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Nexans Shows Strong growth in first half-year 2007 results
- Organic
sales growth of cable businesses*: +12.9%
- Operating
margin: +73%
- Net debt
reduced by 100 million euros
Paris, 25 July,
2007: The Board of Directors of
Nexans chaired by
Gérard Hauser, met on July 24, 2007 and reviewed the Group's consolidated
financial statements for the 2007 first half-year.
- First half-year
sales reached 3,792 million
euros compared to 3,686 million euros at June 30, 2006.
At constant non-ferrous metal prices**, sales reached 2,451 million
euros compared to 2,273 million euros in the first half of 2006. The organic
growth of the cable businesses was 12.9% (4.6% including the electrical
wires business).
- The
operating margin totaled 187 million euros over the period,
compared to 108 million euros in the first half of 2006, an increase of 73%.
Operating margin as a percentage of sales has increased from first half 2006
to first half 2007 from 4.8% to 7.6% at constant non-ferrous metal prices.
- Net
income (Group share) for the first half of the year totaled
119 million euros, compared to 211 million euros at June 30, 2006. In the
first half of 2006, net income included a capital gain of 149 million euros
from the sale of distribution activities in Switzerland.
- Net
financial debt totaled 533 million euros at June 30, 2007,
100 million euros lower than at December 31, 2006, reflecting a 141%
increase in cash flow and good control of the working capital in an
environment of strong growth.
* Cable businesses and associated products
(accessories), excluding electrical wires.
** 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 aluminium
(see note 1 h. in the appendix to the 2006 financial statements, in the 2006
Annual Report).
Strategic priorities confirmed by excellent
first half-year results
Commenting on the first half-year results, Gérard
Hauser, Nexans’ Chairman and CEO, said: "The excellent results achieved by
the Group in the first half of 2007 demonstrate the validity of the direction
set by the Strategic Plan presented in January. The focus on energy
infrastructures, industry priority markets such as transport and oil and gas
businesses, and the withdrawal from upstream sectors, is orienting the Group to
businesses with longer economic cycles. Growth is being achieved alongside an
improvement in the balance sheet.
These characteristics, together with an
ambitious investment program and an ongoing culture of operational improvement
constitute the Group’s specific strengths. They will enable us to continue
applying our policy of strong and profitable growth in the second half. In view
of these factors, we expect to achieve annual double-digit sales growth in our
cable businesses, with second-half operating margin as a percentage of sales
higher than in the first half. Furthermore, we are continuing to pursue our
target of reducing debt, at a constant consolidation scope and at constant
copper prices, compared with December 31, 2006."
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