HIGHLAND HEIGHTS, Ky. — General Cable Corporation reported today results for the first quarter ended March 30, 2018. For the quarter, reported loss per share was $0.08 and reported operating income was $34 million. Adjusted earnings per share and adjusted operating income were $0.20 and $38 million, respectively, for the quarter.
Michael T. McDonnell, President and Chief Executive Officer, said, “Our first quarter reflects continued performance improvement in Latin America, stronger subsea and land turnkey project activity in Europe, and demand stability in our North America businesses, particularly electric utility, construction and automotive. Although commodity pricing and business dynamics related to our review of strategic alternatives and pending transaction with Prysmian S.p.A. affected results, our 2018 outlook is positive, as seasonal demand trends, turnkey project activity, and restructuring savings are expected to drive sequential and year over year improvement in the second quarter.” McDonnell continued, “Regarding the pending merger with Prysmian, we are also pleased that the regulatory approval process is advancing, and we continue to expect the merger to be completed by the third quarter of 2018, subject to receiving the remaining regulatory approvals and satisfying other customary conditions.”
- Reported operating income of $34 million was up $10 million year-over-year primarily due to the wind down of restructuring costs coupled with stronger subsea and land turnkey project activity in 2018
- Adjusted operating income of $38 million decreased $7 million year-over-year as continued performance improvement in Latin America and stronger subsea and land turnkey project activity in Europe was more than offset by subsiding metal benefits and unfavorable product mix in North America
- Impact of rising metal prices was a benefit of $2 million and $7 million for the first quarter of 2018 and 2017, respectively
- Operating cash flow was a use of $86 million for the first quarter of 2018 driven by investments in working capital and rising metal prices
- Maintained significant liquidity with $255 million of availability on the Company’s $700 million asset-based revolving credit facility and $54 million of cash and cash equivalents
First Quarter Segment Demand
North America – Unit volume as measured in metal pounds sold was up 4% versus prior year driven by stronger demand for construction, automotive and aluminum rod products.
Europe – Unit volume as measured in metal pounds sold was up 7% versus prior year driven by stronger demand for electric utility products including subsea and land turnkey project activity.
Latin America – Unit volume as measured in metal pounds sold was down 10% versus prior year driven by uneven spending on electric infrastructure and construction projects throughout the region as well as the impact of the Company’s go-to-market initiatives focused on margin improvement. Aerial transmission cables in Brazil as measured in metal pounds sold was down 8% year over year.
At the end of the first quarter 2018 and the end of the fourth quarter 2017, total debt was $1,169 million and $1,086 million, respectively, and cash and cash equivalents were $54 million and $85 million, respectively. The increase in net debt was driven by seasonal investments in working capital and rising metal prices.Tagged with financial, General Cable