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20.01.2023

Autoneum: Revenue growth in 2022

For the first time in two years, global automotive production recorded a significant increase in full-year 2022 with 82.0 million vehicles produced (2021: 77.2 million vehicles) and growth of 6.2%, driven by the regions Asia and North America, but remained below 2019 levels.
Autoneum's revenue in local currencies increased significantly by 8.5%, largely due to inflation-related compensation. In the regions Europe and Asia, Autoneum's production volumes developed below market. Compared to the July 2022 estimate, revenue was around CHF 90 million lower than assumed due to volume factors. The strong fluctuations in production volumes due to vehicle manufacturer supply chain issues continued in 2022 and were exacerbated by the war in Ukraine in Europe and by COVID-related lockdowns in Autoneum's Asian main market China. Consolidated revenue in Swiss francs increased by 6.1% year-on-year to CHF 1 804.5 million (2021: CHF 1 700.4 million) due to the strong Swiss franc.

For the first time in two years, global automotive production recorded a significant increase in full-year 2022 with 82.0 million vehicles produced (2021: 77.2 million vehicles) and growth of 6.2%, driven by the regions Asia and North America, but remained below 2019 levels.
Autoneum's revenue in local currencies increased significantly by 8.5%, largely due to inflation-related compensation. In the regions Europe and Asia, Autoneum's production volumes developed below market. Compared to the July 2022 estimate, revenue was around CHF 90 million lower than assumed due to volume factors. The strong fluctuations in production volumes due to vehicle manufacturer supply chain issues continued in 2022 and were exacerbated by the war in Ukraine in Europe and by COVID-related lockdowns in Autoneum's Asian main market China. Consolidated revenue in Swiss francs increased by 6.1% year-on-year to CHF 1 804.5 million (2021: CHF 1 700.4 million) due to the strong Swiss franc.

Revenue development in the regions
In local currencies, revenue of Business Group Europe increased by 2.7%, while production volumes of vehicle manufacturers decreased by 1.3%. The growth in revenue resulted from inflation compensation, while Autoneum's production volumes were significantly lower compared to the previous year. Business Group North America increased its revenue in local currencies by 11.0%. The number of vehicles produced increased by 9.7% year-on-year. Volume development at Autoneum’s North American plants clearly improved compared with 2021 due to the allocation of semiconductors to the vehicle models supplied by Autoneum. Revenue of Business Group Asia declined by 2.7% in local currencies, and thus was significantly below the market (+7.7%). Autoneum's production facilities in its main market China are located in regions that were hit particularly hard by the COVID-related lockdowns. Growth in China was also driven by Chinese vehicle manufacturers, with whom Autoneum generated only little revenue last year.
Business Group SAMEA (South America, Middle East and Africa) achieved hyperinflation-adjusted revenue growth in local currencies of 65.2% year-on-year. This increase was mainly due to inflation compensation and in terms of volume slightly outperformed the market, which grew by 7.5%.

Due to significantly lower production volumes in Autoneum's regions Europe and Asia of around CHF 90 million compared to the half-year estimate and further increases in energy costs in the second half of the year, Autoneum expects the full-year 2022 result to be at the lower end of the guidance published on June 15, 2022.

The full year-end financial statements and the Annual Report 2022 will be presented at the Media Conference on March 1, 2023.

Source:

Autoneum Management AG

20.10.2022

adidas reports preliminary Q3 results and reduces its full year guidance

adidas announces preliminary results for the third quarter and adjusted its full year 2022 guidance. The company’s new outlook takes into account a further deterioration of traffic trends in Greater China as well as a significant inventory build-up as a result of lower consumer demand in major Western markets since the beginning of September, which is expected to lead to higher promotional activity during the remainder of the year. The new outlook also reflects several one-off costs impacting the company’s bottom-line results in both the third and fourth quarter of the year.

adidas announces preliminary results for the third quarter and adjusted its full year 2022 guidance. The company’s new outlook takes into account a further deterioration of traffic trends in Greater China as well as a significant inventory build-up as a result of lower consumer demand in major Western markets since the beginning of September, which is expected to lead to higher promotional activity during the remainder of the year. The new outlook also reflects several one-off costs impacting the company’s bottom-line results in both the third and fourth quarter of the year.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the third quarter. Currency-neutral sales in Greater China declined at a strong double-digit rate reflecting the continued widespread covid-19-related restrictions as well as significant inventory takebacks. Excluding Greater China, currency-neutral revenues in the company’s other markets combined continued to grow at a double-digit rate during the quarter. In euro terms, the company’s sales increased 11% to € 6.408 billion in Q3. The gross margin declined 1.0 percentage points to a level of 49.1% and operating margin reached 8.8% during the third quarter (2021: 11.7%). Net income from continuing operations was € 179 million in Q3 (2021: € 479 million). The bottom-line development during the quarter reflects several one-off costs totaling almost € 300 million on the net income level. The majority of these expenses reflect the company’s decision to initiate the wind-down of its business operations in Russia. In addition, non-recurring costs related to accelerated cash pooling in high inflationary countries, a recently settled legal dispute as well as higher provisions for customs-related risks also had an adverse effect on the company’s gross profit, operating overheads as well as financial and tax expenses in the quarter.

As a result of the deteriorating traffic trend in Greater China, higher clearance activity to reduce elevated inventory levels (up 63% on a currency-neutral basis at the end of Q3) as well as total one-off costs of around € 500 million on the net income level in 2022, the company reduced its full year guidance. adidas now expects currency-neutral revenues for the total company to grow at a mid-single-digit rate in 2022 (previously: mid- to high-single-digit rate), reflecting double-digit revenue growth during the fourth quarter. This growth will be driven by adidas’ strong product pipeline, support from the FIFA World Cup 2022 as well as easier prior year comparables. The company’s gross margin is now expected to be around 47.5% in 2022 (previously: around 49.0%). Consequently, the company’s operating margin is now forecasted to be around 4.0% in 2022 (previously: around 7.0%). Net income from continuing operations is expected to reach a level of around € 500 million (previously: around € 1.3 billion).

In 2023, the company expects the non-recurrence of the one-off costs of around € 500 million occurred in 2022 to have a positive impact on the net income development in the same order of magnitude. In addition, in light of the challenging market environment adidas established a business improvement program to safeguard the company’s profitability in 2023. As part of this program the company has launched several initiatives aimed at mitigating the significant cost increases resulting from the inflationary pressure across the company’s value chain as well as unfavorable currency movements. In total, the program, which will result in one-off costs of around € 50 million in the fourth quarter of 2022, is expected to compensate cost headwinds of up to € 500 million in 2023. In addition, it is expected to deliver a positive profit contribution of around € 200 million next year.

