The NKT Group's companies made a good start to 2007 in terms of both revenue
and earnings. Development has been very satisfactory and prospects for the year
have been revised upwards.
The NKT Group's 1st quarter revenue was 3,130 mDKK (+30% compared with last
year) and operating income (EBIT) was 191 mDKK (+54% compared with last year).
Earnings capacity continues to rise, and an EBITDA margin of 8.2% was realised,
as against 7.3% in the same period last year. Pre-tax profit was 160 mDKK, as
against 110 mDKK last year, an increase of 45%.
Overall organic growth for the NKT Group was 14%. This advance was attributable
to continuing high levels of organic growth in NKT Cables (21%),
Nilfisk-Advance (8%) and also NKT Flexibles (54%). The NKT Photonics Group is
progressing as planned. Development was therefore very satisfactory.
After the end of the quarter - in April and May - we implemented a number of
initiatives having relation to the strategic expansion of NKT's companies; in
China we entered into agreement concerning acquisition of a leading
manufacturer and supplier of cleaning equipment, while in Germany, UK and
Denmark, several small acquisitions were made that support the business
platforms of the NKT Cables Group and the Nilfisk-Advance Group, respectively
(see report of group companies starting on page 4).
Prospects for 2007 revised upwards
Forecast revenue for the year has increased from around 12.7 bnDKK to around
13.2 bnDKK, and earnings before tax has increased to around 850-900 mDKK, as
against 800-850 mDKK forecast previously.
