HIGHLAND HEIGHTS, Ky. — General Cable Corporation reported results for the third quarter ended October 2, 2015. For the quarter, the Company generated adjusted earnings per share from continuing operations of $0.26 and adjusted operating income from continuing operations of $47 million. Reported earnings per share from continuing operations for the quarter were $(0.69) and reported operating income from continuing operations was $17 million.
Michael T. McDonnell, President and Chief Executive Officer, said, “We are pleased with our adjusted operating income in the third quarter, which was ahead of our guidance range. This reflects the strong performance of our subsea power business in Europe as well as our operations in North America driven by our electric utility and communications businesses. We remain focused on optimizing the performance of our businesses in North America, Europe and Latin America, building a leading cost position, and continuing to execute on our restructuring and divestiture programs to create a more streamlined, and nimble organization. We are encouraged by our progress and are on the right path toward generating long-term value for shareholders but realize we have more to accomplish. To that end, we look forward to sharing our strategic roadmap in the early part of next year. We believe continued execution of our current plans, coupled with the implementation and execution of our strategic roadmap, will put us on course to achieve industry leading margins in the markets we serve.”
Segment Demand
North America – unit volume through the first nine months of the year was up 5% year over year primarily due to demand for electric utility, communications and rod and strip products. For the third quarter, unit volume was up 2% year over year driven by demand for electric utility cables for aerial transmission and grid reinforcement projects. Sequentially, unit volume was flat as demand for utility cables helped to offset lower demand for industrial and specialty products.
Europe – excluding the impact of restructuring activity including the exit from certain low value add end markets in 2015, unit volume through the first nine months of the year and for the third quarter was down year over year 12% and 10%, respectively, principally due to lower demand for industrial and construction products. Demand for electric utility cables was stable during the third quarter including land and submarine turnkey projects. The Company’s turnkey project backlog was $215 million as of the end of the third quarter. Sequential unit volume was down due to seasonal demand patterns.
Latin America (excluding Venezuela) – excluding metal intensive products such as copper rod and aerial transmission cables, unit volume through the first nine months of the year was down 15% year over year as end market demand remains under pressure throughout Latin America due to the ongoing difficult economic conditions and reduced government spending.
Other Expense
Other expense of $27 million for the third quarter consisted of mark-to-market losses of $8 million on derivative instruments accounted for as economic hedges and foreign currency transactions losses of $19 million, of which $13 million relates to non-core operations in Africa.
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