NKT Holding Interim Report Q2 2012
NASDAQ OMX Copenhagen
Nikolaj Plads 6
DK-1007 Copenhagen K
24 August 2012
Release No. 19
Uncertainty about the European economy impacted NKT's revenue in Q2, but despite a decline of 3%, the Group managed to increase operational EBITDA by 21%. This indicates that costs are kept on a short leash and thereby mitigates the effects of declining growth. The same trend was expressed for 1st half, where organic growth for the Group decreased by 4%, while operational EBITDA increased by 20%.
Profit from the sale of NKT Flexibles was 100 mDKK higher than previously expected. The sale has reduced the Group's net interest-bearing debt by 2 bnDKK, making today's debt equivalent to 2.5 times last 12 months operational EBITDA.
Also working capital and cash flow developed positively. Working Capital was reduced 1% point from Q1 2012, and cash flow from operations was on a par with the same period the year before.
In view of the current economic development particularly in Europe, the Group no longer expects revenue growth in 2012. The competition in the market for high voltage cables has grown, customers have postponed cable projects into 2013, and in China, the market for catenary wires for high-speed railway projects, develops slower than expected. Also Nilfisk-Advance is affected by the economic slowdown, and therefore NKT alters the forecast for 2012 from the previous 5-10% growth to zero growth.
However, earnings are not expected to decrease to the same extent. In recent years NKT Cables has redirected business towards being a project based submarine- and high voltage cable producer, and Nilfisk-Advance strongly focuses on emerging markets. Based on this, operational EBITDA for 2012 is now expected to be approx. 1,050 mDKK, against earlier expected earnings in the range 1,050-1,250 mDKK. Still up 200 mDKK on 2011 results and thus showing the robustness of the business model.
Please direct any questions to the signer on telephone +45 4348 2000.
Yours faithfully
NKT Holding A/S
Thomas Hofman-Bang
President and CEO
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NKT Holding A/S is one of Denmark's major industrial groups with 9,100 employees at 31 December 2011 and a turnover in 2011 of 15.6 bnDKK. The group consists of NKT Cables (the energy sector), Nilfisk-Advance (the cleaning industry) and Photonics Group (the optical industry). Read more at www.nkt.dk.