Earnings Release • May 2, 2007
Earnings Release
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Alexander van der Lof, CEO TKH: "The focus to accelerate turnover growth has borne fruit in the first quarter. Newly developed market positions and innovations have made an important contribution to this. Following the very strong fourth quarter last year, TKH has again had a strong quarter in this first quarter 2007. With that, the developments are in line with the outlook communicated at the presentation of the annual results in March 2007."
Turnover rose by 31.3% in the first quarter. Organic growth came in at 25.3%. The remaining growth was realised by the companies acquired during 2006. Growth in turnover was realised in all three groups (Technical Trading group, Cable group and Machinery group). The most important increases were realised in the Cable group and Machinery group. Especially strong increases were realised in Building Solutions and Industrial Solutions. Within Building Solutions, this was the consequence of a further increased investment level in the construction- and installation sector and the development of new market positions in Europe. The Industrial Solutions segment benefited from healthy growth of industrial activity in Europe and the many innovations introduced by TKH.
Operating result (EBIT) rose by 36.1% in the first quarter to € 12.7 million. The share of sales with lower added value was relatively high in the first quarter. All groups realised an increase in operating result. The Machinery group's operating result showed the highest increase.
Net profit was up 32.9% to € 8.1 million. The tax burden increased slightly to 31.1% from 29.9%, mainly due to an increase in the share of the profit realised in Germany, where the tax burden is higher.
The developments in the first quarter were in line with the outlook communicated at the presentation of the annual results in March 2007.
Haaksbergen, 2 May 2007
Executive Board
| For further information: | J.M.A. (Alexander) van der Lof, Chairman of the Executive Board tel. +31 (0)53 5732901 Internet site: www.tkhgroup.com |
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| Agenda 31 August 2007 22 November 2007 |
Publication of first-half 2007 results Trading update Q3 2007 |
TKH Group NV (TKH) is an internationally operating group of companies that as a solution supplier has specialised in creating and supplying innovative Telecom, Building and Industrial Solutions.
The activities in the form of technologies, know-how, products and added value such as consulting, development, assembly and delivery of systems, form the building blocks for innovative solutions. These activities are concentrated in three groups: the Technical Trading Group, the Cable Group and the Machinery Group.
At TKH it is the solutions that play the central role, not the kind of activity (group).
The Telecom Solutions consist of solutions ranging from basic infrastructure to home networking applications, for both the outdoor and indoor telecom (ICT) -markets.
The Building Solutions comprise solutions ranging from efficient electrical engineering to ICT systems for the health care sector. In this segment TKH concentrates on cable systems and networks, intercom systems, nurse paging systems, access control and electricity distribution.
The Industrial Solutions consist of advanced solutions for production automation, car and truck tyre building systems and industrial applications in the field of speciality cable and cable accessories.
The 37 companies in the TKH Group are active all over the world. Its growth is concentrated on North West and Eastern Europe and Asia. In 2006 TKH secured a turnover of € 686 million with 2,961 employees.
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