Wednesday, August 28, 2013
In the first half year, DLH continued to experience difficult European market conditions. A significantly lower level of activity in the Group’s European main markets means that turnover for the first six months of the year totals DKK 1,135 million ($202 million) and thus lies 12% below the same period last year. The 2% fall in turnover in 2Q was significantly more moderate than the 22%, which was seen in 1Q.
For the half year, turnover in the inventory- based business in Europe was 23% below last year’s level in that both the difficult market conditions and a long winter period impacted on market activity.
The overseas markets in the Global Sales business area increased turnover by 16%. Thus turnover amounted to DKK 429 million ($76.6 million).
Overhead costs for the first six months of the year were, as planned, reduced by approximately DKK 19 million ($3.4 million) compared to last year as a consequence of the effect of implemented rationalisation measures.
EBIT was minus DKK 11 million ($2 million) for the first six months of the year against DKK 10 million ($1.8 million) for the same period last year. The Group’s EBIT margin for the period totals minus 1% against 0.7% last year. The negative trend in EBIT is primarily due to the lower turnover and the lower gross margin.
The Group’s discontinued operations posted a loss of DKK 1 million ($178,571) against a loss for the same period last year of DKK 13 million ($2.3 million).
“After a long winter, we had been hoping for a change in activity level in 2Q. Our Global Sales business is growing well, but is unable to compensate for a very weak European market. We now expect that the difficult and unpredictable market conditions in Europe will continue for the rest of 2013. Therefore, we will continue to focus on tight cost and balance sheet control,” says CEO Kent Arentoft.
Tags: The Group’s EBIT margin