NKT Declines as Nexans Reports Cable Weakness: Copenhagen Mover
NKT Holding A/S (NKT), the Danish maker of cables, snapped a three-day advance in Copenhagen trading after French peer Nexans S.A. reported a loss and said European demand is shrinking.
NKT fell as much as 1.1 percent to 236.50 kroner and also traded at that price at 9:19 a.m. in the Danish capital. Trading volume was 2.1 percent of the three-month daily average. The stock underperformed the Nasdaq OMX Copenhagen all-share index, which gained 0.1 percent.
Nexans’s stock tumbled as much as 9.9 percent in Paris today after the company reported a first-half operating loss of 78 million euros ($103 million), hurt by impairments and restructuring costs. The Paris-based cable producer said the situation in the European building market “remains difficult” as sales in the region contracted by 9.5 percent in the first six months of 2013.
“Market conditions for cables in Europe are still challenging, which doesn’t bode well for NKT,” Nordea Private Banking, a unit of Stockholm-based Nordea Bank AB, said in a note today. Nordea has a hold recommendation on the NKT stock.
NKT, which also owns a unit that produces industrial vacuum cleaners, is scheduled to report second-quarter earnings on Aug. 21. The Broendby, Denmark-based company has missed analyst net income estimates in 11 of the last 12 quarters, according to data compiled by Bloomberg.
To contact the reporter on this story: Christian Wienberg in Copenhagen at firstname.lastname@example.org
To contact the editor responsible for this story: Tasneem Brogger at email@example.com