wiredinUSA December 2012

INDEX

Disappointing results for Danish cable maker

the US and China where it has gone weak,” said Jesper Christensen, an analyst at Alm Brand. The company’s NKT Cables division, one of Europe’s biggest power cable suppliers, saw flat organic sales growth in the third quarter as it faced intense competition in almost all product areas and weak demand in China’s railway industry. Infrastructure for the railway and automotive sectors account for about 20 percent of group revenues. NKT said organic railway revenue in the third quarter had halved from the previous year. China has said railway investment will resume, but at reduced levels compared with 2010.

Cable manufacturer NKT Holding has warned that sales and profits this year will not meet its forecasts as customers in Europe and the United States hold back on orders. NKT has been hit by the downturn in Europe and slow equipment sales to China, where the government last year put a temporary freeze on high-speed railway construction. The company said it expects revenue to fall two to three percent in 2012, when its previous outlook was for flat sales. “We are experiencing restraint and low demand in a number of our markets,” CEO Thomas Hofman-Bang told Reuters. “It is a disappointing quarter on revenue - they have been hit hard on volumes in almost all divisions, and it is particularly

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wiredInUSA - December 2012

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