TAKKT Adjusts Forecast for the 2017 Financial Year
TAKKT AG had previously forecast organic (adjusted for currency and acquisition effects) sales growth of between two and five percent for the 2017 financial year. The EBITDA margin was expected to come in at the middle of the target corridor of 12 to 15 percent of sales.
In the first nine months, organic growth in the Group came to 0.5 percent. While the TAKKT EUROPE segment met growth expectations and recorded organic growth of 2.8 percent, business development in the TAKKT AMERICA segment was weaker than anticipated at minus 1.7 percent. For one, all US divisions reported a significant drop in order intake in Florida and Texas in September as a result of the hurricanes. At OEG on the other hand, the expiration of a framework agreement in the middle of the year with a large federal customer has, so far, not been renewed. In addition, business development at the MEG remained weak, and the improved performance that was anticipated has not yet materialized to the degree expected.
TAKKT expects that the organic performance in the fourth quarter will not be enough for the figures to reach the previously forecast target corridor of 2 to 5 percent. The TAKKT Management Board anticipates organic sales growth of 0 to 1 percent for the 2017 financial year. At the same time, the Board continues to expect the EBITDA-margin to come in at the middle of the target corridor. Currently, the EBITDA margin is anticipated to be between 13.2 and 13.5 percent.