Cable company NKT falls after Q2 miss amid market slowdown
16/08/2023 09:00
** Shares in NKT NKT.CO slide 4% to the bottom of STOXX
600 .STOXX index after the Danish cable solution provider
reported second quarter sales, profit below consensus, citing a
slowdown in the construction, offshore repair market
** NKT reports adjusted EBITDA rising 40% q/q to 58.0
million euros ($63.32 million), but below 61.2 million seen by
analysts
** Its sales came at 468 million euros, against the estimate
of 498 million
** The company notes lower activity within the offshore
repair segment with only limited work conducted in Q2, which hit
results in the service and activities unit
** The application business was in turn affected by the
slowdown in construction sentiment, which the company expects to
continue in H2
** NKT also warns of margin fluctuations in the solution
unit, depending on the phasing of projects execution
** The backlog in the unit reached a record level, but J.P.
Morgan warns the phasing of the backlog indicates yearly
revenues to be somewhat lower than expected by the company
** Though on Tuesday NKT raised its full year guidance, the
broker notes the consensus had already expected the number at
241 million euros, within the new range
($1 = 0.9160 euros)
(Reporting by Boleslaw Lasocki)
((boleslaw.lasocki@thomsonreuters.com))