general cable corp (BGC) Key Developments
General Cable Corporation Revised Earnings Guidance for the First Quarter of 2014; Reaffirms Earnings Guidance for the Second Quarter of 2014
Mar 27 14
General Cable Corporation revised earnings guidance for the first quarter of 2014. The company announced first quarter adjusted operating income is expected to be below the company's previously communicated outlook. The company now expects to generate adjusted operating income in the range of $17 million to $27 million in the first quarter of 2014. The company's previous outlook was $30 to $45 million. Relative to the company's previously communicated first quarter outlook, business activity in Venezuela has significantly lagged expectations due to the ongoing social unrest and uncertainty surrounding the recently announced price controls. In North America, operating results are expected to lag management's expectations principally due to the extreme winter weather experienced across the region as unit volume is anticipated to be in the range of 4% - 6% lower than previously communicated for the first quarter. Finally, first quarter operating results are expected to be impacted by selling higher average cost inventory into a lower metal price environment as copper prices rapidly declined during the month of March. Given the current lower copper price environment, the ongoing uncertainty in Venezuela and the weather related issues in North America, the company anticipates generating adjusted operating income for 2014 at around the low end of its previously communicated range of $260 million to $320 million.
Going forward into the second quarter of 2014, the company continues to expect a sharp improvement in operating results as construction activity accelerates and installation work on submarine projects in the North and Baltic Seas resumes.
General Cable Corporation Announces Transition of Emmanuel Sabonnadiere as Executive Vice President, President and Chief Executive Officer of Europe & Mediterranean, Up to Six Months
Mar 20 14
General Cable Corporation announced that Emmanuel Sabonnadiere, Executive Vice President, President and Chief Executive Officer, Europe & Mediterranean, will transition from his current position for a period of up to six months. The company has launched a formal search for a successor and Mr. Sabonnadiere will continue in his current position under his current contract during the transition period. Emmanuel will be working closely with Gregory B. Kenny, President and Chief Executive Officer, the Global Operating Committee and the Europe & Mediterranean team to provide an orderly transition. Emmanuel may continue to represent the Company in certain of its business investments, including its Algerian joint venture, while providing ongoing technical, strategic and business development consulting services for General Cable.
General Cable Corporation Announces Retirement of Robert J. Siverd as Executive Vice President, General Counsel and Secretary
Feb 18 14
General Cable Corporation announced that Robert J. Siverd plans to retire from his role as Executive Vice President, General Counsel and Secretary of the company upon the successful completion of an executive search. Mr. Siverd will continue as the General Counsel of the company until a successor is in place in order to facilitate an orderly transition of his responsibilities. This transition is expected to be complete in the second half of 2014 with Mr. Siverd available beyond that point on a consultative or project specific basis.
General Cable Corp. Reports Unaudited Consolidated Earnings Results for Fourth Quarter and Year Ended December 31, 2013; Provides Earnings Outlook for the First Quarter and Full Year 2014
Feb 12 14
General Cable Corp. reported unaudited consolidated earnings results for fourth quarter and year ended December 31, 2013. For the quarter, the company’s net sales were $1,661.3 million against $1,622.2 million a year ago. Operating income was $65.2 million against $7.3 million a year ago. Adjusted operating income was $70.0 million against $50.0 million a year ago. Capital expenditure was $23.7 million against $18.8 million a year ago. Income before income tax was $25.3 million against loss of $37.5 million a year ago. Net income attributable to company common shareholders was $13.7 million or $0.27 per diluted share against loss of $15.8 million or $0.32 per diluted share a year ago. The increase in net sales for the quarter on a metal adjusted basis was principally due to the performance of the Company's submarine turnkey project business in Europe. Net debt as on December 31, 2013 was $968 million, a decrease of $27 million from the end of the third quarter of 2013. The decrease in net debt is principally due to reductions in working capital as a result of normal seasonal trends including the collection of submarine turnkey project milestone payments. Adjusted operating income per share was $0.36 against $0.31 a year ago.
For the year, the company’s net sales were $6,421.2 million against $6,059.5 million a year ago. Operating income was $211.7 million against $199.4 million a year ago. Adjusted operating income was $263.9 million against $258.5 million a year ago. Capital expenditure was $89.1 million against $108.6 million a year ago. Income before income tax was $27.0 million against $86.9 million a year ago. Net loss attributable to company common shareholders was $18.1 million or $0.37 per diluted share against profit of $4.0 million or $0.08 per diluted share a year ago. Adjusted operating income per share was $1.73 against $1.95 a year ago. Net debt was $968 million at the end of 2013, a decrease of $27 million from the end of the third quarter. The decrease in net debt is principally due to reductions in working capital as a result of normal seasonal trends, including the collection of submarine turnkey project milestone payments.
For the full year of 2014 assuming copper prices remain at relatively stable levels, the Company is expecting to generate adjusted operating income in the range of $260 to $320 million on low single digit volume growth. The Company expects to generate $250 to $325 million of operating cash flow in 2014 with capital spending below depreciation. The company expects effective tax rate of 40%.
For the first quarter of 2014, revenues are expected to be in the range of $1.55 to $1.60 billion as volume is anticipated to decline in the low single digit range sequentially. The Company expects adjusted operating income to be in the range of $30 to $45 million. Adjusted earnings per share are expected to be in the range of $0.05 to $0.22 per share before the impact of non-cash convertible debt interest expense and mark to market gains or losses on derivative instruments. The Company's first quarter outlook assumes copper and aluminum prices of $3.32 and $0.96. The first quarter is typically the slowest period of the year due to limited construction activity driven principally by weather and extended holidays. EPS expects in the range of $0.04 to $0.21.
General Cable Corp., Q4 2013 Earnings Call, Feb 13, 2014
Jan 22 14
General Cable Corp., Q4 2013 Earnings Call, Feb 13, 2014