14 May 2008, announcement 17
Interim financial report
- 1st quarter 2008
SUMMARY - SOUND START TO 2008
With Group revenue of 3,366 mDKK (+8%), operating income (EBIT) of 226 mDKK
(+18%) and Group net income before tax of 184 mDKK (+15%), satisfactory
progress has been made in comparison with the same period in 2007. Despite
uncertain market conditions, and signs of slowdown in a small sector in the
North American market, 1st quarter developments may be described as “business
as usual”.
These developments are in harmony with our expectations, and based on a highly
favourable 1st quarter for NKT Flexibles, expected Group net income before tax
has been revised upwards from previously 900 mDKK to around 950 mDKK.
Overall organic growth development for the Group was as expected in 1st quarter
2008 and amounted to 4%. This development was based on organic growth of 4% for
both NKT Cables and Nilfisk-Advance. Growth at NKT Cables was influenced by the
supply of a major high voltage project being postponed until later in the year.
Growth at Nilfisk-Advance was influenced by Easter falling in the 1st quarter
in the case of 2008, rather than in the 2nd quarter as in 2007. The effect has
been evidenced by abnormally high growth in April 2008. NKT Photonics Group
made a slow start to the year, and NKT Flexibles (51%) had a strong 1st quarter
with organic growth of 37%.
Since the close of the 1st quarter two important framework agreements have been
signed. On 24 April we announced that NKT Cables had been chosen as a supplier
to an Extra High Voltage Project in the Netherlands with an expected completion
date of 2010. And on 5 May we announced that NKT Flexibles had signed a
groundbreaking framework agreement with Brazil's largest oil company to supply
offshore pipes in the period 2009-2011. Details are contained in the company
reviews.
Revised expectations for 2008
Predicted organic growth in full-year revenue remains around 7%, which is based
on unchanged expectations for NKT Cables (8%), Nilfisk-Advance (5%) and NKT
Photonics (30%). Based on current metal prices this corresponds to anticipated
revenue of around 14.8 bnDKK, as against 14.5 bnDKK previously forecast.
Based on 1st quarter developments at NKT Flexibles, and the fact that forecasts
can now be made for the rest of the year with less uncertainty than at the
start, we have adjusted our expectations with regard to Group net income before
tax from around 900 mDKK previously to around 950 mDKK.
