Brief: Nilfisk Holding Lowers Full-Year Guidance For 2019

Nilfisk Holding A/S

16/10/2019 07:38

Oct 16 (Reuters) - Nilfisk Holding A/S  NLFSK.CO :
    * REG-PRELIMINARY RESULTS FOR Q3 2019 AND ADJUSTED FULL-YEAR
GUIDANCE FOR 2019
    * PRELIMINARY FINANCIAL RESULTS FOR Q3 2019 SHOW REVENUES OF
APPROXIMATELY 228 MEUR
    * PRELIMINARY EBITDA MARGIN BEFORE SPECIAL ITEMS FOR Q3 2019
IS
10.2% BASED ON A GROSS MARGIN OF 41.5%
    * ADJUSTING EXPECTATIONS TO FULL-YEAR ORGANIC GROWTH IN
BRANDED
PROFESSIONAL BUSINESS TO APPROXIMATELY -3.0%
    * LOWER REVENUE IMPACTS GROSS MARGIN DUE TO LOWER CAPACITY
UTILIZATION IN OUR PRODUCTION FACILITIES
    * IN GERMANY EXPERIENCES SLOWDOWN IN MARKET WITH A SPILLOVER
EFFECT TO NEIGHBORING COUNTRIES CLOSELY LINKED TO GERMAN ECONOMY
    * FULL-YEAR GUIDANCE FOR BRANDED PROFESSIONAL BUSINESS: WE
ARE
ADJUSTING OUR EXPECTATIONS TO FULL-YEAR ORGANIC GROWTH IN
BRANDED PROFESSIONAL BUSINESS TO APPROXIMATELY -3.0%
(PREVIOUSLY: "FLAT")
    * LOWERS FULL-YEAR GUIDANCE ON EBITDA MARGIN BEFORE SPECIAL
ITEMS
AND EXCLUDING IMPACT FROM IFRS 16 TO APPROXIMATELY 9.5%
(PREVIOUSLY 11.0% TO 11.5%)
    * IN AMERICAS, GROWTH IS BELOW EXPECTATIONS DRIVEN BY LOWER
THAN
EXPECTED GROWTH IN US INDUSTRIAL BUSINESS
    * SEES A SIGNIFICANTLY MORE CAUTIOUS BEHAVIOR FROM PRIVATE
LABEL
CUSTOMERS.
    * EXPECTS ORGANIC GROWTH IN PRIVATE LABEL BUSINESS OF -10%
TO -15%
    * WILL CONTINUE TO REDUCE COSTS AND OPTIMIZE OPERATIONS,
WHICH
WILL ENABLE MARGIN EXPANSION.
    * ASSUMING A CONTINUATION OF CURRENT ECONOMIC ENVIRONMENT IT
IS
UNLIKELY THAT MID-TERM TARGETS CAN BE MET IN 2021.
    * EBITDA MARGIN TARGET OF 13-15% AND ORGANIC GROWTH TARGET
OF 3-5%
P.A. REMAINS.
    * WE WERE NOT ABLE TO DELIVER GROWTH IN AMERICAS DURING Q3

Source text for Eikon:  ID:nGNEtBgr9 
Further company coverage:  NLFSK.CO 

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