Transmission, Distribution and Operators"
business. The Building and LAN businesses have been grouped together to
form the "Distributors and Installers" business. The "Industry"
segment remains unchanged while the "Others" segment now also
includes Electrical Wires2).
The market trends observed in 2011 have carried forward into the first
months of 2012. The "Distributors and Installers" business has gained
almost 9% compared with the first quarter 2011.
For Industry, the increase is 6%, driven by the automotive and oil & gas
activities.
The "Transmission, Distribution and Operators" business has contracted
by 6%. It results from the joint effect of a strong growth in the
Distribution (Medium Voltage) and Operators (+7%) segments and of a
decrease in the Transmission segment (High Voltage). The latter is
mainly attributable to a slower than expected production rate of
submarine high voltage cables. In underground transmission, the
political situation in Libya does not allow yet resumption of local
installation works which would have been able to compensate partly for
the situation in submarine. These elements will weigh on the
profitability of the activity and of the Group at June 30, 2012.
"Others" activity (formerly Electrical Wires) has contracted by nearly
5%, with the Group internal sales favored at the expense of external
clients.
At the end of March 2012, net debt came to 566 million euros compared
with 222 million euros at the end of December 2011. This increase is
mainly due to the acquisition of AmerCable, finalized on February 29,
2012, for an enterprise value of 211 million euros. The increase was
also compounded by the seasonal rise in working capital cumulated with
the significantly higher raw material prices in the first quarter 2012
compared with the last quarter 2011.
|
CONSOLIDATED SALES BY BUSINESS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 2011
|
|
|
|
Q1 2012
|
|
|
|
Organic growth
Q1 2012 vs
Q1 2011
|
|
(in million of euros)
|
|
|
|
At constant
metal
prices
|
|
|
|
At constant
metal
prices
|
|
|
|
|
Transmission, Distribution and Operators
|
|
|
|
502
|
|
|
|
481
|
|
|
|
-6.1%
|
|
Industry
|
|
|
|
245
|
|
|
|
281
|
|
|
|
+6.1%
|
|
Distributors and Installers
|
|
|
|
299
|
|
|
|
332
|
|
|
|
+8.9%
|
|
Other
|
|
|
|
83
|
|
|
|
75
|
|
|
|
-4.8%
|
|
Total Group
|
|
|
|
1,129
|
|
|
|
1,169
|
|
|
|
+0.6%
|
|
|
1) Operating margin rate on sales at constant non-ferrous metal prices.
2)
For comparison purposes, the appendix 2 of this press release provides
the quarterly sales of the exercise 2011 according to this new
segmentation.
3) To neutralize the effect of variations in the
purchase price of non-ferrous metals and therefore measure the
underlying sales trend, Nexans also calculates its sales using a
constant price for
copper and aluminum.
4) 2011 sales on the
basis of comparable data correspond to constant non-ferrous metal sales,
recalculated after adjustments for comparable scope and exchange rates.
The exchange rate
effect on sales at constant non-ferrous metal
prices, at the end of 2011 first quarter sales is 22 million euros, the
scope effect is 11 million euros.
-
Transmission, Distribution and Operators
The "Transmission, Distribution and Operators" business reported an
organic contraction in the first quarter 2012 of 6.1%. This decrease is
attributable to the lower invoicing on the quarter in the Transmission
activities, whereas the growth of segments Distribution of energy and
Operators Telecom remained strong.
Regarding submarine transmission activity, the Group experienced in the
quarter a slower than expected rate in commencing certain production
runs: the Group has to face increasingly large projects, a source of
greater complexity, and a high workload level.
The fundamentals of this activity are not affected and tendering
activity continued steadily during the quarter, in particular for
offshore wind projects. The Group recently won a significant submarine
cable contract in Belgium (Northwind) for offshore wind turbines. With
the other contracts awarded so far, totaling more than 1,000 km of
submarine cables for the wind power market, the Group has acquired
outstanding experience in this market segment.
In underground transmission, business remains competitive. In Libya,
however, in spite of the attribution of new contracts, the political
situation has not yet sufficiently stabilized to allow work to resume
onsite.
The Group's Distribution activity has increased in the first quarter of
2012 compared with the same period a year earlier. In Europe, growth was
driven by the ongoing major investment program in France and a favorable
climate factor in Scandinavia. North America reported a recovery in the
quarter. South Korea was the main source of growth in the Asia-Pacific
area. Sales rose sharply in the Middle East, Russia and Africa area as a
result of ongoing large-scale investment plans in Russia and Lebanon and
a positive base effect in Egypt and Morocco. Finally, after a period of
strong growth in 2011, the South America area remained steady at a high
level thanks to ongoing overhead power line projects in Brazil.