More information:
adidas guidance Covid-19
Source:

adidas AG

(c) deepak@deepakdavda.com
06.09.2022

Techtextil India to take place in September 2023

Messe Frankfurt India has announced that the ninth edition of Techtextil India will be held from 12 – 14 September 2023, for the first time at JIO World Convention Centre (JWCC), Mumbai. On the side-lines of the three-day fair, the organisers are planning a series of live sessions to spark debates on important industry topics and high-growth application areas.
 
As the leading business event for the Indian technical textile industry, Techtextil India, aims to connect international and domestic players with buyers from 12+ segments under diverse application areas and create a one-stop sourcing platform to highlight latest product innovations in technical textiles.
 

Messe Frankfurt India has announced that the ninth edition of Techtextil India will be held from 12 – 14 September 2023, for the first time at JIO World Convention Centre (JWCC), Mumbai. On the side-lines of the three-day fair, the organisers are planning a series of live sessions to spark debates on important industry topics and high-growth application areas.
 
As the leading business event for the Indian technical textile industry, Techtextil India, aims to connect international and domestic players with buyers from 12+ segments under diverse application areas and create a one-stop sourcing platform to highlight latest product innovations in technical textiles.
 
Marking a spectacular comeback after the lockdown, the eighth edition of Techtextil India in  2021 stood out to be a ground-breaking business platform for the technical textile sector with live demonstrations from over 150 companies’ brands and an exclusive German pavilion. The high-profile event, over the course of three days attracted 4,087 trade visitors from 25 states and 194 cities. Mr Pramod Khosla, Director, Khosla Profil Pvt Ltd, shared: “Despite the unprecedented situation created by pandemic, Techtextil India 2021 saw a tremendous response from visitors. This goes to show the immense interest and trust that industries and people have in the technical textiles sector as well as in Techtextil India.”
 
For the upcoming ninth edition, leading Indian players such as Alok Masterbatches, Khosla Profil, Park Nonwoven, Sarex Chemicals, Suntech Geo, Weavetech have already confirmed their participation and will be showcasing innovations in high-growth application areas of Geotech, Packtech, Agrotech & Indutech with a focus on products such as specialty fibres, filtration fabrics, functional textiles & advance technology.
 
While Mobiltech, Indutech, Meditech, Packtech and Sportech constitute a major share value in the global market for technical textiles, the segments likely to grow at the fastest rates (at rates faster than a CAGR of 10%) in the Indian market are Oekotech, Protech, Mobiltech, Geotech, Indutech, Agrotech, Buildtech and Packtech. The government’s target to accelerate technical textile sector growth from 8% to 15-20% range in the next five years and transform the nation into a major player in innovations, technology development, applications in key areas (agriculture, roads and railways, water resources, hygiene and healthcare, personal protection) is giving strong impetus to industry players.

With an aim to place India as one of the leaders in the global technical textile market and enhance its adoption and penetration domestically, the Indian government has earmarked INR 1000 crore (USD 130.7 million) dedicated only for R&D of the Technical Textiles sector, while the Union Budget 2022-23 further allocates INR 100 crore (USD 13.07 million) for the National Technical Textiles Mission. The centre is making strong efforts to encourage the use and adoption of technical textiles and has mandated the use of 92 items by government organisations covering agriculture, horticulture, highways, railways, water resources, and medical applications. The organisers are in talks with international technology players targeting these application areas to present their innovations at the three-day fair.

Source:

Messe Frankfurt (HK) Limited

09.08.2022

NCTO: North Carolina Textile Executives highlight Importance of Industry

North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC), at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.

North Carolina textile executives spanning the fiber, yarn, fabric, and finished product textile industries participated in a roundtable discussion with Rep. Kathy Manning (D-NC), at which they discussed the innovative achievements and competitiveness of the domestic industry and outlined priority issues in Washington that impact their daily operations.

The roundtable discussion, hosted by Unifi Inc. and sponsored by the National Council of Textile Organizations (NCTO), was held at Unifi’s headquarters in Greensboro, North Carolina.

North Carolina is the second largest state employer of textile-related jobs, employing more than 30,000 jobs in 2021, according to U.S. government data. The state’s $2.7 billion in textile-related exports leads the nation, according to U.S. government data.

Congresswoman Manning’s visit comes at a pivotal time for the U.S. textile supply chain, which produced $65.2 billion in output in 2021 and employed nearly 535,000 workers. The industry has been at the forefront of domestic manufacturing of over 1 billion personal protective equipment (PPE) items during the COVID-19 pandemic.

During the roundtable, North Carolina executives showcased the industry’s important contribution to the state and the U.S. economy as well as its advanced sustainability initiatives, while outlining critical policies, such as the importance of Buy American and Berry Amendment government procurement policies, maintaining strong rules of origins in free trade agreements, supporting a domestic PPE production sector, and the need to address larger systemic trade issues with China.

“In North Carolina, the textile industry is woven into the very fabric of our state and economy, with more than 33,000 workers employed in over 600 textile manufacturing facilities across the state. In Congress, I am committed to supporting our homegrown industry by making PPE in America, protecting the yarn forward rule of origin in our trade agreements, and cracking down on China’s unfair trade practices. I am thrilled to engage with industry leaders in my district, as we discuss ways to grow the U.S. textile industry and the critical role that textile manufacturers play in our local, state, and national economy,” said Congresswoman Kathy Manning.

26.07.2022

adidas adjusts outlook for 2022: Declining revenues in Greater China expected

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

adidas is adjusting its outlook for the financial year 2022. While second quarter results were somewhat ahead of expectations reflecting continued strong momentum in Western markets and a return to growth in Asia-Pacific, the company has been experiencing a slower-than-expected recovery in its business in Greater China since the start of the third quarter. Previously, the company had assumed that in absence of any major lockdowns as of Q3, currency-neutral revenues in the region would be flat during the second half of the year versus the prior year level. However, given the continued widespread covid-19-related restrictions, adidas now expects revenues in Greater China to decline at a double-digit rate during the remainder of the year.

