General Cable reports 6% sales increase for 4Q

Diversified industrial manufacturer General Cable today reported sales for the fourth quarter of $1.6 billion, an increase of 6% from the prior-year period. The company reported a net loss of $17.1 million.

In North America, sales were $687.4 million. Seasonal demand patterns in the company’s utility businesses coupled with slower industrial and data product shipments broadly reduced demand for wire and cable products during the fourth quarter compared to the third quarter of 2012. Demand for electrical infrastructure products, particularly specialty cables tied to natural resource extraction, marine and transit applications, remains relatively stable year-over-year. Unit volume for metal-intensive aerial transmission products reached an all-time quarterly high.

For the rest of the world (ROW) sales were $514.2 million. Demand in Asia Pacific was more than offset by traditional seasonal declines and normalized order rates in Central and South America following the strong demand experienced in the third quarter, particularly in Venezuela and Brazil. Copper and aluminum rod shipments also declined in the fourth quarter.

During the quarter, General Cable completed the acquisition of Alcan Cable China, which is expected to generate about $80 million to $100 million in revenue. The company also completed its acquisition of Prestolite Wire LLC on Nov. 2, 2012, bringing a broad range of wire and cable products serving predominately transportation OEMs and distributors.

Prestolite is expected to generate revenue in the range of $170 million to $200 million.

In Europe and the Mediterranean, sales were $401.5 million. Stronger electric utility product shipments in France and the Mediterranean coupled with the supply of specialty cables including offshore oil and gas products more than offset the ongoing weakness in the domestic markets in Spain, the company said.

“We expect to continue to benefit from pockets of relative strength in cable demand tied to North American aerial transmission projects, U.S. housing, oil and gas extraction, the — and in electrical infrastructure, as well as mining and construction in emerging markets. Overall, we continue to expect a slow recovery in key end markets, with some potential for improvement moving into the second half of 2013,” said Gregory Kenny, CEO and president

“For 2013, we’re expecting to generate operating income in the range of $300 million to $340 million, as our recent acquisitions, along with our businesses in the Americas, Africa and Asia-Pacific, continue to show improvement.”

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