Skip to main content

If you can read this text, your browser is not interpreting this page as the designers intended. This may be because you are using an obsolete, non-standards compliant browser or you have Cascading Style Sheets disabled.Read more about Web Standards at Reactive.

News

 

Nexans First-Half Year Results 2009

30 Jul 2009

  • Organic decrease of 16.4% in cable businesses in the first half  but activity stabilised in the second quarter compared with the first
  • Operating margin holding up at 5.3%
  • Resilience of Energy infrastructures confirmed
  • Faster restructuring efforts in response to the crisis
  • Group net debt reduced by more than $NZD428 million dollars in the first half
  • Withdrawal from electrical wire business in Canada

Paris, July 28, 2009 – The Nexans Board of Directors chaired by Frédéric Vincent met on July 27 to examine the Group’s consolidated financial statements for the first half of 2009:

  • Sales for the first half of 2009 amounted to $NZD5,390 million dollars, or $NZD2,085 million dollars at constant non-ferrous metal prices*. This figure:
    • reflects a 12.1% slide compared with the same period a year earlier at the current consolidation scope, which includes the contribution of companies acquired from Madeco and Intercond;
    • reflects a 16.4%** decrease at a constant scope for the cable businesses alone, as Europe and North America being the areas mainly affected by the crisis;
    • is the result of second quarter 2009 sales being 1.7% higher than in the first quarter, for cable businesses, reflecting a stabilized situation.
       
  • Operating margin amounts to $NZD235 million dollars compared with $NZD471 million dollars in the first half of 2008. Operating margin as a percentage of sales (on constant sales) is 5.3% compared with 9.1% for the same period a year earlier. Operating margin as a percentage of sales for Energy infrastructures is close to that of the first half of 2008.

  • Non-recurrent restructuring costs amount to $NZD113 million dollars. The Group is stepping up the pace at which it is aligning its organization and production plant capacity to the market conditions.

  • The pre-tax loss for the first half of the year is $NZD77 million dollars. It includes $NZD201 million dollars for non-recurring expenses. In addition to restructuring, it includes a cost of $NZD87 million dollars relating to copper, without any cash effect, resulting, as in 2008, from the drop in the average weighted cost of non-ferrous metals reflected in the accounts.

  • The net loss (Group share) is $NZD122 million dollars given the tax expense of $NZD40 million dollars. Excluding the exceptional items mentioned above, the Group would have reported a net profit for the first half.

  • The Group’s net financial debt is down by $NZD480 million dollars compared with December 31, 2008, to $NZD668 million dollars at June 30, 2009. The ratio of net debt to total shareholders’ equity is 18.2%. 

(*) To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure the underlying sales trend, Nexans also calculates its sales using a constant price for copper and aluminum.

(**) 2008 sales on the basis of comparable data correspond to constant metal sales, recalculated after adjustments for comparable scope and exchange rates. The exchange effect on sales at constant non-ferrous metal prices amounts to a negative 48 million euros, while the comparable scope effect amounts to a negative 21 million euros.

Note: All figures have been converted from Euro to New Zealand Dollars at a rate of 2.144.


Back to articles