HIGHLAND HEIGHTS, Ky. — General Cable Corporation reported today results for the third quarter ended September 29, 2017. For the quarter, reported loss per share was $0.28 and reported operating income was $1 million inclusive of $27 million in non-cash charges primarily related to the sale of operations in China. Adjusted earnings per share and adjusted operating income were $0.25 and $43 million, respectively, for the quarter. See page 2 of this press release for the reconciliation of reported to adjusted results and related disclosures.
Michael T. McDonnell, President and Chief Executive Officer, said, “We are pleased to report a strong third quarter. Our team continues to execute well on our strategic roadmap initiatives to drive performance improvement in our core segments in North America, Europe and Latin America, despite ongoing challenging industry dynamics. Overall, our second half performance remains on track with our previously communicated expectations. We anticipate the second half of 2017 to be consistent with the first half of the year and up approximately 30% as compared to the second half of 2016.”
Third Quarter Summary
- Reported operating income of $1 million primarily impacted by non-cash charges of $27 million principally related to the sale of operations in China
- Adjusted operating income of $43 million increased $11 million year over year as restructuring savings, metal price tailwinds and continued performance improvement in Latin America more than offset the impact of lower subsea project activity
- Divestiture program nearly complete with the sale of China bringing total proceeds to $220 million and on target to meet previously communicated range of $250 to $300
- Maintained significant liquidity with $363 million of availability on the Company’s $700 million asset-based revolving credit facility and $72 million of cash and cash equivalents
- Impact of higher metal prices was a $6 million benefit compared to a negative $2 million impact in the prior year period
- Board continues to execute on its previously announced review of strategic alternatives to maximize shareholder value, including a potential sale of the Company
Third Quarter Segment Demand
North America – Unit volume was up 12% versus prior year driven principally by stronger demand for aerial transmission cables and industrial, construction and specialty (ICS) products.
Europe – Unit volume was flat versus prior year as stronger demand for electric utility products including land-based turnkey projects helped to offset the easing performance of the subsea turnkey project business and continued weakness in industrial and construction markets throughout the region.
Latin America – Unit volume was up 11% versus prior year driven by the shipment of aerial transmission cables in Brazil. The region continues to experience uneven spending on electric infrastructure and construction projects.
At the end of the third quarter of 2017 and the end of the fourth quarter of 2016, total debt was $1,091 million and $939 million, respectively, and cash and cash equivalents were $72 million and $101 million, respectively. The increase in net debt was principally due to investment in working capital, partly due to higher metal prices, and payments totaling $52 million related to our FCPA resolution through the first half of 2017.
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