Draka expects an operating result of around ¤ 145 million and
net income of about ¤ 85 million in 2007
* Strong performance has been sustained, driven by favourable
market conditions, cost savings and strategy implementation
* Further growth in revenues and result in almost all divisions
* Stop, Swap & Share programmes on track; cost savings expected of
around ¤ 8 million
* Forecast operating result of around ¤ 145 million, an increase of
60% compared with 2006 (¤ 90.6 million[1])
* Net income expected to increase by more than 85% to around ¤ 85
million (2006: ¤ 45.4 million[1])
* Operating working capital as a percentage of revenues expected to
turn out slightly above 2006 level (16.6%), but below previous
forecast of a bandwidth of 18-20%
Draka expects for 2007 an operating result of around ¤ 145 million
(2006: ¤ 90.6 million[1]) and net income of about ¤ 85 million (2006:
¤ 45.4 million[1]). This represents a slight improvement on the
previous forecast for 2007 of an operating result of at least ¤ 141
million and net income of at least ¤ 80 million.
Draka expects 2007 to be the third consecutive year of substantially
improving results. The anticipated sharp growth in the results is the
product of sustained and healthy volume growth, cost-control
programmes and further improvement in the product mix. Helped by the
favourable macroeconomic conditions, most notably in Europe, Draka
will achieve volume growth in all segments of its business:
low-voltage cable, special-purpose cable and communication cable.
Although raw material prices (copper and polymers) have remained
highly volatile, the impact on margins is expected to be limited.
The contribution of cost-control programmes is expected to amount to
around ¤ 8 million in 2007, in line with Draka's earlier forecast.
The Stop, Swap & Share (Triple S) programme implemented in Draka
Comteq's Cable Solutions EMEA division in 2006, will generate the
highest contribution of around ¤ 5 million, of which ¤ 4 million in
the second half of 2007. This phase of the Triple S programme is
anticipated to be finalised in 2008, which should result in
additional annual cost savings of about ¤ 7 million. The
corresponding Triple S programme at Draka Cableteq's Low-Voltage
Cable division will generate cost savings of approximately ¤ 3
million in 2007 (¤ 1 million in the second half), in line with the
forecast.
[1] Excluding non-recurring charges of ¤ 32.9 million in 2006.
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 Corporate Communications +31 20
568 9805
Financial calendar 2007 & 2008 (provisional)
Friday, 7 March 2008
Publication of 2007 full-year figures (before start of trading)
General Meeting of Shareholders, Sheraton
Amsterdam Thursday, 24 April 2008,
Airport Hotel, Schiphol starting at 14:30h
Publication of trading update for the Wednesday, 11 June 2008
first half of 2008 (before start of trading)
Monday, 1 September 2008
Publication of 2008 half-year figures (before start of trading)
Publication of trading update for the Thursday, 13 November 2008
second half of 2008 (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
