Market update Q3 2021

Strong organic growth in turnover and results in Q3

Financial developments in third quarter

  • Further increase in turnover and results over the third quarter in line with forecast.
  • All three Solution segments contributed to the strong turnover growth of 27.7% compared to the third quarter 2020, with an especially strong recovery in Industrial Solutions.
  • EBITA before one-off income and expenses increased with 68.3%.
  • Order book remained at a high level and slightly increased compared to the previous quarter.
  • ROS continued to improve from 11.6% over H1 2021 to 13.7% over Q3 2021 (Q3 2020: 10.4%).
  • Supply-chain challenges had limited impact on turnover.

Developments per Solution

Telecom Solutions

Turnover increased by 20.1% compared to the third quarter of 2020 and benefited from the high investment priority for fibre networks in Europe. Particularly in France, strong growth was realized compared to the third quarter in 2020. The overcapacity in the Chinese market had a slight negative effect on the added value.

Building Solutions

Turnover increased with 20.4% compared to the third quarter of 2020. Although some areas were still impacted by COVID-19, like Parking, almost all verticals contributed to this growth. Our strong market position in vision technologies for the consumer electronic market fueled the high turnover growth in vision systems for factory automation, inspection of wood, battery production and infra & traffic. In subsea and energy cable systems turnover also increased further and the prospect for new orders continues to improve due to strong demand for alternative energy sources.

Industrial Solutions

Turnover increased with 43.1% compared to the third quarter of 2020, with a strong recovery especially in Tire Building. The production capacity was swiftly scaled up to cope with the high order intake from previous quarters. The order intake in the third quarter of 2021 was much higher than last year underlining the strong recovery in Tire Building, translating in improving results.

Alexander van der Lof, CEO of technology company TKH: “Following our strong recovery over the first half, our third quarter delivered excellent results. The Industrial Solutions showed a strong performance in its Tire Building vertical. This also contributed to a substantial improvement of the ROS to 13.7% in the third quarter. The current supply-chain challenges continued to be well-managed and so far only had a limited effect on TKH’s activities. We expect that the impact may temporarily increase for some activities due to the shortage of components and increasing costs, but our pricing power enables us to pass on most of the price increases. We are excited about the development of our business and will present a new segmentation and new targets at our Capital Markets Day on the 17th of November 2021.”

Capital Markets Day

On 17 November 2021, TKH will organize a Capital Markets Day (‘CMD’). During the CMD we will provide an update on our Strategy & Targets. Furthermore, we will elaborate on our new segment reporting and our sustainability strategy, as well as on current developments in our business segments. The webcast of our CMD can be attended online on our website.

Outlook 2021

The third quarter developed well and in line with our expectations. As communicated on 17 August, TKH foresees a net profit between € 106 million and € 112 million (2020: € 70.3 million) for the full year 2021, barring unforeseen circumstances. This is from continued activities before amortization and one-off income and expenses attributable to shareholders.

The complete press release can be downloaded in PDF

Press release – Market update Q3 2021

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