As a result, adidas now expects currency-neutral revenues for the total company to grow at a mid- to high-single-digit rate in 2022 (previously: at the lower end of the 11% – 13% range). Because of the less favorable market mix due to lower-than-expected revenues in Greater China as well as the impact from initiatives to clear excess inventories in this market until the end of the year, the company’s gross margin is now expected to be around 49.0% in 2022 (previously: around 50.7%). Consequently, the company’s operating margin is now forecasted to be around 7.0% in 2022 (previously: around 9.4%) and net income from continuing operations is expected to reach a level of around € 1.3 billion (previously: at the lower end of the € 1.8 billion – € 1.9 billion range).

So far, the company did not experience a meaningful slowdown in the sell-through of its products or significant cancellations of wholesale orders in any other market. Nevertheless, the adjusted guidance also accounts for a potential slowdown of consumer spending in these markets during the second half of the year as a result of the more challenging macroeconomic conditions.

Despite these headwinds, adidas continues to expect double-digit revenue growth during the second half of the year for the total company. In addition to easier prior year comparables, the acceleration will be driven by adidas’ strong product pipeline, the restocking opportunity with its wholesale customers given unconstrained supply as well as the support from major sporting events.

Based on preliminary numbers, adidas’ currency-neutral revenues grew 4% during the second quarter. This increase was driven by strong double-digit growth in North America and Latin America, high-single-digit growth in EMEA (also double-digit growth excluding negative Russia/CIS impact) as well as a return to growth in Asia-Pacific. In euro terms, sales increased 10% to € 5.596 billion. The company’s gross margin declined 1.5 percentage points to a level of 50.3% and operating margin reached 7.0% during the second quarter (2021: 10.7%). Net income from continuing operations was € 360 million in Q2 (2021: € 387 million) supported by a one-time tax benefit of more than € 100 million due to the reversal of a prior year provision.

More information:
adidas financial year 2022
Source:

adidas AG

19.07.2022

Rieter starts sales process for the remaining land owned by Rieter

  • 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.

  • 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.

Source:

Rieter Holding AG

14.06.2022

AkzoNobel updates Q2 outlook based on impact of China lockdowns

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

AkzoNobel has updated its Q2 outlook based on the impact of the evolving business environment, including the effect of China lockdowns and the slower start to the EMEA DIY season.

Overall demand signs for paints and coatings remain robust, with North America still constrained in raw material availability and logistics, but sequentially improving. In Europe in particular, macro-economic uncertainty related to consumer confidence has increased.

Consumer demand in the Deco DIY channels in Europe – which represent 40% of total Deco EMEA revenue – got off to a slow start in Q2, subsequently impacted by inventory reductions in the DIY channel. In June, Deco DIY channel demand improved back to 2019 levels. Despite share gains and our Deco Professional business performing as anticipated, the total Q2 operating income for our Decorative Paints segment is expected to be down by approximately €50 million versus expectations entering the second quarter.

COVID-19 lockdowns in China during Q2 impact both paints and coatings. This impact was mainly on our coatings business, while paints was able to almost offset by progressing with its geographical expansion initiatives. The re-opening in June is showing a positive rebound, but not enough to catch up on all the missed revenue in the quarter, resulting in a negative operating income impact of approximately €40 million for the quarter, versus expectations entering Q2.

AkzoNobel continues to focus on achieving its €2 billion adjusted EBITDA target for 2023, despite the volatile market environment having a material impact on the company’s Q2 2022 financials.

More information:
AkzoNobel Coatings Covid-19
Source:

AkzoNobel

26.05.2022

Rieter anticipates losses in the first half of 2022

  • Exceptionally high order backlog and sustained strong demand
  • Supply chain bottlenecks, COVID lockdown in China and significant cost increases
  • Takeover of winding machine business leads to additional costs
  • Sales and earnings adversely impacted in first half-year
  • Considerably improved market position

Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.

Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.

These factors are adversely impacting both sales and earnings.

  • Exceptionally high order backlog and sustained strong demand
  • Supply chain bottlenecks, COVID lockdown in China and significant cost increases
  • Takeover of winding machine business leads to additional costs
  • Sales and earnings adversely impacted in first half-year
  • Considerably improved market position

Despite an exceptionally high order backlog and sustained strong demand, Rieter’s business situation in the first half of 2022 is characterized by the well-known supply chain bottlenecks, the repercussions of the COVID lockdown in China and the significant increases in material and transportation costs.

Further costs are added in connection with the takeover of the automatic winding business as of April 1, 2022.

These factors are adversely impacting both sales and earnings.

Rieter expects significantly higher sales in the first half of 2022 compared to the prior-year period (first half of 2021: CHF 400.5 million). Rieter anticipates a loss at the EBIT and net result level in the first half of 2022 (first half of 2021: EBIT CHF 9.0 million, net result: CHF 5.3 million).
The company is working intensively on the implementation of measures to minimize the impact of the supply chain bottlenecks, the COVID lockdown in China and the cost increases. The implemented price increases have a delayed effect, particularly in the machinery business. The integration of the automatic winding business is proceeding according to plan.

As soon as the situation in the sourcing markets has normalized, Rieter expects to benefit from the exceptionally high order backlog and the considerably improved market position as a result of the takeover of the automatic winding business as well as Accotex and Temco.
Rieter will provide a detailed report on the business results of the first half of 2022 in July 2022.

Source:

Rieter Management AG

(c) Euratex
17.05.2022

EURATEX 2022 Spring Report: Exports of textile and clothing articles +10.6%

EURATEX has just released its Spring report, offering a detailed insight into trade figures for the European textile and apparel industry in 2021. The numbers are encouraging: comparing with the dramatic corona-year 2020, EU exports of textile and clothing articles increased by +10.6%, while imports dipped by -7.5%. As a result, the EU trade deficit improved, even it remains significant (- €48 billion).

Furthermore, import prices went slightly down in clothing and dropped in textiles, following a strong decrease of Chinese import prices of face masks and protective medical supplies.

The boost in exports was mainly due to strong performance on the Swiss, Chinese and US markets. On the other side, EU sales of textile & clothing to the United Kingdom fell sharply (-23%), due to Brexit new requirements, customs’ delays and shortage of truck drivers.  Imports from the EU top supplier, China, plunged by -28%, corresponding to €13 billion. Similarly, textile and clothing imports from the United Kingdom recorded a sharp decrease over the period (-48%, equal to €-3 billion).

EURATEX has just released its Spring report, offering a detailed insight into trade figures for the European textile and apparel industry in 2021. The numbers are encouraging: comparing with the dramatic corona-year 2020, EU exports of textile and clothing articles increased by +10.6%, while imports dipped by -7.5%. As a result, the EU trade deficit improved, even it remains significant (- €48 billion).

