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UPDATE 1-Denmark's NKT earnings hit by writedown, factory problem
March 1, 2012 / 9:36 AM / 6 years ago

UPDATE 1-Denmark's NKT earnings hit by writedown, factory problem

(Adds details, quotes)

* 2011 EBIT 445 mln DKK vs 524 mln forecast

* Revenue 15.60 bln DKK vs 15.67 bln crowns forecast

* Says 2012 organic revenue to grow about 5 to 10 pct

* Shares rise 0.9 pct, outperforming wider market

COPENHAGEN, March 1 (Reuters) - Danish industrial group NKT Holding A/S posted a fall in 2011 profit and missed consensus forecasts, hurt by an impairment charge in the Czech Republic and production problems in Germany.

The group said production at its troubled Cologne cable factory would reach full capacity this year, and forecast organic revenue growth of about 5 to 10 percent.

Earnings before interest and tax (EBIT) fell to 445 million crowns for the year from 480 million a year earlier, missing analysts’ average forecast of 524 million.

The group said earnings had been hit by a 61 million crown impairment for its NKT Cables unit, relating to the closure of production facilities in the Czech Republic as well as a 7 million crown cost for project development in its Nilfisk-Advance unit.

The maker of professional cleaning machines and power cables said revenue rose to 15.60 billion crowns from 14.45 billion a year earlier, in line with a 15.67 billion average estimate in the Reuters poll.

“We have not reached full production capacity (at the Cologne factory), but we are well under way,” Chief Executive Thomas Hofman-Bang told Reuters. “We will reach mid-2012 until we are at that level.”

The group said it expected operating earnings before interest, tax, depreciation and amortisation (EBITDA) in a range of 1.05 billion to 1.25 billion crowns this year.

Shares in NKT rose 0.9 percent to 240.40 crowns by 0834 GMT, outperforming a 0.6 percent fall in the Copenhagen stock exchange’s benchmark index. (Reporting by Mette Fraende; Editing by David Holmes)

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