NKT Cables Reports Third Quarter Results (Germany)

NKT’s revenue development for 3rd quarter 2011 was in line with expectations. Earnings increased by 15%, positively influenced by satisfactory results for both Nilfisk-Advance and NKT Flexibles. For NKT Cables, the factory in Cologne showed improved productivity but continued to impact earnings negatively.

3rd quarter 2011 compared with 3rd quarter 2010

• Revenue was 3,912 mDKK, an increase of 187 mDKK corresponding to an organic growth of 1%

• The operational EBITDA was 315 mDKK, an increase of 40 mDKK or 15%

• The operational EBITDA margin in standard prices was 10.4%, an increase of 1.1%-points

• The operational EBITDA for the 3rd quarter 2011 was positively influenced by the price adjustment mechanism relating to NKT Flexibles. This amounted to 128 mDKK, of which NKT’s share was 65 mDKK. The mechanism has been discussed in previous interim reports.

The first 9 months of 2011 against same period in 2010

• Revenue was 11,702 mDKK, an increase of 1,280 mDKK, corresponding to an organic growth of 5%

• The operational EBITDA was 754 mDKK, a decrease of 38 mDKK, chiefly caused by a negative development for NKT Cables of 174 mDKK, but influenced by a rising profit share from NKT Flexibles of 82 mDKK

• The operational EBITDA margin in standard prices was 8.4%, a fall of 1%-point.

Position as at 30 September 2011

• Working capital was 3,106 mDKK, against 3,492 mDKK at 30 June 2011, a decrease of 386 mDKK

• The net interest bearing debt was 4,771 mDKK, against 4,940 mDKK at 30 June 2011, a decrease of 169 mDKK

• The net interest bearing debt corresponded to 5.0x the last 12 months’ operational EBITDA (30 June 2011: 5.4x).

NKT business units

• NKT Cables. An Operational Excellence programme was initiated in order to strengthen earnings and productivity over the next 12 months. The 3rd quarter EBITDA was 71 mDKK

• Nilfisk-Advance. Acquisitions and expansion in growth markets, most recently with establishment in the forthcoming Winter Olympics region in Russia, consolidated the global growth. The 3rd quarter organic growth was 9% and the operational EBITDA was 160 mDKK

• Photonics Group. The 3rd quarter EBITDA was 3 mDKK

• NKT Flexibles. A price adjustment from a previous framework agreement influenced positively. A review of the strategic options is in progress and proceeding as planned. The 3rd quarter EBITDA was 90 mDKK (51% share).

Expectations for 2011

• The expected organic growth in revenue remains at approx. 5%

• Expected earnings (EBITDA), previously 1,000-1,100 mDKK, can now be more precisely stated at approx. 1,000 mDKK.

[mappress]
Subsea World News Staff , November 15, 2011;  Image: NKT Cables