Furthermore, import prices went slightly down in clothing and dropped in textiles, following a strong decrease of Chinese import prices of face masks and protective medical supplies.

The boost in exports was mainly due to strong performance on the Swiss, Chinese and US markets. On the other side, EU sales of textile & clothing to the United Kingdom fell sharply (-23%), due to Brexit new requirements, customs’ delays and shortage of truck drivers.  Imports from the EU top supplier, China, plunged by -28%, corresponding to €13 billion. Similarly, textile and clothing imports from the United Kingdom recorded a sharp decrease over the period (-48%, equal to €-3 billion).

Director General Dirk Vantyghem commented: “the 2021 export figures, presented in this Spring report, confirm that EURATEX members have gained momentum; even if energy prices are causing some serious short-term disruptions, our long-term ambition remains to be a world leader on sustainable textiles.”

The international trade dimension is indeed critical for the competitiveness of the European textile ecosystem, and needs to be fully embedded in the EU’s Strategy for Sustainable and Circular Textiles. The Commission insists that “all textile products placed on the EU market, are durable, free of hazardous substances, produced respecting social standards…” This is an essential condition to create a level playing field between all textile and apparel companies, regardless of their production base. With €100 billion of imports, and over 20 billion of “foreign” textile items put on the Single Market, this requires a dramatic upscaling of market surveillance, without however disrupting fluid supply chains.

Looking at the impact of war in Ukraine, EURATEX has strongly condemned the Russian aggression, and offered support to the Ukrainian textile industry. Ukraine offers valuable sourcing opportunities for European textile and apparel brands, as part of a broader nearshoring trend, which seems to emerge from the trade figures.

More information:
Euratex export
Source:

Euratex

(c) ACIMIT
09.05.2022

Italian Textile Machinery (ACIMIT): Drop in orders for first quarter 2022

The orders index for textile machinery for the first quarter of 2022, processed by ACIMIT, the Association of Italian Textile Machinery Manufacturers, shows a slight decrease (-4%) compared to the same period from January to March 2021. In absolute value, the index stood at 117 points (basis: 2015 = 100).

On the domestic front orders shrank by fully 22%, whereas abroad the decline was more contained (-2%). The absolute value of the index in Italy was set at 136 points. On foreign markets, the index scored a value of 114.9 points.

ACIMIT President Alessandro Zucchi commented that: “The global pandemic and Russian-Ukrainian conflict have accentuated the climate of uncertainty for the whole of the textile industry. Criticalities already present in the past year (such as a sharp rise in prices of raw materials and their scarce availability, as well as increased transport costs) are now accentuated more than ever. While orders appear to have settled on foreign markets, domestically, following a strong recovery in 2021, we now have to deal with a general negativity permeating the Italian economy.”

The orders index for textile machinery for the first quarter of 2022, processed by ACIMIT, the Association of Italian Textile Machinery Manufacturers, shows a slight decrease (-4%) compared to the same period from January to March 2021. In absolute value, the index stood at 117 points (basis: 2015 = 100).

On the domestic front orders shrank by fully 22%, whereas abroad the decline was more contained (-2%). The absolute value of the index in Italy was set at 136 points. On foreign markets, the index scored a value of 114.9 points.

ACIMIT President Alessandro Zucchi commented that: “The global pandemic and Russian-Ukrainian conflict have accentuated the climate of uncertainty for the whole of the textile industry. Criticalities already present in the past year (such as a sharp rise in prices of raw materials and their scarce availability, as well as increased transport costs) are now accentuated more than ever. While orders appear to have settled on foreign markets, domestically, following a strong recovery in 2021, we now have to deal with a general negativity permeating the Italian economy.”

The ongoing conflict in Ukraine, together with successive pandemic lockdowns in the main market for textile machinery manufacturers, namely China, have undermined the confidence of Italian companies in the sector. “I believe 2022 will be a transition year for the industry, as we await a calming international economic scenario. In the meantime,” adds Zucchi, “our association continues to work to strengthen the positioning of Italy’s textile machinery industry worldwide through promotional initiatives in collaboration with Ministry of Foreign Affairs and International Cooperation and Italian Trade Agency.”

The latest of these initiatives was carried out at the end of April, with the opening of an Italian technology training center for textile machinery in Mongolia, a Country that ranks among the world’s leading producers of raw cashmere. ACIMIT’s president concludes that, “With the training center starting its operations, our sector is laying the foundations for further business opportunities in an emerging market. I’m certain the initiative will bear a return in terms of image not only for individual Italian companies who are participating by supplying machinery, but on the entire Italian textile machinery sector as a whole.”

06.05.2022

adidas grows double-digit in Western markets in Q1 2022

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate.

  • Currency-neutral sales down 3% as supply constraints reduce top-line by € 400 million
  • Western markets continue to show strong momentum with combined currency-neutral sales growing 13% across North America (+13%), EMEA (+9%) and Latin America (+38%)  
  • Gross margin down 1.9pp to 49.9% driven by significantly higher supply chain costs
  • Operating margin of 8.2% reflecting additional investments into brand, DTC, and digital
  • Net income from continuing operations reaches € 310 million
  • FY 2022 outlook for revenue and net income confirmed at the lower end due to the impact from covid-19-related lockdowns in Greater China

“In the first quarter, consumer demand for our brand and products was strong in all Western markets. Our combined sales in North America, EMEA and Latin America grew at a double-digit rate. Backed by an exceptionally strong wholesale order book and relentless focus on driving growth in our own DTC channels, we expect this positive development to continue for the rest of the year,” said adidas CEO Kasper Rorsted. “In the East, we will return to growth in Asia-Pacific in the second quarter, while we expect the challenging market environment in Greater China to continue. With strong double-digit growth in the vast majority of our markets, representing more than 80% of our business, we are well positioned for success in 2022. “

For the full press release, see attached document.

Source:

adidas AG

Photo: SGL Carbon
05.05.2022

SGL Carbon: Dynamic business development in Q1 2022 continued

  • Low impact of Ukraine war on business performance in 1st quarter
  • 12.2% increase in sales to €270.9 million based on growth in all four business units
  • Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

  • Low impact of Ukraine war on business performance in 1st quarter
  • 12.2% increase in sales to €270.9 million based on growth in all four business units
  • Adjusted EBITDA improves by 11.5% to €36.8 million

SGL Carbon generated consolidated sales of €270.9 million in Q1 2022 (Q1 2021: €241.5 million). This corresponds to an increase of €29.4 million or 12.2% compared to the same period of the prior year. All four business units contributed to the pleasing increase in sales. In parallel, adjusted EBITDA improved by 11.5% to €36.8 million in the reporting period.