The "Operators" activity (formerly Telecom Infrastructure) reported
strong growth for the first quarter 2012 for copper cables in South
America and fiber cables and components in Scandinavia and France.
Overall, the profitability of the « Transmission, Distribution and
Operators » segment will decline to June 30, 2012 compared to the first
half 2011.
In the first quarter 2012, organic growth for "Industry" came to 6.1%
compared with the first quarter 2011.
For Automotive harnesses, which account for about one third of the
"Industry" activity, sales continued their double-digit growth, driven
by the strength of the German high end auto industry.
The transportation-related activities reflect significant contrasts: the
recovery was confirmed for shipbuilding, activity is stable in
aeronautics, and the railways segment is still suffering from weak
demand in China. Demand was weaker for the capital goods and the
automation market segments.
Finally, in the area of resources, the Group is continuing to enjoy very
strong growth, largely attributable to the oil & gas and mining
industries.
AmerCable, which has leading positions in the oil and gas and mining
industries in North America was incorporated into the Group on 1st
March 2012. Its contribution to Group sales at constant metal prices in
the first quarter 2012 was 16 million euros for the period. The
integration plan has been implemented and is proceeding to schedule. The
first benefits from synergies are expected in the second half of 2012.
-
Distributors and Installers
Sales at a constant exchange rate and scope rose by 8.9% compared with
the first quarter 2011. The trend for the power cable business is very
well oriented whereas the LAN cable business has contracted.
Power cable business is very strong across all geographical areas,
including Europe. In the Asia-Pacific area, the Group continues to
benefit from the dynamic mining sector in Australia and strong activity
in South Korea. Figures for the Middle East, Russia and Africa area
reflect a positive base effect (the first quarter 2011 had been affected
by the Arab Spring). For South America, the Group has reported growth in
Brazil, Chile, Colombia and Peru. In North America, sales rose by more
than 10% driven by vigorous demand. Finally, in Europe, sales progressed
by more than 5%. The Group benefits from its high exposure to the
Northern European economies, while activity in Italy and Spain continues
to deteriorate.
This segment mainly includes the former "Electrical Wires" business.
In the first quarter of 2012, sales fell by 4.8% compared with the first
quarter 2011 with the Group internal sales favored at the expense of
external clients.
Other information
In order to assist Madeco in its equity method accounting for its shares
in Nexans at the end of the first quarter, the following non operational
accounting data are published : change in equity related to the fair
value of hedging instruments on metal (+ 23 million Euros), change in
equity related to currency translation differences (-2 million Euros),
change in equity related to the OCEANE convertible / exchangeable bond
issued in February 2012 (+27 million Euros) and Core exposure effect
(+10 million Euros).
A conference call is organized today at 10.00 am (Paris time). To
participate to this call please dial the following numbers:
-
Call from France = 01 70 77 09 38
-
Call from UK = +44 203 367 9456
-
Call from USA = +1 866 907 5924
Replay numbers are the following (conference available 2 hours after the
end of the call):
-
Call from France = 01 72 00 15 00
-
Call from UK = +44 203 367 9460
-
Call from USA = +1 877 642 3018
For the replay, please dial 276853 followed by #
Readers should also consult the Group's Web site on which are
available in particular the presentation
of the annual results to financial analysts, the full
financial statements and the 2011
management report, which includes the Group's risk factors
and confirmation of the risks relating to the antitrust investigations
in Europe, United States, Canada, Brazil, Australia and Korea in
relation to anticompetitive behavior in the sector of submarine and
underground power cables as well as the related accessories and
services. An unfavorable outcome of these investigations and follow on
consequences could have a material adverse effect on the results and the
financial situation of the Group.
Financial calendar
May 15, 2012: Annual Shareholders' Meeting
June 6, 2012: Individual
shareholder information meeting in Tours*
July 25, 2012: 2012
first-half financial results (pre-market)
*Tentative date
subject to change
About Nexans
With energy at the basis of its development, Nexans, worldwide expert in
the cable industry, offers an extensive range of cables and cabling
solutions. The Group is a global player in the energy transmission and
distribution, industry and building markets. Nexans addresses a wide
series of market segments: from energy and telecom networks to energy
resources (wind turbines, photovoltaic, oil and gas or mining...) to
transportation (shipbuilding, aerospace, automotive and automation,
railways...).
Nexans is a responsible industrial company that regards sustainable
development as integral to its global and operational strategy.
