Draka expects a sharply higher operating result and net income
to more than double in first half of 2007
(both excluding non-recurring items)
* Excellent performance, driven by favourable market conditions,
cost savings and implementation of its strategy
* Sustained growth in revenues and result by all divisions
* Stop, Swap & Share programmes well on schedule
* Operating result expected of at least ¤ 68 million (H1 2006: ¤
39.1 million)
* Net income expected to more than double to at least ¤ 38 million
(H1 2006: ¤ 17.1 million)
* Operating working capital as a percentage of revenues expected to
fall within an 18-20% bandwidth, compared with 20.0% in the first
half of 2006
* On the basis of these projections, Draka is well ahead of
schedule to reach its target for 2007 of an operating result of
¤ 115 million and working capital as a percentage of revenues of
under 20%
* Barring unforeseen circumstances, Draka expects the favourable
market conditions to continue in the second half of 2007
Amsterdam, 29 June 2007 - This trading update for the first half of
2007 is issued by Draka Holding N.V., one of the world's leading
producers of low-voltage cable, cable for OEMs and communication
cable, in advance of the publication of the half-year figures on
Friday, 31 August 2007 (before start of trading).
For the first half of 2007, Draka expects an operating result of at
least ¤ 68 million (first half 2006: ¤ 39.1 million) and a net income
of at least ¤ 38 million (first half 2006: ¤ 17.1 million), both
excluding non-recurring items [1].
These excellent results are driven by sustained healthy volume
growth, cost-control programmes and a further improvement in the
product mix. The volume growth is being driven by favourable
macro-economic conditions, especially in Europe. Draka generates
volume growth in all segments: low-voltage cable, special-purpose
cable and communication cable. Prices for raw materials (copper and
polymers) are still highly volatile. Thanks to the actions taken by
Draka, this price volatility is expected to have only a limited
effect on margins in the first half of 2007.
The contribution by cost-savings to the growth in the result is
expected to amount to some ¤ 3 million for the first six months of
2007. The Stop, Swap & Share (or the 'Triple S') programme launched
at Draka Comteq's Cable Solutions EMEA division in the summer of 2006
is well on schedule. With savings of around ¤ 1 million in the first
half of the year, the programme is expected to meet its target of
approximately ¤ 5 million in 2007. The savings yielded by the similar
Triple S programme at Draka Cableteq's Low-Voltage Cable division in
the first half of 2007 will amount to around ¤ 2 million.
[1] Non-recurring items in the first half of 2006 amounted to ¤ 5
million negative.
Pdf version of the press release
NOTE FOR EDITORS: for more information, contact:
Draka Holding N.V.:
Michael Bosman - Director Corporate Communications +31 20 568
9805
2007 financial calendar (provisional)
Publication of 2007 half-year figures Friday, 31 August 2007 (before
start of trading)
Publication of trading update for Monday, 26 November 2007
second half of 2007 (before start of trading)
Company profile
Draka Holding N.V. ('Draka') is the holding company of a number of
operating companies which engage worldwide in the development,
production and sale of cable and cable systems. Draka's activities
are divided into two groups: Draka Cableteq, which is responsible for
the low-voltage and special-purpose cable activities, and Draka
Comteq, which handles the communication cable activities.
Within these two groups, the activities have been split up into
divisions. Draka Cableteq consists of the Elevator Products,
Low-Voltage Cable, Marine, Oil & Gas, Mobile Network Cable, Rubber
Cable and Transport divisions, while Draka Comteq is active in the
Telecommunication Cable, Data Communication Cable and Optical Fibre
market segments.
Draka has 67 operating companies in 29 countries throughout Europe,
North and South America, Asia and Australia. The Company has a flat,
decentralised organisational structure with short lines of
communication. The divisions enjoy a large measure of autonomy and
are responsible for their revenues and profits. Worldwide the Draka
companies have some 9,145 employees. The head office of Draka Holding
N.V. is established in Amsterdam. In 2006, Draka generated revenues
of ¤ 2.5 billion and a net income of ¤ 45.4 million (excluding
non-recurring items).
Draka Holding N.V. ordinary shares and subordinated convertible bonds
are listed on Euronext Amsterdam. The Company was included in the
Next150 index in 2001 and the AScX-index (Amsterdam Small Cap index)
since 2 March 2005. Options on Draka shares have also been traded on
the Euronext Amsterdam Derivative Markets since 8 July 2002.
Visit our website: www.draka.com
