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General Cable Reports First Quarter 2018 Results
HIGHLAND HEIGHTS, Ky -Wednesday, May 9th 2018 [ AETOS Wire ] (BUSINESS WIRE)-- General Cable Corporation (NYSE: BGC) 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. See page two of this press release for the reconciliation of reported to adjusted results and related disclosures. 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.” Summary • Reported operating income of $34 million was up $10 million year over year primarily due 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 were 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. Net Debt 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. Non-GAAP Financial Measures Adjusted operating income (defined as operating income before extraordinary, nonrecurring or unusual charges and other certain items), adjusted earnings per share (defined as diluted earnings per share before extraordinary, nonrecurring or unusual charges and other certain items) and net debt (defined as long-term debt plus current portion of long-term debt less cash and cash equivalents) are “non-GAAP financial measures” as defined under the rules of the Securities and Exchange Commission (“SEC”). Metal-adjusted revenues and return on metal-adjusted sales on a segment basis, both of which are non-GAAP financial measures, are also provided herein. See “Segment Information.” These Company-defined non-GAAP financial measures exclude from reported results those items that management believes are not indicative of our ongoing performance and are being provided herein because management believes they are useful in analyzing the operating performance of the business and are consistent with how management reviews our operating results and the underlying business trends. Use of these non-GAAP measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with the Company’s results reported according to GAAP. Historical segment adjusted operating results are disclosed in the First Quarter 2018 Investor Presentation available on the Company’s website. Read more ... Source : http://aetoswire.com/news/general-cable-reports-first-quarter-2018-results/en
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