Nexans Third Quarter Results 2008
29 Oct 2008
- Renewed strong increase in organic growth in the cables business*: up 7.4% in the third quarter 2008 compared with a 7.2% rise in the first semester 2008.
- Organic growth for the whole year is expected to be higher than the initial 6% target.
- Confirmation of the Group's capacity to attain a higher operating margin than in 2007 despite the uncertain economic situation.
Nexans has annouced sales of $NZ3641 million (at actual non-ferrous prices) for the third quarter of 2008. At constant non-ferrous metal prices**, the quarter's sales stood at $NZ2516 million.
Organic growth in the third quarter in the cables business is up 7.4%*** (up 3.8% if Electrical Wires is included. The Group is gradually winding down production to address only internal needs). At end September, growth was up 7.2%, comparable to the level in first half-year 2008.
For the full year 2008, the Group anticipates posting strong revenue growth, due to the continuing high level of business in energy infrastructure cables and strong sales in the main industrial cable segments, despite an expected drop in the Building business.
As for profitability, the Group should attain a higher operating margin in 2008 than the previous year, as forecast, due to the sustained profitability of its businesses.
* Cables and accessories, excluding electrical wires.
** To neutralise the impact of variations in the price of non-ferrous metals, and therefore measure the actual growth of its business, Nexans also establishes its sales at constant copper and aluminium prices.
*** 2007 sales for comparable data correspond to sales at constant metal prices, adjusted for the impact of exchange rates and scope.
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