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Draka Holding NV (AMS:DRAK) Total Cost Savings of € 15 Million Expected from 2010
The Board of Management of Draka Holding N.V. announces new measures to reduce Draka's cost base still further, sustaining the trend of recent years in line with the Triple S programme. These measures relate to the Energy & Infrastructure Europe division, whose plant in Llanelli (UK) is intended to close, and the Automotive & Aviation division where, in addition to closure of the plant in Vigo (Spain), the plant in Wuppertal (Germany) is to be optimised. Various efficiency improvements are also planned for the Communications Group's plants in Europe, which will reduce the cost base still further.
The works councils and trade unions in the countries concerned will be consulted on the implementation of these plans and the repercussions for the Draka plants affected.
The total annually recurring cost savings resulting from these measures are estimated at € 15 million and will be realised in full in 2010. Already in 2009 the main part of the savings will be made and are expected to come in at around € 10 million. The programme will cost around € 30 million (or € 18 million in cash), of which some € 20 million will be recognised in the second half of 2008. An impairment of property, plant and equipment of € 5.0 million (€ 4.0 million net) was already recognised in the first half of 2008 in respect of the planned closure of the plants in Vigo (Spain) and Llanelli (UK) which was announced earlier this year.
Board of Management Amsterdam, 21 October 2008
Pdf version of the press release Pdf versie van het persbericht
NOTE FOR EDITORS: for more information, contact:
Draka Holding N.V. Michael Bosman - Director Investor Relations +31 20 568 9805; michael.bosman@draka.com
+-------------------------------------------------------------------+ | 2008 & 2009 financial calendar (provisional) | | | |-------------------------------------------------------------------| | | | | Publication of trading update for | Friday, 14 November 2008 | | second half of 2008 | (before start of | | | trading) | |----------------------------------------+--------------------------| | | Wednesday, 25 February | | | 2009 | | Publication of 2008 full-year figures | (before start of | | | trading) | |----------------------------------------+--------------------------| | General Meeting of Shareholders, | | | Hilton Amsterdam | Monday, 20 April 2009, | | | starting at 14:30h | |----------------------------------------+--------------------------| | | | | Publication of trading update for the | Friday, 29 May 2009 | | first half of 2009 | (before | | | start of trading) | |----------------------------------------+--------------------------| | | Thursday, 13 August 2009 | | Publication of 2009 half-year figures | (before start of | | | trading) | |----------------------------------------+--------------------------| | | Thursday, 12 November | | Publication of trading update for the | 2009 | | second half of 2009 | (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. As from 2008, Draka's activities are divided into three Groups: Energy & Infrastructure, Industry & Specialty and Communications.
Within these three Groups, the activities have been split up into divisions. Energy & Infrastructure consists of the divisions Europe, Australasia and Greater China; Industry & Specialty consists of the Automotive & Aviation, Elevator Products, Cableteq USA, Industrial and Wire & Cable Assemblies divisions, while the Communications Group is divided in the divisions Cable Solutions Americas, Cable Solutions EMEA, Mobile Networks and Optical Fiber.
Draka has 68 operating companies in 30 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 revenue and profits. Worldwide the Draka companies have some 9,550 employees. The head office of Draka Holding N.V. is established in Amsterdam. In 2007, Draka generated revenue of € 2.8 billion and a result attributable to shareholders of € 93.0 million.
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 AMX-index (Amsterdam Midkap index) since 4 March 2008. Options on Draka shares have also been traded on the Euronext Amsterdam Derivative Markets since 8 July 2002.
Visit our website: www.draka.com
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