• NKT Q3 2016: Satisfactory financial performance

    Source: Nasdaq GlobeNewswire / 11 Nov 2016 07:00:10   Europe/London

    Nasdaq Copenhagen
    Nikolaj Plads 6
    DK-1007 Copenhagen K

    11 November 2016
    Announcement No. 53

    NKT Q3 2016: Satisfactory financial performance 

    Group Executive Director, Michael Hedegaard Lyng states:
    - Our third-quarter financial performance was satisfactory, based on organic growth and improved earnings in both Nilfisk and NKT Cables. Overall, the quarter represented a number of milestones for NKT, including implementation of a new organisation structure in Nilfisk to drive our growth ambitions, which also allows us to save EUR 35m, as well as NKT Cables’ acquisition of ABB HV Cables and divestment of non-core businesses in Automotive and China. Furthermore, the Board announced the intention to split NKT Holding into two separately listed entities. In the businesses our focus remains, however, on executing on daily operations to reach our full-year guidance. 

    Q3 2016 financial highlights

    • Operational EBITDA amounted to EUR 47.4m. Operational EBITDA margin (std. metal prices) was 10.4%, up 2%-points
    • Organic growth was 2%, and revenue amounted to EUR 519.0m
    • Working capital was EUR 286.0m, a reduction of EUR 68.5m from Q3 2015
    • Cash flow from operating activities was EUR 48.1m, up from EUR 36.4m in Q3 2015
    • Return on capital employed was 10.5%, down from 11.2% in Q3 2015
    • Gross proceeds of approx. EUR 1.4bn from equity raise in relation to acquisition of ABB HV Cables

    2016 outlook revised
    Driven by the development in NKT Cables, NKT’s overall expectations for operational EBITDA margin (std. metal prices) are raised to approx. 9.6% against approx. 9.4% previously anticipated. Organic growth is adjusted to negative 2-3% against a previously anticipated flat organic growth, cf. page 18 in the Q3 2016 Interim Report. 

    Nilfisk: 4% organic growth and operational EBITDA improved by 25% to EUR 26.6m. Roll-out of new organisational structure to secure growth and cost savings programme of EUR 35m
    In Q3, Nilfisk organic growth was driven by EMEA and the Americas and operational EBITDA margin was improved by 1.3%-points to 10.6%, due to increased gross margin. Implementation of a new organisational structure and business model to increase customer focus was on track. The cost savings programme with expected EUR 35m impact by 2019 was further detailed and implementation on track. 

    NKT Cables: 1% organic growth and operational EBITDA increased by 39% to EUR 20.5m. Acquisition of ABB HV Cables and divestment of non-core businesses
    In Q3, the Projects business drove organic growth and operational EBITDA margin (std. metal prices) was improved by 3.0%-points to 10.4%. NKT Cables announced the acquisition of ABB HV Cables to enter the DC high-voltage market, while operations in China and the Automotive business were divested to focus on core business.  

    NKT Photonics: Financial performance as expected. Satisfactory order intake and backlog
    NKT Photonics realised organic growth of -6%, which should be seen against a very strong Q3 2015. Sensing & Energy delivered a robust performance, which was offset by the remaining two segments. The integration of Fianium progressed to plan. 

    NKT will host a teleconference for investors and financial analysts at 09:30 CET today, and it can be accessed at www.nkt.dk. The presentation for the call will be available shortly after this release. To attend, please dial in from:
    Denmark: +45 3544 5583
    UK: +44 203 194 0544
    US: +1 855 269 2604

    Lasse Snejbjerg
    Tel: +45 2913 6607
    Helle Gudiksen
    Tel: +45 2349 9098


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