Sales development
In the first three months of fiscal 2022, the sales increase of €29.4 million was driven by all four operating business units: Graphite Solutions (+€11.3 million), Carbon Fibers (+€6.6 million), Composite Solutions (+€7.2 million) and Process Technology (+€6.0 million).
In particular, sales to customers in the automotive and semiconductor industries and a significant recovery in the industrial applications segment were key factors in the increase in sales. Sales of the Process Technology business unit to customers in the chemical industry also developed pleasingly. The effects of the war in Ukraine, which has been ongoing since the end of February 2022, had only a little impact on SGL Carbon's sales performance in the 1st quarter.

Earnings development
Despite the increasingly difficult market environment in the course of Q1 2022, associated with temporary supply and production bottlenecks at their customers, temporarily interrupted transport routes, and significantly higher energy prices, SGL Carbon was able to keep the adjusted EBITDA margin almost stable year-on-year at 13.6%.  
Adjusted EBITDA increased by 11.5% to €36.8 million in the reporting period. Higher capacity utilization in the business units and product mix effects contributed to the improvement in earnings, together with the cost savings achieved as a result of the transformation. By contrast, higher raw material, energy and logistics costs as of end of February 2022 had a negative impact on earnings. The Carbon Fibers business unit was particularly affected by the energy price increases. One-time expenses of €9.2 million in conjunction with energy transactions burdened the Carbon Fibers business unit in the 1st quarter of 2022.  
To secure our production and delivery capabilities, around 85% of the energy requirements of the entire SGL Carbon for 2022 are price-hedged.
Adjusted EBITDA and EBIT do not include in total positive one-time effects and special items of €8.5 million, among other things from the termination of a heritable building right to a site no longer in use. Taking into account the one-time effects and special items presented as well as depreciation and amortization of €14.1 million, reported EBIT increased by 83.5% to €31.2 million (Q1 2021: €17.0 million). The net profit for the period developed correspondingly and more than tripled from €6.1 million to €21.4 million in a quarter-on-quarter comparison.

Outlook
The sales and earnings figures for the 1st quarter 2022 confirm the stable demand from different market segments. Price increases and volatility in the availability of raw materials, transportation services and energy were largely offset by savings from the transformation program and pricing initiatives at the customers.
For 2022, SGL Carbon continues to expect volatile raw material and energy prices, which were included in their forecast for 2022 at the time of planning. However, there are uncertainties about the extent and duration to which SGL Carbon and the customers will be affected by the impact of the war in Ukraine or temporary supply chain disruptions due to the lockdowns in China. Therefore, SGL Carbon's outlook for fiscal 2022 does not include supply and/or production interruptions at customers or the impact of a possible energy embargo that cannot be estimated at this time.  
SGL Carbon's forecast also implies that factor cost increases can be at least partially passed on to the customers through pricing initiatives. SGL Carbon has also included the revenue and earnings impact from the expiry of a supply contract with a major automobile manufacturer at the end of June 2022 in our forecast.

Source:

SGL Carbon

29.03.2022

Esprit Announces Annual Results for FY2021

  • Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
  • Recording a Turnaround to HK$381 Million
  • Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

  • Revenue Increases to HK$8,316 Million with Net Profit After Tax Surging Significantly
  • Recording a Turnaround to HK$381 Million
  • Re-Establishes ESPRIT’s Market Leadership

ESPRIT HOLDINGS LIMITED has announced its audited financial annual results for the year ended 31 December 2021, highlighted by a significant increase in both revenue and profit attributable to shareholders of the Company to HK$8,316 million and HK$381 million respectively, in which the profit attributable to shareholders of the Company also recorded a turnaround versus the loss attributable to shareholders of the Company of HK$414 million for the six months ended 31 December 2020. Gross profit margin was 48.6%, 7.0% higher than the Corresponding Period. Please refer to the Company’s results announcement for the Current Year for further details.

Such financial improvement was attributable to various reasons, including (i) the new infrastructure and strategies instituted by the current management team; (ii) improvement in sales with higher gross profit margin; (iii) positive results of efficient cost control measures; (iv) improved inventory management; and (v) growth in E-commerce.

Although revenue in the Current Year was affected by lockdowns in the Company’s major European markets during the first quarter of 2021, and due to increased restrictions on entry requirements into stores during the fourth quarter of 2021, the Group generated revenue via three main channels: E-commerce, wholesale, and owned retail stores. As the ESPRIT brand website and third-party E-commerce partners continued to trade during lockdown, a large portion of the Group’s sales were generated online. This business model allowed it to mitigate some of the negative impacts of the Pandemic in the retail segment. Another driver of growth came from selling fewer discounted products from the Company’s retail business compared to 2020.

The Group has not forgotten the ESPRIT mission and long-standing commitment to sustainability. The Company has continued to work tirelessly towards developing cutting-edge materials that set new standards in terms of environmental sustainability. The Company has formulated and further advanced its ESG strategies to establish ESPRIT as an industry pioneer. Such strategies involve the greater use of sustainable fibers, developing new and innovative product options that support a circular economy, and ensuring environmental awareness is a key message that underpins all of the Group’s projects. To achieve these objectives, the Management has identified four key pillars of growth (Sourcing and Procurement; Marketing and Product; IT, Internet, and E-commerce; and The ESPRIT Brand Story) that are paramount in maintaining the loyalty of existing ESPRIT patrons and attracting new customers.

Looking ahead, the global economy is anticipated to be negatively affected by the lingering effects of the coronavirus pandemic and the conflict in Ukraine. The already unstable logistics industry and disrupted supply chain will likely be further impacted, which in turn will result in higher logistic service costs. Despite the unfavorable global economic outlook, the Group believes that under the leadership of its current management and with the support of dedicated staff members, the Company is on track to ongoing profit growth.

Source:

FleishmanHillard

29.12.2021

MUNICH FABRIC START from 25 - 27 January 2022 is cancelled

  • BLUEZONE & KEYHOUSE move forward to 3 - 4 May 2022

The team of the Munich Fabric Start Exhibitions GmbH has dedicated the last weeks to the finalisation of the upcoming BLUEZONE and MUNICH FABRIC START: the new measures for safe events have been implemented; the organisers are ready to welcome the industry In Munich in just a few weeks.

And the current status is impressive: more than 600 suppliers from 33 countries are registered for
MUNICH FABRIC START from which some 90 international denim mills are ready to show at BLUEZONE. In such extraordinary times, the enormous support from the industry is a milestone and anything but a matter of course.

