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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
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