden.
 
Reduce, Reuse, Recycle – Think Circular!
Produkte werden wo möglich professionell repariert, um die Lebensspanne zu maximieren. Beispielsweise wurden im Jahr 2021 über 21.000 Matten, über 26.000 Handtuchrollenspender sowie über 5 Millionen Kleidungsstücke von CWS repariert. Das zeigt deutlich, wie viele Produkte hierdurch länger im Einsatz bleiben können.
 
Nachhaltige Materialien und Recycling-Konzepte spielen in den Kreisläufen von CWS eine tragende Rolle. Die GreenMats sind beispielsweise aus recyceltem Polyester und trocknen bis zu 25 Prozent schneller, was wiederum den Energieverbrauch senkt. Aktuell arbeitet CWS im Rahmen eines europäischen Forschungsprojekts namens Circular Sustainable Flooring (CISUFLO) mit daran, Materialien für Böden recycelbar zu machen.  
 
Dekarbonisierung ist wichtiges Zukunftsthema
Auch die Reduktion von CO2-Emissionen spielt für CWS eine große Rolle. Im diesjährigen Report stellt CWS erstmals seinen vollständigen Corporate Carbon Footprint vor und bietet damit vollständige Transparenz über Emissionen, die innerhalb des eigenen Geschäfts sowie der vorgelagerten Lieferkette entstehen (Scopes 1-3). Auf Basis dieser Erkenntnisse entwickelt CWS nun eine unternehmensweite Klimastrategie. Ziel ist es, den derzeitigen Fußabdruck um 50 Prozent bis 2030 zu reduzieren. Außerdem wird ein Klimamanagement-System erarbeitet, das die besten Maßnahmen dynamisch in die laufenden Prozesse einfließen lässt und auf aktuelle regulatorische Änderungen reagiert.

David Herberg, Vice President Engi-neering EMEA at automotive supplier Adient, has been named Rising Star 2022 in the Engineering category by Automotive News Europe magazine.

Every year since 2010, Automotive News Europe has recognized talents in the European automotive industry for their outstanding careers and special achievements in the service of their company and the industry as a whole. To be eligible, candidates must have a minimum of ten years’ experience in the industry, speak at least two languages and be aged 45 years or younger at the time of the nomination.

"The 19 people we are honoring this year are special," said Luca Ciferri, Associate Publisher & Editor of Automotive News Europe. "They’ve made it to the top from a pool of more than 130 candidates, making this year's selection process the most competitive in the history of the award."

Herberg, graduate industrial engineer and aged 45, looks back at a career spanning more than ten years at Adient, a leading supplier of seating systems for the automotive industry. After several years at the management consultancy McKinsey and various management positions at Adient as well as its predecessor Johnson Controls, Herberg has been responsible for around 1,200 employees in the development of seat structures, trim and complete seating systems since May 2020.

ROICA™, Asahi Kasei's premium stretch fiber manufacturer, strengthens its presence in the high fashion segment thanks to its established network of partners, who will present their latest innovations - activated by ROICA™ - at the upcoming edition of Milano Unica, taking place at Rho Fiera Milano from 12th to 14th July 2022.

Going more in depth in the offers of ROICA™ partners for this season of Milano Unica, they are:

• Cifra, which presents its innovative garments for men and women, combining fashion and function. Base layers, tops, leggings and jumpsuits are made with natural yarns, or recycled pre- and post-consumer yarns in combination with ROICA™ EF, the sustainable recycled stretch yarn able to complete proposals that offer design, performance and responsibility. The design of the garments, created in Cifra's design office, offers a perfect shape with body mapping technology that creates dedicated ventilation zones, for a feeling of comfort and freshness as well as an innovative aesthetic impact.
• Iluna Group, whose journey into the new dimension of responsibility continues with developments in GRS (Global Recycled Standard) certified recycled yarns aimed at unprecedented effects in looks, performance and hands. Brand new for this edition of Première Vision is the inclusion of GOTS-certified organic cotton in GRS-certified galloons and allover lace containing ROICA™ EF, so as to meet market demands for natural comfort in the underwear sphere.
• Maglificio Ripa, which presents the Splash collection for summer 2024, developed in two major themes, united by the same focus on sustainability that results in the use of recycled pre- and post-consumer polyamide and polyester yarns including ROICA™ EF for the sustainable recycled stretch fiber. The first theme encompasses printed, 3D jacquard fabrics, ennobled by innovative processes that move the bottoms for an organic and sometimes irreverent final look. The second theme embodies a cocoon spirit, enveloping like a caress, soft as a hug.
• Penn Textile Solutions/Penn Italia, whose highlights of the new collection are on one side fabrics developed with the use of Neride eco yarns by Nurel with ROICA™ V550, characterized by restraining lace effect, soft touch and breathable, in combination with tulle as a sustainable basic, and on the other side charmeuses with soft hand, raw cut in combination with a band fabric from the dreamshape family with reinforced gripping edge, made again in Neride eco yarns by Nurel with ROICA™ V550
• Piave Maitex, whose orientation is, as always, to present new products with the right  balance between technological innovation and aesthetic look, between fashion and comfort, proposals that include sustainable fabrics made in recycled polyester,  polyamide and the sustainable recycled stretch fiber ROICA™ EF, three-dimensional and optical, perforated, plush effects, made by prioritizing technical functionalities such as waterproofness, breathability, transfer and moisture management, opacity and anti-UV as well as anti-abrasion.
• Sitip, which is one of the premium partners, together with ROICA™, for the creation of the first Scott Racing Team’s responsible biking uniform. This year, the evolution of research and development has also led to the creation of new responsible shorts, made with NATIVE-THUNDERBIKE POWER fabric by Sitip in recycled polyamide and ROICA™ EF yarn by Asahi Kasei. A fabric designed for high-performance sports, particularly suitable for making cycling pants for its maximum coverage and UV protection - thanks to ECLIPSE Sun Protection technology - breathability, comfort and fit. Also the shirt has been produced with Sitip recycled fabrics - NATIVE-BICIMANIA and NATIVE-PIRATA - made with Asahi Kasei's ROICA™ EF sustainable, stretch and certified recycled yarns.