DGAP-News: NKT Holding A/S
13.11.2014 / 08:02
---------------------------------------------------------------------
Nasdaq Copenhagen
Nikolaj
Plads 6
DK -
1007 Copenhagen K
13
November 2014
Announcement No. 15
NKT improved
operational EBITDA by 13% to DKK 848m year to date, and realised 2% organic
growth
NKT
increased its operational EBITDA by 5% in Q3 and by 13% for the first nine
months of 2014. Expectations for full-year 2014 are maintained.
Highlights for Q3 and
year to date
- Operational
EBITDA increased to DKK 270m and operational EBITDA margin (std. metal prices)
was 8.2% (YTD: DKK 848m and 8.7%)
- Organic growth was 1% and revenue (std. metal
prices) amounted to DKK 3,281m (YTD: 2% and DKK 9,797m)
- In NKT Cables, the expected impact of the DRIVE
programme for full-year 2014 increased by DKK 40m to DKK 170m and the 2014 run
rate increased to DKK 250m
- Nilfisk-Advance made further investments in
long-term growth by enhancing its sales and service set-up
NKT's Group Executive Director & CFO, Michael Hedegaard
Lyng, commenting on developments:
- We continue to see a satisfactory increase in our operational EBITDA, for the
quarter as well as for the year to date. At the same time, the organic growth
is within the guided range of 2-3% for the full-year. Overall, the performance
is in line with expectations.
- In Nilfisk-Advance,
overall organic growth is satisfactory viewed against the background of a very
strong Q3 2013 and the development in the world economy. As anticipated,
operational EBITDA is slightly lower as a result of the investments made in the
sales and service set-up to secure long-term growth. NKT Cables has performed
as expected in terms of organic growth. The current order portfolio generates
slightly lower revenue but higher profitability, and combined with the effects
of the DRIVE efficiency improvement programme, it is satisfying to see that
operational EBITDA improved by 30% in Q3 and is up by 38% for the year to date,
says Michael Hedegaard Lyng.
NKT Cables: Expected
DRIVE impact was raised by DKK 40m to DKK 170m for full-year 2014
DRIVE is
generating results faster than anticipated with cost savings of DKK 50m for Q3
and DKK 110m for the year to date. Consequently, the expected 2014 run rate was
raised to DKK 250m and the full-year impact to DKK 170m. At the same time
capital expenditure is reduced to DKK 10m. Entering 2016, the expected overall
impact of DRIVE remains at DKK 300m.
The effects of DRIVE
impacted positively NKT Cables' operational EBITDA margin (std. metal prices)
by 8.2% in Q3 against 6.2% in Q3 2013, and the year to date margin being 6.6%
(Q3 2013: 8%) the year-to-date benefit being 6.6%. Overall organic growth for
NKT Cables is 1% for Q3. The figure for the year to date is -2% which is in
line with expectations. Projects realised 13% growth which was solely derived
from remedial work on the Baltic 1 project. Products and APAC recorded negative
organic growth of 5% and 10%, respectively.
Nilfisk-Advance:
Investments in long-term growth continued
The
overall organic growth was 5% year to date, while the development in Q3 was
flat. EMEA recorded organic growth of 3% which was above the general economic
growth rate for the region. Americas and APAC recorded negative organic growth
of 1% and 8%, respectively. The operational EBITDA margin was 11.5% year to
date and 9.0% in Q3, down 1% point from Q3 2013 which was mainly due to
investments in an enhanced sales and service set-up.
Full-year 2014
expectations unchanged
NKT's
expectations for 2014 are unchanged with consolidated organic growth of 0-3%
and an operational EBITDA margin of 9-9.5% (std. metal prices).
Please address any
questions to the undersigned on telephone +45 4348 2000.
Yours sincerely
NKT
Holding A/S
Michael
Hedegaard Lyng
Group
Executive Director & CFO
News Source: NASDAQ OMX
---------------------------------------------------------------------
13.11.2014 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP 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: NKT Holding A/S
Denmark
ISIN: DK0010287663
End of News DGAP News-Service
---------------------------------------------------------------------
296925 13.11.2014
