In Q3 2010, Dantherm continued the positive trends from Q2, realising a higher
operating profit than for the first two quarters of 2010. Focus remains on
improving earnings and implementing the adopted growth strategy.
Today, the Board of Directors of Dantherm A/S has adopted the company's
unaudited interim report for the period 1 January to 30 September 2010.
Developments have been as follows:
Earnings improved in Q3 2010
Revenue of DKK 110.3m was generated in Q3 2010, which is 12% higher than for
the same period in 2009. Revenue for the first three quarters of the year
totalled DKK 334.9m against DKK 317.0m in the first three quarters of 2009.
The group posted an operating profit (EBIT) in Q3 of DKK 3.8m against a loss of
DKK 3.7m in the same period in 2009. For Q1-Q3 2010, an operating profit of DKK
4.4m was returned against a loss of DKK 26.0m in the first nine months of 2009.
Improved contribution ratios and lower costs following the restructurings
implemented are the major reasons for the improved operating results.
The ownership share of Dantherm Power impacted results negatively by DKK 15.8m
in Q1-Q3 2010.
For the first nine months of 2010, discontinuing operations contributed a net
profit of DKK 0.7m. As announced earlier, the Filtration activities and
Danamics ApS have been divested. Work is still going into establishing a new
ownership structure for T&O Stelectric.
Dantherm's share of the results after tax and discontinuing activities for Q3
2010 amounts to a loss of DKK 11.2m against a loss for the same period last
year of DKK 25.6m. For the first three quarters of 2010, Dantherm's share of
the results is a loss of DKK 29.1m against a loss of DKK 111.9m for the first
nine months of 2009.
Improved equity ratio
The proceeds from the divestment of the Dantherm Filtration activities have
been calculated and recognised in Q3 2010. As announced in company announcement
no. 17/2010, the most important activities in the French company Dantherm
Filtration SAS were divested in Q3 2010. The full effect of the divestment of
the Filtration activities has been recognised and has resulted in an improved
equity ratio and a marked reduction in debt relative to the end of 2009.
The invested capital has been reduced from DKK 626.2m at the end of 2009 to DKK
347.1m as at 30 September 2010, while the equity ratio is up from 16.8% to
28.2%.
Consolidated net interest-bearing debt has fallen from DKK 459.2m at the end of
2009 to DKK 206.6m as at 30 September 2010, including finance lease commitments
and mortgage debt of 129.3m.
Outlook for 2010
As announced earlier, the Dantherm group expects revenue for 2010 to be in the
region of DKK 500m with a positive operating profit (EBIT) based on a barely
rising market.
Any enquiries concerning this announcement can be directed to President & CEO
Torben Duer on tel. +45 99 14 90 14.
