NKT Holding A/S
16 November 2010
Announcement No. 24
The Group performed well in 3rd quarter 2010,
developments at the new Cologne production facility
helping to ensure solid organic growth of 17%. Earnings
for most NKT business segments were also satisfactory,
but overall the Group was influenced by expected high
costs related to running in the Cologne plant. Operational
EBITDA for the first nine months of 2010 was 792 mDKK
Summary
NKT experienced a satisfactory 3rd quarter
which lifted revenue for the first nine months
to 10,422 mDKK, corresponding to organic
growth of 9% relative to the same period last
year. In 3rd quarter 2010 NKT Cables more
than doubled its growth in the segment for
high voltage cables and submarine cables
compared with 3rd quarter 2009. For Nilfisk-
Advance, nominal revenue increased by 10%
in 3rd quarter 2010 but the effect of exchange
rates reduced organic growth to 5%.
NKT's operational EBITDA comprised 275
mDKK in 3rd quarter 2010, an increase of
5% (3rd quarter 2009: 263 mDKK).
Operational EBITDA for the first nine
months of 2010 was 792 mDKK, an increase
of 88 mDKK or 13% on the same period in
2009. EBITDA margin on a rolling 12-month
basis (LTM) was 9.5% at 30 September 2010,
down slightly from 9.8% at 30 June 2010.
Working capital increased in the 3rd
quarter and comprised 3,173 mDKK at 30
September 2010, corresponding to 18.5%
(LTM) (30 June 2010: 17.4%).
Full-year expectations for revenue and
operational EBITDA remain consistent with
initial announcements, but basis exists for a
more precise prediction of organic growth,
which is currently around 10%. Operational
EBITDA is unchanged at around 1 bnDKK.
NKT Cables realized organic growth in 3rd
quarter 2010 of 25% (YTD 2010: 10%)
compared with 3rd quarter 2009. EBITDA
for 3rd quarter 2010 was 142 mDKK (3rd
quarter 2009: 118 mDKK), corresponding
to an EBITDA margin of 9.3% in standard
metal prices, against 10% for the same
period in 2009.
Nilfisk-Advance realized organic growth in
3rd quarter 2010 of 5% (YTD 2010: 7%)
compared with 3rd quarter 2009. Organic
growth by region was: EMEA 6%, the
Americas 5% and Asia/Pacific 1%. Gross
profit was maintained in 3rd quarter 2010
despite rising raw material prices.
Operational EBITDA was 129 mDKK in 3rd
quarter 2010 (3rd quarter 2009: 121 mDKK),
corresponding to an EBITDA margin of 9.4%
for 3rd quarter 2010 against 9.7% for the
same period in 2009.
NKT Flexibles realized 3rd quarter EBITDA
of 49 mDKK (YTD 2010: 142 mDKK).
Photonics Group reduced its EBITDA loss in
3rd quarter 2010 by 7 mDKK to -2 mDKK
(YTD 2010: -13 mDKK).
