Draka Holding N.V.: Trading Update[1]
(Thomson Reuters ONE) -
Recovery in demand gaining momentum, forecasted operating result[2] of ? 80-85
million of which ? 46-51 million is expected for H2 2010 (up 34-49% vs. H2 2009)
Net result[2] of ? 50-55 million expected in 2010
* Market conditions improving compared with H2 2009 and H1 2010. Recovery in
both industry-related cable activities and communication cable activities.
European construction markets stable overall, with slowing decline in the
Benelux compensated by modest growth in the Scandinavian countries. Pressure
on prices has not increased, pressure on margins from higher raw-material
prices (polymers) has eased.
* Volume growth 3.5% in period from 1 July to 31 October 2010; growth
gathering pace after +0.9% in Q2 2010 and -2.5% in Q1 2010, driven mainly by
stronger demand for high-end special-purpose cables and optical fiber
telecommunication cables.
* EBITDA[2] expected to rise to ? 142-147 million in 2010 (? 138.2 million in
2009).
* Operating result[2] of ? 80-85 million expected in 2010 compared with ?
75.3 million in 2009. This implies a forecasted result of ? 46-51 million in
H2 2010, up 34-49% vs. H2 2009.
* Result for the year[2] expected to be around ? 50-55 million compared with
? 48.3 million in 2009.
* Maintaining momentum in cost-reduction programmes: projects already in
progress are on track and new programmes have been started. Reduction in
cost base of around ? 30 million in 2010 and additional circa ? 10 million
in 2011.
* Operating working capital as a percentage of revenue expected to rise
slightly to 14-15% from 13.7% in 2009. Higher working capital due to volume
growth, considerably higher copper prices and exchange effects offset by
free cash flow. Net debt expected to remain stable relative to year-end
2009 (? 295 million).
* Unsolicited indicative non-binding proposal by Nexans: after careful
consideration the Boards of Draka are of the view that the current proposal
is inadequate and have initiated a review of its strategic alternatives,
including continuing the stated stand-alone strategy.
This trading update for 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 full-year figures on Tuesday, 15 February 2011
(before start of trading).
Commenting on the expected results in 2010, Frank Dorjee, Chairman and CEO of
Draka Holding N.V, said: 'The cautious recovery in demand that started in the
second quarter has continued and gathered pace in the second half of 2010. This
is expected to translate into a considerably higher operating result - excluding
non-recurring items - in H2 2010 compared with both H2 2009 and H1 2010. With
demand picking up, we are deriving extra benefit from the strong reduction in
our cost base we have achieved in the past two years and we have embarked on new
initiatives that will yield a further reduction in our cost base in 2011. It is
also encouraging that price pressure has not intensified and the pressure on
margins from higher raw-material prices is easing.
We look forward to 2011 with confidence built on consistent pursuit of our
strategy, including new growth initiatives and cost-reduction measures, and the
market recovery which is now in evidence.
We remain of the view that the current proposal from Nexans is not in the
interests of our stakeholders and are reviewing our alternatives. We are making
good progress with this review and will keep all of our stakeholders informed of
any significant developments.'
[1] All figures are unaudited.
[2] Excluding non-recurring items. Gross non-recurring items in 2010 are
expected to be around ? 45 million negative (2009: ? 66.5 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.
+------------------------------------------------------------------------------+
|2011 Financial calendar (provisional) |
+----------------------------------------------------+-------------------------+
|Publication of 2010 full-year figures |Tuesday 15 February 2011 |
| |(before start of trading)|
+----------------------------------------------------+-------------------------+
|General Meeting of Shareholders, Holiday Inn |Monday 8 May 2011 |
|Amsterdam |Start at 14.30h |
+----------------------------------------------------+-------------------------+
|Publication of trading update for the first half of |Wednesday 18 May 2011 |
|2011 |(before start of trading)|
+----------------------------------------------------+-------------------------+
|Publication of 2011 half-year figures |Thursday 4 August 2011 |
| |(before start of trading)|
+----------------------------------------------------+-------------------------+
|Publication of trading update for the second half of|Tuesday 15 November 2011 |
|2011 |(before 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, Industrial and Offshore 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 at www.draka.com.
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Source: Draka Holding NV via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 11.11.2010 - 07:45 Uhr
Sprache: Deutsch
News-ID 48655
Anzahl Zeichen: 10262
contact information:
Town:
Amsterdam
Kategorie:
Business News
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