DRAKA HOLDING : N.V.: Provisional 2010 Full-Year Figures[1]

Operating result[2] approx. ? 85 million and net result[2] approx. ? 60 million

(? million, unless stated otherwise)	Provisional 2010 full- year figures	2009	Trading update November 2010
Revenues	2,428	2,048.3	-
Operating result, excluding non-recurring items[2]	85	75.3	80-85
Operating result	29	8.8	35-40
Net result for the year, excluding non-recurring items[2],[3]	60	48.3	50-55
Net result for the year[3]	5	(18.2)	9-14
Net debt	281	295.0	approx. 295
Working capital ratio	12.9%	13.7%	14-15%
Cash flow from operating activities	58	189.2	>45% lower

 

These provisional 2010 full-year figures are published by Draka Holding N.V., one of the world's leading producersof low-voltage cable, special-purpose cable and communication cable. These provisional full-year figures are published in advance of Draka's Extraordinary General Shareholders Meeting, which will be held on Wednesday, 26 January 2011, and publication of the definitive full-year figures on Tuesday, 15 February 2011 (before start of trading).

• Market conditions improved compared with H1 2010. Recovery strongest in communication cable and industrial cable activities. European construction markets remained stable overall, with a slowing decline in the Benelux offset by modest growth in the Scandinavian countries. Pressure on prices has not increased, pressure on margins from higher raw-material prices (polymers) has eased.
• Revenues around 19% higher, driven mainly by higher copper price. Volume growth of around 3.5%, reflecting rising demand for high-end special-purpose cables and optical-fiber telecommunication cables.
• Operating result[2] around 13% higher at ? 85 million. All of this increase was generated in H2 2010, driven by volume growth and cost savings. All three Draka groups contributed to this improvement.
• Non-recurring items approximately ? 57 million negative, mainly due to implementation of cost-reduction programmes. This figure also includes non-recurring costs of more than ? 7 million in consultancy fees relating to intended offers on Draka.
• Net result for the year[2] approximately ? 60 million, compared with ? 48.3 million in 2009. The improvement reflected the higher operating result, lower financing costs and a higher contribution from equity-accounted investees.
• Cost-reduction programmes on schedule, cost base lowered by around ? 30 million in 2010.
• Operating working capital as a percentage of revenues amounted to 12.9% compared with 13.7% in 2009. Net debt approximately ? 281 million, about 5% lower than at year-end 2009 (? 295 million). Increase in working capital due to volume growth, substantially higher copper prices and exchange-rate effects compensated by free cash flow.

 

[1] Unaudited figures.

[2] Excluding non-recurring items. Gross non-recurring items in 2010 are expected to be around ? 57 million negative (about ? 56 million net). Non-recurring items in 2009 amounted to ? 66.5 million negative (gross and net).

[3] Attributable to equity holders of the company.

 

Pdf version of the press release:
http://hugin.info/130732/R/1481295/416581.pdf

Pdf versie van het persbericht:
http://hugin.info/130732/R/1481295/416582.pdf

 

NOTE FOR EDITORS: for more information, please contact:

Draka Holding N.V.:

Michael Bosman - Director Investor Relations      [phone]; [e-mail]:
mailto:[e-mail]

 

Cautionary note regarding forward-looking statements

This announcement contains forward-looking statements. Forward-looking statements are statements that are not based on historical fact, including statements about our beliefs and expectations. Any statement in this announcement that expresses or implies our intentions, beliefs, expectations or predictions (and the assumptions underlying them) is a forward-looking statement. Such statements are based on plans, estimates and projections as currently available to the management of Draka. Forward-looking statements therefore speak only as of the date they are made and we assume no obligation to publicly update any of them in the light of new information or future events.

Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual future results to differ materially from those expressed or implied in any forward-looking statement. Such factors include but are not limited to conditions on the markets in Europe, the United States and elsewhere from which we derive a substantial portion of our revenue, potential defaults on the part of borrowers or trading counterparties, the implementation of our restructuring programme including the envisaged reduction in headcount and the reliability of our risk management policies, procedures and methods. For more information on these and other factors, please refer to our annual report. The forward-looking statements contained in this announcement are made as of the date hereof and the companies assume no obligation to update any forward-looking statement contained in this announcement. 

 

2011 Financial calendar (provisional)
Extraordinary General Shareholders Meeting, Holiday Inn Amsterdam	Wednesday 26 January 2011 Start at 14:00h
Publication of 2010 full-year figures	Tuesday 15 February 2011 (before start of trading)
General Meeting of Shareholders, Holiday Inn Amsterdam	Monday 9 May 2011 Start at 14.30h
Publication of trading update for the first half of 2011	Wednesday 18 May 2011 (before start of trading)
Publication of 2011 half-year figures	Thursday 4 August 2011 (before start of trading)
Publication of trading update for the second half of 2011	Tuesday 15 November 2011 (before start of trading)

 

Company profile

Draka Holding N.V. ('Draka') is the holding company of a number of operating companies that are active worldwide in the development, production and sale of cable and cable systems. Draka's activities are divided into three groups: Energy & Infrastructure, Industry & Specialty and Communications.

Within these three groups, the activities are organised into divisions. Energy & Infrastructure consists of the Europe and Asia-Pacific divisions; Industry & Specialty consists of the Aerospace, Automotive, Elevator, Engineered Specialties, Offshore and Renewable Energy divisions and the Communications Group comprises the Telecom Solutions, Multimedia and Specials, Americas and Optical Fiber divisions.

Draka has 68 operating companies in 31 countries throughout Europe, North and South America, Asia and Australia. Worldwide, the Draka companies employ some 9,400 people. Draka Holding N.V.'s head office is in Amsterdam. In 2009, Draka reported revenue of ? 2.0 billion and net income of ? 48.3 million (excluding non-recurring items).

Draka Holding N.V. ordinary shares are listed on NYSE Euronext Amsterdam. The company is included in the Next150 index and the AMX index (Amsterdam Midkap index). Options on Draka shares are also traded on the NYSE Euronext Amsterdam Derivative Markets.

 

More information on Draka Holding N.V. can be found at www.draka.com:
http://www.draka.com/.

 

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Source: Draka Holding NV via Thomson Reuters ONE

HUG#1481295

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