At the same time, the ongoing dynamic situation, the ever-increasing demands on events and the enormous
planning uncertainty make the next necessary steps more difficult. With the rapidly increasing infection
rates of the Omicron variant across Europe and especially in some neighbouring countries that are
already in a new lockdown, the organisers do face very complex challenges in many respects.

  • BLUEZONE & KEYHOUSE move forward to 3 - 4 May 2022

The team of the Munich Fabric Start Exhibitions GmbH has dedicated the last weeks to the finalisation of the upcoming BLUEZONE and MUNICH FABRIC START: the new measures for safe events have been implemented; the organisers are ready to welcome the industry In Munich in just a few weeks.

And the current status is impressive: more than 600 suppliers from 33 countries are registered for
MUNICH FABRIC START from which some 90 international denim mills are ready to show at BLUEZONE. In such extraordinary times, the enormous support from the industry is a milestone and anything but a matter of course.

At the same time, the ongoing dynamic situation, the ever-increasing demands on events and the enormous
planning uncertainty make the next necessary steps more difficult. With the rapidly increasing infection
rates of the Omicron variant across Europe and especially in some neighbouring countries that are
already in a new lockdown, the organisers do face very complex challenges in many respects.

After the extensive consideration of the overall situation with an extremely serious situation
in many places, the organisers feel obliged to cancel MUNICH FABRIC START Spring.Summer 23
from 25 - 27 January 2022.

With regards to BLUEZONE and KEYHOUSE, an alternative scenario will be realised:
both formats will skip the January show and move forward to 3 – 4 May 2022 as a dedicated
denim and innovation show on the Zenith grounds in Munich.

The decisive factors for this major decision are various realistic scenarios which need to be considered to occur within the coming weeks: a new lockdown in Germany with a possible event ban imposed at very short notice, further restrictions on events and additional travel restrictions.

Source:

munich fabric start

22.12.2021

PREMIUM GROUP Events will not take place in January 2022

Due to the pandemic developments and the decision taken by the Federal Government & the Federal States at yesterday's Conference of Minister Presidents, major events and thus also the fashion fairs and events of PREMIUM, SEEK, FASHIONTECH conference, as well as the preview of the new fashion festival THE GROUND will not be able to take place as planned in Frankfurt am Main in January 2022.

Besides the lack of a regulatory basis, the effects of the ongoing pandemic and the spread of the coronavirus, as well as the worrying developments regarding the new virus variant, Omicron, have further overruled the safe implementation of the events in January. Lockdowns in neighbouring European countries, some of which have already come into force, in addition to travel restrictions, quarantine regulations and the volatile situation as a whole make it impossible to hold the trade fairs and peripheral events in a safe environment.

Due to the pandemic developments and the decision taken by the Federal Government & the Federal States at yesterday's Conference of Minister Presidents, major events and thus also the fashion fairs and events of PREMIUM, SEEK, FASHIONTECH conference, as well as the preview of the new fashion festival THE GROUND will not be able to take place as planned in Frankfurt am Main in January 2022.

Besides the lack of a regulatory basis, the effects of the ongoing pandemic and the spread of the coronavirus, as well as the worrying developments regarding the new virus variant, Omicron, have further overruled the safe implementation of the events in January. Lockdowns in neighbouring European countries, some of which have already come into force, in addition to travel restrictions, quarantine regulations and the volatile situation as a whole make it impossible to hold the trade fairs and peripheral events in a safe environment.

More information:
Premium Group PREMIUM GROUP
Source:

PREMIUM Exhibitions GmbH

(c) Messe Frankfurt, deepak@deepakdavda.com
13.12.2021

Techtextil India: First post-lockdown edition with overwhelming responsive from industry

After three-days of product sourcing and business networking, Techtextil India 2021 in Mumbai concluded in a strong and positive note. The trade fair emerged as a crucial meeting place for the technical textile players to rebuild their supplier links, promote industry integration and engage in lucrative knowledge exchange.

The eighth edition of Techtextil India stood out to be a ground-breaking business platform for the technical textile sector to build a new and strong foundation in the new normal. The aim of the new edition was to promote industry unification and business recovery across the value chain of technical textiles.

The event held at Bombay Exhibition Centre was inaugurated by major dignitaries, including Shri Ajit Chavan, Secretary – Textiles Committee, Ministry of Textiles, Government of India. Over the course of its three buzzing days, the show garnered an attendance of 4,087 visitors drawn by live demonstration of latest products, technologies and innovations exhibited by over 150 technical textile brands on the show floor.

After three-days of product sourcing and business networking, Techtextil India 2021 in Mumbai concluded in a strong and positive note. The trade fair emerged as a crucial meeting place for the technical textile players to rebuild their supplier links, promote industry integration and engage in lucrative knowledge exchange.

The eighth edition of Techtextil India stood out to be a ground-breaking business platform for the technical textile sector to build a new and strong foundation in the new normal. The aim of the new edition was to promote industry unification and business recovery across the value chain of technical textiles.

The event held at Bombay Exhibition Centre was inaugurated by major dignitaries, including Shri Ajit Chavan, Secretary – Textiles Committee, Ministry of Textiles, Government of India. Over the course of its three buzzing days, the show garnered an attendance of 4,087 visitors drawn by live demonstration of latest products, technologies and innovations exhibited by over 150 technical textile brands on the show floor.

The event received an overwhelming response, reflecting industry’s keen interest to explore new developments and opportunities in technical textiles. In regards to the same, Mr Abhijit Kulkarni, President – Textile Engineering Group, A.T.E. India, stated: “It was the first and best physical show also on hybrid mode filled with enthusiastic buyers and customers who visited our booth and had very fruitful discussions with us. Several leading textile manufacturers visited our stalls, including: Strata Geosystems India, SKAPS Industries, Reliance Composites, Paramount Textiles, and Welspun, to name a few.”

Alok Masterbatches Pvt Ltd, Khosla Profile Pvt Ltd, ATE Group, Lucky International, Meera Industries Limited, Park Non-Woven Pvt Ltd, Sarex Chemicals, SICAM, Suntech Geotextile Pvt Ltd and Weavetech Engineers, were among the leading Indian companies exhibiting at the show.

