Wednesday
07.24.2019
11:27 AM
Login form
Search
Calendar
«  February 2013  »
SuMoTuWeThFrSa
     12
3456789
10111213141516
17181920212223
2425262728
Entries archive

Africa Live News

Main » 2013 » February » 28 » General Cable Reports Fourth Quarter Results
1:16 PM
General Cable Reports Fourth Quarter Results

HIGHLAND HEIGHTS, Ky. - Thursday, February 28th 2013 [ME NewsWire]

(BUSINESS WIRE/ME NewsWire)-- General Cable Corporation(NYSE: BGC), one of the most globally diversified industrial companies, reported today results for the fourth quarter ended December 31, 2012. The Company’s businesses in North America and Rest of World (ROW) finished the year with a positive operating performance in the fourth quarter resulting in consolidated adjusted operating income of $48.2 million, excluding certain items. Alcan Cable North America, Prestolite and Procables (Colombia) also contributed meaningfully in the fourth quarter, exceeding management’s expectations. Adjusted earnings per share for the fourth quarter of 2012 were $0.28, excluding certain items. For the fourth quarter, reported operating income was $5.5 million and reported loss per share was $0.35. A reconciliation of adjusted earnings per share to reported loss per share and adjusted operating income to reported operating income is included on page 4 of this press release.

Highlights

  • Generated adjusted operating income of $48.2 million as North America and ROW finished the year with a positive operating performance despite a challenging environment and regional leadership transition in ROW
  • Volume as measured in metal pounds sold for General Cable’s legacy aerial transmission business in North America established an all-time quarterly high in the fourth quarter and established a new annual high in 2012
  • Generated reported operating cash flow of $206.4 million during the fourth quarter of 2012 and $288.6 million for the full year 2012
  • Completed the acquisition of Alcan Cable China on December 3, 2012 which brings an established sales infrastructure and premium brand with a strong reputation in the Chinese market; Alcan Cable China is expected to generate annual revenue in the range of $80 to $100 million
  • Completed the acquisition of Prestolite Wire, LLC on November 2, 2012 which brings a broad range of wire and cable products serving predominately transportation original equipment manufacturers (OEMs) and distributors; Prestolite is expected to generate annual revenue in the range of $170 to $200 million
  • Transitioned regional leadership in ROW; Gregory J. Lampert assumed responsibility for all the Company’s operations in the Americas, which includes Canada, the United States, Mexico, the Caribbean as well as Central/South America; Peter A. Campbell was promoted to Executive Vice President and Chief Executive Officer of the Asia Pacific region which includes businesses principally in Australia, China, Fiji, India, New Zealand, the Philippines, and Thailand as well as investments in Oman and Pakistan

Fourth Quarter Results

Net sales for the fourth quarter of 2012 were $1,603.1 million, an increase of $86.7 million, or 6%, compared to the third quarter of 2012 on a metal-adjusted basis. Volume based on metal pounds sold increased 17% in the fourth quarter of 2012 compared to the third quarter of 2012 principally due to the impact of acquisitions and ongoing strength in North American metal-intensive aerial transmission product shipments. Excluding metal pounds attributable to acquisitions, global unit volume declined 4% in the fourth quarter of 2012 as compared to the third quarter principally due to seasonal declines. In addition to typical seasonal trends, OEM rod mill sales in ROW normalized in the fourth quarter following the strong demand experienced in the third quarter.

Adjusted operating income in the fourth quarter of 2012 of $48.2 million reflects seasonally lower results as compared to the third quarter and the absorption of $12 million of expenses related to the revised estimated profitability of certain submarine turnkey projects. Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, "Adjusted operating results in our base businesses in North America and ROW for the fourth quarter were broadly ahead of our expectations despite the challenging global operating environment and the transition of regional leadership in ROW. Strength in Asia Pacific driven by construction and electrical infrastructure spending; housing related utility and construction product shipments in the U.S.; and strong aerial transmission demand in North America helped partially offset normal seasonal trends in these businesses. We are pleased with the fast start of our recent acquisitions, which generated results that were ahead of our expectations for the fourth quarter. We continue to make excellent progress integrating these acquisitions and remain focused on capturing manufacturing, logistics and purchasing synergies. In Europe and Mediterranean, our adjusted operating results were generally weaker than expected due to the ongoing recessionary conditions in Iberia and Europe generally, which were exacerbated in the fourth quarter by the absorption of expenses related to the revised estimated profitability of certain submarine turnkey projects. Our actions taken over the last several years to reduce our ongoing cost base as well as our pan-European go-to-market strategy which is providing better market coverage, improved logistics and plant optimization should help to offset some of the continuing weakness. We expect Spain to bottom in 2013.”

In North America, volume was consistent with management’s expectations for most businesses as seasonal demand patterns in the Company’s utility businesses coupled with slower industrial and data product shipments broadly reduced demand for wire and cable products during the fourth quarter of 2012 as compared to the third quarter of 2012. Demand for electrical infrastructure products, particularly specialty cables tied to natural resource extraction, marine and transit applications, remains relatively stable year over year. Unit volume for metal-intensive aerial transmission products reached an all-time quarterly high in the fourth quarter as well as for the full year.

In ROW, volume was slightly below management’s expectation for the fourth quarter. Demand in Asia Pacific was more than offset by traditional seasonal declines and normalized order rates in Central and South America following the strong demand experienced in the third quarter, particularly in Venezuela and Brazil. Copper and aluminum rod shipments also declined in the fourth quarter following a strong third quarter, which benefitted from regional supply constraint issues.

In Europe and Mediterranean, volume was consistent with management’s expectations for the fourth quarter. Stronger electric utility product shipments in France and the Mediterranean coupled with the supply of specialty cables including offshore oil and gas products more than offset the ongoing weakness in the domestic markets in Spain. The Company’s backlog was around $650 million for submarine and land-based turnkey cable projects at the end of the fourth quarter.

Other expense was $5.5 million in the fourth quarter of 2012 which primarily consists of $4.5 million of mark to market losses on derivative instruments accounted for as economic hedges which are used to manage currency and commodity risk on the Company’s project business globally and $1.0 million of foreign currency transaction losses.

To view the full report and tables please click here


Contacts

General Cable Corporation

Len Texter, Director, Investor Relations, 859-572-8684


Permalink: http://www.me-newswire.net/news/6987/en

Views: 98 | Added by: africa-live | Rating: 0.0/0
Total comments: 0
Name *:
Email *:
Code *: