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news release:
NEXANS :
Financial information for 2007 first quarter
Paris, France, 17 April 2007:
Nexans today announced its
2007 first quarter sales of 1,805 million euros (at actual non-ferrous metal
prices**). At constant non-ferrous metal prices***, sales were 1,194 million
euros, reflecting organic growth of 6%. Excluding the electrical wires business
where the reduction in activity has been programmed by the Group, growth was
15.1%.
This strong organic growth of sales was accompanied by a notable increase in
operating margin compared with the first quarter of 2006.
Nexans net financial debt at March 31, 2007 remained stable compared to that
recorded at December 31, 2006 (633 million euros).
* Cables and associated products (accessories), excluding electrical wires
** At actual metal prices, first quarter 2006 sales were 1,659 million euros
(see Appendix).
*** To neutralize the effect of variations in the purchase price of non-ferrous
metals and thus measure the underlying sales trend, Nexans also calculates its
sales using a constant price for copper and aluminum.
Consolidated sales by business sector
Sales figures are now presented according to the classification adopted in the
new 2007-2009 strategic plan published in January.
+------------------------+-------------+-------------------+-------------------+-+---------------+
| (in millions of euro) | Q1 06 | | Q1 07 | | % Variation |
+------------------------+-------------+-------------------+-------------------+-+---------------+
| | At constant | At constant | At constant | |Organic growth |
+------------------------+-------------+-------------------+-------------------+-+---------------+
| |metal prices | metal prices | metal prices | | |
+------------------------+-------------+-------------------+-------------------+-+---------------+
| | |and exchange rates |and exchange rates | | |
+------------------------+-------------+-------------------+-------------------+-+---------------+
| | | | | | |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Energy infrastructures | 309 | 303 | 371 | | + 11,4 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Industry | 195 | 193 | 255 | | + 17,3 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Building | 247 | 243 | 288 | | + 16,7 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Telecom Infrastructures | 54 | 53 | 65 | | + 21,8 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Private Network (LAN) | 64 | 60 | 71 | | + 17,6 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Other | 2 | 2 | 1 | | |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Total: Cable businesses | 871 | 854 | 1,051 | | +15,1% |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Electrical wires | 224 | 214 | 143 | | - 32,9 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
|Total Group | 1,095 | 1,068 | 1,194 | | + 6,0 % |
+------------------------+-------------+-------------------+-------------------+-+---------------+
- Energy infrastructures: high level of activity
Demand for energy infrastructure cables remained very strong. Sales grew over
11% on the basis of comparable data during the first quarter. This growth was
seen mainly in sales of accessories and high voltage cables.
- Industry: strong development of priority sectors
Up 17.3% on the basis of comparable data, sales of special cables for large
industrial equipment manufacturers accelerated worldwide, with particularly
vigorous growth in the Shipbuilding and Oil & Gas sectors.
- Building: strong organic growth and high margins
Sales in the building sector in the first quarter of 2007 continued at the same
pace as in the second half of 2006 with organic growth of 17%. Profit margins
continued to improve with sales volumes substantially the same in Europe as in
the last quarter of 2006, and were slightly better in North America in the
stated period.
- Telecom infrastructures: acceleration of sales
Telecom sales increased by approximately 22% on the basis of comparable data
during the first quarter of 2007, as a result of positive developments in the
niche markets for optical fiber cables as well as increasing sales in the
telecommunications copper cable industry, in particular in Asia and originating
from Spain.
- Private Network (LAN): further increase in sales
LAN cable activities recorded growth of 17.6%, following the same trends
observed during the last quarter of 2006 (in terms of price and volumes).
- Electrical wires
Since the Group has refocused on its internal requirements, sales of electrical
wires have decreased by 33%. Operating margin has nevertheless improved as a
result of commercial measures taken in respect of external sales and cost
reduction measures.
Sales by geographical area
+-----------------------------+-------------------------+-------------------------+-------------------------+
| (in millions of euros) | Q1 06 | | Q1 07 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
| |At constant metal prices |At constant metal prices |At constant metal prices |
+-----------------------------+-------------------------+-------------------------+-------------------------+
| | | and exchange rates | and exchange rates |
+-----------------------------+-------------------------+-------------------------+-------------------------+
| | | | |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Europe | 629 | 627 | 727 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|North America | 112 | 10 3 | 106 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Asia-Pacific | 57 | 54 | 133 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Rest of the World | 73 | 70 | 85 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Total: Cable businesses | 871 | 854 | 1,051 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Electrical wires (all areas) | 224 | 214 | 143 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
|Total Group | 1,095 | 1,068 | 1,194 |
+-----------------------------+-------------------------+-------------------------+-------------------------+
Sales rose in all geographical areas.
The acquisition of Olex was finalized in December 2006 and resulted in strong
growth in the Asia-Pacific area (+145%) following the integration of Olex.
Excluding Olex, the Asia-Pacific area recorded organic growth for cables
businesses of 13.7%.
During the first quarter of 2007, sales in the cable businesses in North America
only grew by 3.1%, due to the temporary closure of a production site dedicated
to energy networks, which is currently starting up again.
On the basis of comparable data, cable business sales increased by 16.6% in
Europe and by 22.1% in the Rest of the World area.
Nexans takes this opportunity to update its communication regarding significant
outstanding litigation in Appendix 2 attached hereto.
Financial calendar
May 10, 2007: Annual Shareholders' Meeting
May 15, 2007: Payment of dividend
June 7, 2007: Individual shareholders' information meeting in Clermont-Ferrand*
June 19, 2007: Individual shareholders' information meeting in Lille*
July 25, 2007: Publication of 2007 first-half sales and results
* provisional dates
About Nexans
With energy as the basis of its development, Nexans, the worldwide leader in the
cable industry, offers an extensive range of cables and cabling systems. The
Group is a global player in the infrastructure, industry and building markets.
Nexans addresses a series of market segments from energy, transport and telecom
networks to shipbuilding, oil and gas, nuclear, automotive, electronics,
aeronautics, handling and automation.
With an industrial presence in more than 30 countries and commercial activities
worldwide, Nexans employs 21,000 people and had sales in 2006 of 7.5 billion
euros. Nexans is listed on the Paris stock exchange, compartment A of the
Eurolist of Euronext. More information on
http://www.nexans.com/
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