The significance of the three-day fair was further elevated by the German pavilion. Technical textile manufacturers from Germany, such as Autefa Solution Germany GmbH, DILO Systems GmbH, Emtec Electronic GmbH, Georg Sahm GmbH & Co, Karl Mayer Verwaltungsgesellschaft mbH, Merz Maschinenfabrik GmbH and Oerlikon Barmag Zweigniederlassung der Oerlikon Textile GmbH & Co, displayed their latest technologies on the show floor, which garnered significant attention from the Indian buyers.

The first Digital Symposium was another highlight of Techtextil India 2021. The forum delved into a series of crucial topics in technical textiles discussing PLI schemes, FDI opportunities and policies, investment opportunities in Tamil Nadu, & New Investment Opportunities, Sustainable Technical Textiles and Global sustainable approach for Textiles with Antimicrobial Performance.

Concluding on a successful note, Techtextil India 2021 emerged as a platform of new beginnings for the technical textiles sector and for businesses trying to retain their shape and seeking momentum after the tough pandemic phase.

Source:

Messe Frankfurt HK

24.11.2021

PERFORMANCE DAYS cancelled in Munich on December 1-2, 2021

  • Focus now on digital fair platform

The PERFORMANCE DAYS team regrets having to cancel at short notice the physical edition of PERFORMANCE DAYS which was scheduled to take place on December 1-2, 2021 at the Messe München exhibition center. Right up until today, the event organizers of PERFORMANCE DAYS were in the final stages of preparations for the fair. The goal of being able to realize a fully booked fair with a portfolio like in pre-pandemic times seemed to be within reach. The political regulations agreed in Bavaria from November 19, 2021 and the heavily restricted constraints associated with an incidence of 1000 have far-reaching consequences for PERFORMANCE DAYS. As a result of the current sharp rise in the number of infections in Munich, the planned winter edition must now be cancelled as a precaution. The focus now is now completely on the digital fair on December 1 and 2, 2021.

  • Focus now on digital fair platform

The PERFORMANCE DAYS team regrets having to cancel at short notice the physical edition of PERFORMANCE DAYS which was scheduled to take place on December 1-2, 2021 at the Messe München exhibition center. Right up until today, the event organizers of PERFORMANCE DAYS were in the final stages of preparations for the fair. The goal of being able to realize a fully booked fair with a portfolio like in pre-pandemic times seemed to be within reach. The political regulations agreed in Bavaria from November 19, 2021 and the heavily restricted constraints associated with an incidence of 1000 have far-reaching consequences for PERFORMANCE DAYS. As a result of the current sharp rise in the number of infections in Munich, the planned winter edition must now be cancelled as a precaution. The focus now is now completely on the digital fair on December 1 and 2, 2021.

The new measures are scheduled to come into effect in Munich from the middle of this week, which would lead to very short-term changes. The organizers of PERFORMANCE DAYS therefore see themselves in the responsibility to enable a minimum of planning security as well as a responsible handling of the given situation with this decision.

“Exceptional situations require exceptional decisions – making these all the more difficult. After experiencing a very successful and surprisingly well-attended fair with the Functional Fabric Fair by PERFORMANCE DAYS in Portland, Oregon last week, we have tried everything possible up to the last moment and firmly believed that we would finally set a further positive milestone with the physical edition of PERFORMANCE DAYS in Munich. We fulfilled all the requirements, updated our hygiene concept several times to comply with the dynamically changing measures and took all the necessary precautions for a safe event. Unfortunately, current developments do not allow us to host the trade fair event next week, since the undisputed top priority is the protection and health of our visitors. Now our focus turns to the full implementation of the Digital Fair on December 1 and 2, 2021”, explains Marco Weichert, CEO of PERFORMANCE DAYS

Focus on digital platform
The PERFORMANCE DAYS team is now investing all its efforts into implementing the Digital Fair on December 1 and 2, 2021. As part of THE LOOP, those interested have the opportunity as of now to view online the fabric innovations and news for the Winter Season 2023/24, this year’s Focus Topic “Sustainable Nylon” and the latest color trends. In the Marketplace, visitors will be able to view the numerous exhibitor products, including the PERFORMANCE FORUM’s curated sustainable fabric highlights. In order to present the fabrics to visitors as realistically as possible in terms of feel, design and structure in digital form, the PERFORMANCE FORUM has been equipped with new 3D-technology, including innovative tools such as 3D images, video animations and downloadable U3M files. Throughout the Digital Fair, exhibitors and fair visitors can look forward to extensive networking opportunities. For example, as part of the extensive digital supporting program on December 1, with various expert talks, discussion rounds and speakers via livestream, moderated by Charles Ross live from the studio. On December 2, the “sustain & innovate” conference on this year’s Focus Topic “The Sustainable Future of Nylon” will kick off with discussions and panels, moderated by Astrid Schlüchter, Editor-in-Chief of SAZsport and SPORTSFASHION by saz.  

A very special thank you goes out to the entire PERFORMANCE DAYS community with its exhibitors, visitors and partners for their active support, trust, loyalty and understanding in these still extraordinary times. The team looks forward to the Digital Fair on December 1 and 2, 2021 and further ahead to meeting you all personally on April 27 and 28, 2022 at the summer edition of PERFORMANCE DAYS live in Munich.

Source:

Performance Days

10.11.2021

adidas' performance in a challenging environment during Q3 2021

  • Currency-neutral sales up 3%, despite € 600 million drag from external factors*
  • Strong top-line momentum in EMEA, North America and Latin America with double-digit
  • increase across these regions*
  • DTC business growing at double-digit rate in EMEA, North America and Latin America*
  • Gross margin at 50.1% as significantly higher full-price sales partly compensate
  • negative currency impact and higher supply chain costs*
  • Operating margin at 11.7% despite strong double-digit increase in marketing spend*
  • Net income from continuing operations reaches € 479 million*
  • Inventories down 23% currency-neutral*
  • 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted.

  • Currency-neutral sales up 3%, despite € 600 million drag from external factors*
  • Strong top-line momentum in EMEA, North America and Latin America with double-digit
  • increase across these regions*
  • DTC business growing at double-digit rate in EMEA, North America and Latin America*
  • Gross margin at 50.1% as significantly higher full-price sales partly compensate
  • negative currency impact and higher supply chain costs*
  • Operating margin at 11.7% despite strong double-digit increase in marketing spend*
  • Net income from continuing operations reaches € 479 million*
  • Inventories down 23% currency-neutral*
  • 2021 top- and bottom-line outlook confirmed*

“adidas performed well in an environment characterized by severe challenges on both the supply and demand side,” said adidas CEO Kasper Rorsted. “As a consequence of successful product launches we are experiencing strong top-line momentum in all markets that operate without major disruption. Double-digit growth in our direct-to-consumer businesses in EMEA, North America and Latin America is a testament to the strong consumer demand for our products. At the same time, we are navigating through the current world-wide supply chain constraints. Despite all challenges, we are on track to delivering a successful first year within our new strategic cycle.”
 

