HIGHLAND HEIGHTS, Ky. — General Cable Corporation announced that its Board of Directors has initiated a review of strategic alternatives to maximize shareholder value, including a potential sale of the Company. The Company has engaged J.P. Morgan Securities LLC as financial advisor and Sullivan & Cromwell LLP as legal advisor to assist in the process.
John E. Welsh, III, Non-Executive Chairman of the Board, said, “After careful consideration, our Board has determined to undertake a review of strategic alternatives with the goal of maximizing shareholder value. While the management team has made excellent progress in the execution of our strategic roadmap to transform the Company into a more focused, efficient and innovative organization, we expect the industry to consolidate over time and believe the review at this time is in the best interests of shareholders.”
Michael T. McDonnell, President and Chief Executive Officer, said, “I am proud of the efforts of our people to transform our business over the last two years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth in key segments. While we are benefiting from these significant operational and financial performance improvements, current dynamics in our industry are masking those accomplishments, and we expect that trend to continue through the second half of 2017 and into 2018. As the Board conducts its review, we remain committed to executing our plan, to competing and to continuing to deliver innovative wire and cable solutions that exceed customer expectations.”
There can be no assurance that the Board's strategic review will result in any transaction, or any assurance as to its outcome or timing. The Company does not intend to disclose or comment on developments related to its review unless and until the Board has approved a specific transaction or otherwise determined that further disclosure is appropriate.
The Company also announced preliminary financial results for the second quarter ended June 30, 2017. The Company expects to report revenues of approximately $923 million for North America, Europe and Latin America. The Company also expects to report reported operating loss and adjusted operating income for the second quarter of approximately ($23) million and $32 million, respectively. The expected reported operating loss primarily reflects a one-time non-cash charge of approximately $36 million related to the sale of the Company's investment in Algeria, which was divested consistent with the Company's previously announced divestiture program. A reconciliation of the reported operating loss to adjusted operating income is set out below. Additionally, as of June 30, the Company maintained availability of approximately $360 million under its $700 million asset-based revolving credit facility.
The Company's interim financial statements for the three months ended June 30, 2017 are not yet available. The preliminary, unaudited financial information for the quarter ended June 30, 2017 presented herein is based solely on management's estimates reflecting currently available preliminary information and remains subject to the Company's customary closing and review processes. Final adjustments and other material developments may arise between the date of this press release and the date the Company announces second quarter 2017 results and files its Quarterly Report on Form 10-Q with the Securities and Exchange Commission.
The Company plans to report second quarter 2017 results in a press release on August 2, 2017.
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