Continuous innovation in products, solutions and services, employee
development and commitment, customer orientation and the introduction of
safe industrial processes with limited environmental impact are among
the key initiatives that place Nexans at the core of a sustainable
future.
With an industrial presence in 40 countries and commercial activities
worldwide, Nexans employs 25,000 people and had sales in 2011 of 7
billion euros. Nexans is listed on NYSE Euronext Paris, compartment A.
For more information, please consult: www.nexans.com
or www.nexans.mobi
|
|
|
Appendices
|
|
1. 2012 First quarter sales by business
|
|
2. 2011 sales by quarter according to the new segmentation
|
|
Appendix 1
|
|
(in millions of euros)
|
|
|
|
|
|
|
|
|
|
|
|
First quarter
|
|
|
|
|
|
2011
|
|
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
At current metal prices
|
|
|
|
1,754
|
|
|
|
1,752
|
|
At constant metal prices
|
|
|
|
1,129
|
|
|
|
1,169
|
|
|
|
Sales at current metal prices by business
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and
Operators
|
|
|
|
610
|
|
|
|
582
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
|
|
320
|
|
|
|
364
|
|
|
|
|
|
|
|
|
|
|
|
Distributors and Installers
|
|
|
|
553
|
|
|
|
579
|
|
|
|
|
|
|
|
|
|
|
|
others
|
|
|
|
271
|
|
|
|
228
|
|
|
|
|
|
|
|
|
|
|
|
Total Group
|
|
|
|
1,754
|
|
|
|
1,752
|
|
|
|
Sales at constant metal prices by business
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Operators
|
|
|
|
502
|
|
|
|
481
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
|
|
245
|
|
|
|
281
|
|
|
|
|
|
|
|
|
|
|
|
Distributors and Installers
|
|
|
|
299
|
|
|
|
332
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
83
|
|
|
|
75
|
|
|
|
|
|
|
|
|
|
|
|
Total Group
|
|
|
|
1,129
|
|
|
|
1,169
|
|
|
|
Appendix 2
|
|
(in millions of euros)
|
|
|
|
|
|
|
|
Q1 2011
|
|
|
|
Q2 2011
|
|
|
|
Q3 2011
|
|
|
|
Q4 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At current metal prices
|
|
|
|
1,754
|
|
|
|
1,774
|
|
|
|
1,711
|
|
|
|
1,682
|
|
At constant metal prices
|
|
|
|
1,129
|
|
|
|
1,158
|
|
|
|
1,127
|
|
|
|
1,180
|
|
|
|
Sales at current metal prices by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Operators
|
|
|
|
610
|
|
|
|
649
|
|
|
|
618
|
|
|
|
674
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
|
|
320
|
|
|
|
335
|
|
|
|
323
|
|
|
|
317
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributors and Installers
|
|
|
|
553
|
|
|
|
558
|
|
|
|
551
|
|
|
|
519
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
271
|
|
|
|
232
|
|
|
|
219
|
|
|
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Group
|
|
|
|
1,754
|
|
|
|
1,774
|
|
|
|
1,711
|
|
|
|
1,682
|
|
|
|
Sales at constant metal prices by business
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Operators
|
|
|
|
502
|
|
|
|
522
|
|
|
|
501
|
|
|
|
566
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industry
|
|
|
|
245
|
|
|
|
254
|
|
|
|
248
|
|
|
|
244
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Distributors and Installers
|
|
|
|
299
|
|
|
|
305
|
|
|
|
307
|
|
|
|
306
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others
|
|
|
|
84
|
|
|
|
77
|
|
|
|
71
|
|
|
|
65
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Group
|
|
|
|
1,129
|
|
|
|
1,158
|
|
|
|
1,127
|
|
|
|
1,180
|
Nexans
Financial Communication
Michel Gédéon,
+33 (0)1 73 23 85 31
michel.gedeon@nexans.com
or
Carole
Vitasse, + 33 (0)1 73 23 84 56
carole.vitasse@nexans.com
or
Jean-Marc
Bouleau, + 33 (0)1 73 23 84 61
jean_marc.bouleau@nexans.com
or
Corporate
Communication
Jean-Claude Nicolas, + 33 (0)1 73 23 84 51
jean-claude.nicolas@nexans.com
or
Pascale
Strubel, + 33 (0)1 73 23 85 28
pascale.strubel@nexans.com
or
Angéline
Afanoukoe, + 33 (0)1 73 23 84 12
angeline.afanoukoe@nexans.com
© Business Wire 2012
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