*See attached document for more information.

More information:
adidas Covid-19
Source:

adidas AG

(c) Euratex
EU-27 Textile & Clothing Turnover
12.10.2021

EURATEX: Latest economic data confirm further recovery of the textile and clothing industry

European Textiles and Clothing (T&C) industry coming out of the Covid19-crisis, but facing new challenges ahead. This recovery may however be disrupted by the current supply chain and energy problems. Latest economic data on the European T&C industry confirm further recovery from the corona pandemic. The textile activity has now surpassed its pre-pandemic level from Q4 2019 (+3.6%); the clothing sector still remains 11.5% below, but continues to improve.

European Textiles and Clothing (T&C) industry coming out of the Covid19-crisis, but facing new challenges ahead. This recovery may however be disrupted by the current supply chain and energy problems. Latest economic data on the European T&C industry confirm further recovery from the corona pandemic. The textile activity has now surpassed its pre-pandemic level from Q4 2019 (+3.6%); the clothing sector still remains 11.5% below, but continues to improve.

In quarter-on-quarter terms, the EU turnover showed signs of improvements across the sector. The textile turnover increased by +3.3% in Q2 2021, after slightly contracting in Q1 2021. Similarly, the business activity in the clothing sector expanded by +7% in Q2 2021, after increasing by +1% in the previous quarter.
 
In the 2nd quarter 2021, the EU-27 trade balance for T&C improved, resulting mostly from an increase of export sales across third markets and a drop of textile imports. T&C Extra-EU exports boomed by +49% as compared with the same quarter of the previous year. T&C Extra-EU imports went down by -26% as compared with the same quarter of the previous year, following a decrease of imports from some main supplier countries. EU imports from China and the UK collapsed due to a combination of Brexit and weaker demand in Europe.
 
During the second quarter of 2021, job creation was slowly stabilising in the textile industry (-0.2% q-o-q), while employment in the clothing sector continued to be affected by lower levels of production activity in industry during the first part of the year (-1.2%). When compared to its pre-pandemic level in Q4 2019, EU employment in Q2 2021 was still 4.4% down in textiles and 11.8% down in clothing.

However, this fragile recovery is hampered by higher shipping costs and prices’ increase in raw materials and energy. The cost of energy, in particular gas, has increased more than 3 times since the beginning of this year. Since the announcement of the EU’s “Fit for 55” package, we have seen CO2 prices rising above €60. This inevitably has an impact on the industry’s competitiveness, especially in a global context. The future recovery is also threatened by some factors limiting production, such as shortage of labour force and equipment, which are putting additional pressure on T&C industries.

Director General Dirk Vantyghem commented on these latest figures: “Our companies have shown great resilience during the pandemic, and their latest export performance is an encouraging sign of recovery. This recovery may however be disrupted by the current supply chain and energy problems. Once again, recent developments show that this transition towards more sustainable production can only work if organised in a global context, avoiding carbon leakage and with an effective level playing field. This must be considered in the upcoming EU Textiles Strategy.”

More information:
Euratex
Source:

Euratex

Ascend Performance Materials, APMPR063 ©Ascend Performance Materials
SARS-CoV-2, Influenza A inactivated by zinc-embedded nylon fabric.
22.09.2021

SARS-CoV-2, Influenza A inactivated by zinc-embedded nylon fabric

  • A paper published in ACS Applied Materials Interfaces details effectiveness, describes protocol for future testing

An international team of scientists and engineers from the University of Cambridge, the Icahn School of Medicine at Mount Sinai, ResInnova Labs and Ascend Performance Materials has found that a nylon fabric embedded with zinc ions successfully inactivated 99% of the viruses that cause COVID-19 and the common flu.

Face masks, protective clothing and filters are used to slow the spread of viruses. But poor-quality masks can harbor active viruses from infected wearers, posing a transmission risk.

“A major challenge is absorption and inactivation,” said Vikram Gopal, Ph.D., co-senior author and chief technology officer at Ascend Performance Materials. “Respiratory viral illnesses, such as COVID-19, and the flu, are transmitted through droplets and aerosols. Polypropylene, the material in commonly used disposable masks, is a hydrophobic plastic and does not absorb moisture. Instead, the viruses can sit on the surface of the mask, posing a transmission risk when the mask is handled.”

  • A paper published in ACS Applied Materials Interfaces details effectiveness, describes protocol for future testing

An international team of scientists and engineers from the University of Cambridge, the Icahn School of Medicine at Mount Sinai, ResInnova Labs and Ascend Performance Materials has found that a nylon fabric embedded with zinc ions successfully inactivated 99% of the viruses that cause COVID-19 and the common flu.

Face masks, protective clothing and filters are used to slow the spread of viruses. But poor-quality masks can harbor active viruses from infected wearers, posing a transmission risk.

“A major challenge is absorption and inactivation,” said Vikram Gopal, Ph.D., co-senior author and chief technology officer at Ascend Performance Materials. “Respiratory viral illnesses, such as COVID-19, and the flu, are transmitted through droplets and aerosols. Polypropylene, the material in commonly used disposable masks, is a hydrophobic plastic and does not absorb moisture. Instead, the viruses can sit on the surface of the mask, posing a transmission risk when the mask is handled.”

Cotton also has problems, Dr. Gopal said. “Cotton effectively absorbs moisture, but it doesn’t inactivate the virus – again, posing a transmission risk,” he said. In the paper published in ACS Applied Materials Interfaces, the researchers described how a fabric made of nylon 6,6 embedded with active zinc ions absorbed virus-containing moisture droplets and effectively inactivated the particles. The fabric produced a 2-log, or 99%, reduction of virus particles in one hour.

The research team also was able to demonstrate that nylon with active zinc ions remains stable over time, keeping its virus-inactivating properties after 50 washes. “The study shows how nylon textile fabric with zinc outperforms the widely used cotton and polypropylene materials at virus absorption and inactivation,” Dr. Gopal said. The findings have significant implications for future development of PPE, Dr. Gopal said. “Pathogen-free PPE does more than just cut down the risk of transmitting the virus,” Gopal said. “By making PPE washable and reusable, you reduce the need for single-use products, keeping hundreds of millions of masks out of landfills.”