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Draka Holding NV (AMS:DRAK) Draka expects an operating result in the range of € 130-135 million and a net result of some € 80-85 million for 2008 (both before exceptionals)
Focus on further reduction of cost base and maximising cash flow
* Operating result excluding non-recurring items[1] expected to be approximately € 130-135 million in 2008 compared with € 145.7 million in 2007
* Result for the year excluding non-recurring items[2] expected to be some € 80-85 million as against € 85.3 million in 2007
* Progress in 2nd half 2008 hampered by effects of financial turmoil; impact particularly noticeable on automotive and construction-related businesses. Increasing demand in optical fiber cable is offset by decline in copper telecom cable. Draka's industrial-market activities still performing as strongly as ever
* Triple S programmes announced earlier this year, which will cost € 30 million, are on track; cost savings estimated at around € 15 million from 2010 onwards, with as much as € 10 million saved in 2009
* Operating working capital as a percentage of revenues expected of 16-18% (2007:16.1%)
* Reduction of net debt of at least € 50 million relative to 1st half 2008, supported by positive cash flow
Amsterdam, 14 November 2008 - This trading update for 2008 has been published by Draka Holding N.V., one of the world's leading cable manufacturers for low-voltage cable, cable for OEMs and communication cable, in advance of the publication of the results for the year on Wednesday, 25 February 2009 (before the start of trading).
Commenting on the results expected for 2008, Sandy Lyons, Chairman and CEO of Draka Holding N.V., said, 'Considering the seriousness of the situation in the financial markets, the consequences of which we have felt in the second half of 2008, we believe Draka has performed relatively well.
As we look ahead, we will closely monitor the potential for continued deterioration in the world economy and we are prepared for any further near term contractions. As we address these shifting market conditions our focus is on our customers, our cost position, and our cash position. To this end, we will remain dedicated to our customer partnerships, continue to optimize our organization, and pursue reductions in our operating costs and working capital.
Our priority is on strengthening our financial position to ensure we remain in a leading position both during and following the current cycle. Given our clear strategic objectives, the strong foundation of the company, our commitment to our customers, and our sound operational base, we remain confident in Draka's position and future development.'
[1] The gross non-recurring items in 2008 will amount to around € 25 million negative. No non-recurring items were reported in 2007. [2] The net non-recurring items in 2008 will amount to around € 12.8 million negative. In 2007, the figure was € 7.7 million positive.
Pdf version of the press release
Pdf versie van het persbericht
NOTE FOR EDITORS: for more information, please contact:
Draka Holding N.V.: Michael Bosman - Director Investor Relations +31 20 568 98 05; michael.bosman@draka.com
Financial calendar 2009 (provisional)
Wednesday, 25 February Publication of 2008 full-year figures 2009 (before start of trading) General Meeting of Shareholders, Hilton Amsterdam Monday, 20 April 2009, starting at 14:30h Publication of trading update for the first Friday, 29 May 2009 half of 2009 (before start of trading) Thursday, 13 August 2009 Publication of 2009 half-year figures (before start of trading) Publication of trading update for the Thursday, 12 November second half of 2009 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.
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