Draka optimistic about first half 2008 results

Draka expects an operating result of approximately € 75 million (H1 2007: € 70.5 million) and net income of approximately € 45 million (H1 2007: € 39.6 million), both excluding non-recurring items1.

Including non-recurring items, net income will be around 30% higher, or around € 51 million. This result includes a non-recurring net tax benefit of approximately € 6 million. The provision for the closure of the plant in Vigo (Spain), which was announced earlier this year, is not included in this forecast and will be announced at the time of publication of the half-year figures.The sound underlying performance is the product of sustained volume growth, operational improvements, cost-saving programmes and further improvements in the product mix. The volume growth will be driven by almost all of Draka’s activities except for the Automotive & Aviation division (Industry & Specialty Group). Although the prices of raw materials (copper and polymers) are still volatile, the effect on margins is expected to be modest. On the other hand, adverse movements in certain currencies (especially the US dollar and sterling) relative to the euro are expected to have a 10% negative effect on Draka’s operating result.