Draka Holding N.V.: Trading Update[1]
(Thomson Reuters ONE) -
Operating result[2] of ? 31-36 million and net result[2] of ? 17-22 million
expected in H1 2010 (respectively ? 41.0 million and ? 19.4 million in H1
2009)
Sustained focus on cost and cash
Cautiously optimistic for second half of 2010
* Volume decline of 0.8% in first four months of 2010; stabilised relative to
H2 2009. Lower volume mainly due to reduced construction volumes in Europe,
drop in demand for elevator cable and copper telecommunication cable.
Recovery in demand for automotive cable, first seen in H2 2009, sustained
and optical fiber business continues to be buoyant.
* EBITDA[2] expected to be ? 61-66 million in H1 2010 (? 71.8 million in H1
2009).
* Operating result[2] of ? 31-36 million expected in H1 2010, compared with
? 41.0 million in H1 2009.
* Result for the period[2] expected to be around ? 17-22 million, compared
with ? 19.4 million in H1 2009.
* Market conditions stabilised compared with H2 2009. Tentative signs of
underlying recovery with respect to industrial related cable activities,
construction related cable activities in Asia and communication cable
activities. Provided international confidence continues to recover, the
positive impact this will have should be reflected in Draka's results from
the second half of 2010 onwards.
* Cost-saving programmes on track. Annual savings estimated at ? 30 million in
2010, with savings of approximately ? 15 million to be achieved in H1 2010.
* Operating working capital as a percentage of revenue expected to be 15-17%,
in line with the first half of 2009 (H1 2009 15.8%).
* Net debt expected to be ? 50-60 million higher than at year-end 2009 (? 295
million), mainly owing to the increase in working capital due to a
significant rise in the price of copper.
Amsterdam, 18 May 2010 - This trading update for H1 2010 is issued by Draka
Holding N.V., one of the world's leading producers of low-voltage cable, cable
for OEMs and communication cable, ahead of the publication of the half-year
figures on Thursday, 19 August 2010 (before start of trading).
Commenting on the expected results in the first half of 2010, CEO Frank Dorjee
said, 'The general stabilisation of demand on the world cable market seen in the
second half of 2009 has continued in the first months of 2010. The additional
cost savings, being realized by Draka, are expected to absorb the effects of the
highly competitive market environment. On balance, we expect Draka to achieve a
satisfactory operating result over the first six months of 2010 -- before
non-recurring items -- comparable with those achieved in the second half of
2009.
Although still fragile, we note that the recovery of the global economy is
becoming broader based. Developments in Draka's industrial and communication
cable activities and in the construction-related cable business in Asia, in
particular, feed our cautious optimism for the second half of the year, provided
the restoration of international confidence is maintained. With its streamlined
organisation and reduced cost base, Draka should be capable of profiting to the
full from the eventual recovery of our end-markets.'
[1] All figures are unaudited.
[2] Excluding non-recurring items. Gross non-recurring items in H1 2010 are
expected to be around ? 18 million negative (H1 2009: ? 17.9 million negative).
Pdf version of the press release
Pdf versie van het persbericht
NOTE FOR EDITORS: for more information, please contact:
Draka Holding N.V.:
Michael Bosman - Director Investor Relations +31 20 568 9805;
michael.bosman(at)draka.com
Cautionary note regarding forward-looking statements
This announcement contains forward-looking statements. Forward-looking
statements are statements that are not based on historical fact, including
statements about our beliefs and expectations. Any statement in this
announcement that expresses or implies our intentions, beliefs, expectations or
predictions (and the assumptions underlying them) is a forward-looking
statement. Such statements are based on plans, estimates and projections as
currently available to the management of Draka. Forward-looking statements
therefore speak only as of the date they are made and we assume no obligation to
publicly update any of them in the light of new information or future events.
Forward-looking statements involve inherent risks and uncertainties. A number of
significant factors could therefore cause actual future results to differ
materially from those expressed or implied in any forward-looking statement.
Such factors include but are not limited to conditions on the markets in Europe,
the United States and elsewhere from which we derive a substantial portion of
our revenue, potential defaults on the part of borrowers or trading
counterparties, the implementation of our restructuring programme including the
envisaged reduction in headcount and the reliability of our risk management
policies, procedures and methods. For more information on these and other
factors, please refer to our annual report. The forward-looking statements
contained in this announcement are made as of the date hereof and the companies
assume no obligation to update any forward-looking statement contained in this
announcement.
+------------------------------------------------------------------------------+
|2010 Financial calendar (provisional) |
| |
| |
+----------------------------------------+-------------------------------------+
|Publication of 2010 half-year figures |Thursday, 19 August 2010 (before |
| |start of trading) |
| | |
+----------------------------------------+-------------------------------------+
|Publication of trading update for the |Thursday, 11 November 2010 (before |
|second half of 2010 |start of trading) |
| | |
| | |
+----------------------------------------+-------------------------------------+
Company profile
Draka Holding N.V. ('Draka') is the holding company of a number of operating
companies that are active worldwide in the development, production and sale of
cable and cable systems. Draka's activities are divided into three groups:
Energy & Infrastructure, Industry & Specialty and Communications.
Within these three groups, the activities are organised into divisions. Energy &
Infrastructure consists of the Europe and Asia-Pacific divisions; Industry &
Specialty consists of the Automotive & Aviation, Elevator Products, Cableteq USA
and Industrial divisions and the Communications Group comprises the Telecom
Solutions, Multimedia and Specials, Americas and Optical Fiber divisions.
Draka has 68 operating companies in 31 countries throughout Europe, North and
South America, Asia and Australia. Worldwide, the Draka companies employ some
9,600 people. Draka Holding N.V.'s head office is in Amsterdam. In 2009, Draka
reported revenue of ? 2.0 billion and net income of ? 48.3 million (excluding
non-recurring items).
Draka Holding N.V. ordinary shares and subordinated convertible bonds are listed
on NYSE Euronext
Amsterdam. The company is included in the Next150 index and the AMX index
(Amsterdam Midkap index). Options on Draka shares are also traded on the NYSE
Euronext Amsterdam Derivative Markets.
More information on Draka Holding N.V. can be found atwww.draka.com
[HUG#1416489]
Unternehmensinformation / Kurzprofil:
Datum: 18.05.2010 - 07:31 Uhr
Sprache: Deutsch
News-ID 21018
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contact information:
Town:
Amsterdam
Kategorie:
Business News
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