COPENHAGEN: Danish industrial group NKT Holding posted a surprise drop in second-quarter core profits against market expectations, hit by poor performance in its cables unit, and downgraded its full-year 2011 earnings guidance.
Earnings before interest, tax, depreciation and amortisation (EBITDA) fell to 210 million Danish crowns ($40.5 million) in April-June from 258 million in the second quarter last year.
The result missed all forecasts of from 272 million to 379 million crowns in a Reuters survey of analysts, whose average estimate had been for a rise to 346 million.
NKT Holding cut its 2011 EBITDA forecast to a range of about 1.0 billion to 1.1 billion crowns from earlier guidance for about 1.2 billion due to unsatisfactory earnings in its NKT Cables division.
"The adjustment primarily relates to the newly built submarine and high voltage cable factory in Cologne where commissioning has proved more complex than first anticipated," said NKT Holding A/S, which makes power cables and cleaning equipment.
"The rest of NKT Cables' business segments, as well as the companies Nilfisk-Advance, NKT Flexibles and Photonics Group, are all developing satisfactory as expected," NKT said.
The group maintained its guidance for full-year organic revenue growth of 5 percent.
Copyright Reuters, 2011
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