Dantherm
Improved development in operations in Q3 2012 – Telecom sales still low
Dantherm 31.10.2012 08:30 --------------------------------------------------------------------------- Skive, Denmark, 2012-10-31 08:30 CET (GLOBE NEWSWIRE) -- Dantherm realised revenue of DKK 131m and an operating profit (EBIT) of DKK 5.7m in Q3 2012. The development in Q3 was positive compared with the first half year of 2012, but lower than that of the same period in 2011. This is attributable to lower sales within Telecom, which now contrary to previous announcements are expected to continue throughout the year. Revenue and EBIT for 2012 are therefore expected to be lower than previously announced. President & CEO Torben Duer says: 'Sales of HVAC products once again developed positively in Q3 with growth of 20 %. Sales to Telecom network operators have also increased. However, sales to Telecom network suppliers continued the negative trend due to lower demand from our major customers. Dantherm's strategy continues to focus on strengthening sales within HVAC and Telecom network operators, whilst also being prepared for a normalisation of the demand from network suppliers.' Development in Q3 2012 -- Revenue for Q3 was DKK 131m, the highest this year, relative to DKK 145m in Q3 2011. Sales within HVAC increased by 20 %, but this could not make up for a decrease in sales of 41% within Telecom. -- An operating profit (EBIT) of DKK 5.7m was posted against an operating profit of DKK 10.7m in Q3 2011. The lower revenue is the main reason for the lower operating results. -- Dantherm's earnings before tax (EBT) totalled a profit of DKK 1.8m against a profit of DKK 7.3m in Q3 2011. -- In consequence of the financial development in 2012, restructurings have been carried out leading to reductions in the number of hourly paid employees by approx. 70 people in our companies in Denmark and China. Reductions in the number of salaried employees in Denmark will reduce overheads additionally. -- Cash flows from operating activities were negative at DKK 0.7m in Q3 2012 against positive cash flows from operating activities at DKK 7.1m in Q3 2011. -- Dantherm's net interest-bearing debt amounted to DKK 188m as of 30 September 2012, which is DKK 5m lower than that at the same time in 2011. The interest-bearing debt includes finance lease commitments and mortgage debt of DKK 104m and a net amount of DKK 84m has been drawn under the company's operating credit facilities. Development in the first nine months of 2012 -- Revenue was DKK 364m relative to DKK 415m in the same period of 2011. Sales within HVAC increased by 22 %, but this could not make up for a decrease in sales of 45 % within Telecom. -- An operating profit (EBIT) of DKK 2.9m was posted against an operating profit of DKK 19.5m in the first nine months of 2011. -- Earnings before tax (EBT) totalled a loss of DKK 5.2m against a profit of DKK 8.7m in the same period of 2011. -- Cash flows from operating activities were positive at DKK 13.6m against DKK 9.9m in the first nine months of 2011. Outlook for 2012 -- As previously announced, Dantherm realised a weak H1 2012 in consequence of postponed projects within Telecom. This development continued in Q3 and is now expected to continue throughout the year, contrary to previous announcements. -- For 2012, Dantherm expects total revenue of approx. DKK 470m and an operating loss (EBIT) of approx. DKK 10m against previously announced expectations of approximate revenue of DKK 500m and an approximate operating profit (EBIT) of DKK 10m. -- New initiatives to improve market presence, product development and cost-effectiveness continue in order to support the Dantherm growth strategy. Any enquiries concerning this announcement can be directed at CEO Torben Duer on tel.: +45 99 14 90 14. News Source: NASDAQ OMX 31.10.2012 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Dantherm Denmark Phone: Fax: E-mail: Internet: ISIN: DK0010223692 WKN: End of Announcement DGAP News-Service ---------------------------------------------------------------------------
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