Nexans’s Net Sales for 2011 Reach 6.920 Billion (Germany)

The Nexans Board of Directors meeting on February 7, 2012, chaired by Frédéric Vincent, approved the Financial Statements for 2011.

Net sales for 2011 totaled 6.920 billion euros compared with 6.179 billion euros in 2010. At constant non-ferrous metal prices 1) , the figure is 4.594 billion euros compared with 4.309 billion euros in 2010.

At constant exchange rates and scope, business reported growth of 6.5% 4) across the entire Group. The second half of the year was marked by ongoing growth in business for all Group activities with organic growth of 3.9% and 5.9% respectively in the third and fourth quarters of 2011 compared with the same periods a year earlier.

The operating margin totaled 256 million euros, that is, 5.6% of sales at constant non-ferrous metal prices, compared with 4.8% in 2010. Profitability rose in the second half driven by the ongoing strong growth in low and medium voltage energy infrastructure business, Industry, Building and Telecom infrastructure business.

The increased profitability of these segments was offset by a softer performance in power transmission business as a consequence of the political situation in the Middle-East (in Libya in particular) and of the postponement of the installation of a submarine cable in Northern Europe.

The 2011 operating loss is -48 million euros (compared with an operating profit of 195 million euros in 2010). This result reflects in particular restructuring costs, asset depreciations and a 200 million euros reserve relating to a fine that may be imposed on Nexans following the announcement of the statement of objections received on July 5, 2011, from the European Commission’s Competition Department for anti-competitive behavior.

The net financial charge came to 106 million euros compared with 84 million euros in 2010 and the tax charge to 31 million euros versus 26 million euros in 2010.

As a consequence, the net income (Group share) for 2011 totaled a negative 178 million euros. It was a positive 82 million euros at December 31st, 2010.

The Board of Directors will put to the General Shareholders’ Meeting, called in the first half of 2012, a proposal to pay a dividend of 1.1 euros per share for 2011.

The consolidated net debt was 222 million euros at December 31st, 2011, compared with 144 million euros a year earlier. In 2011, the Group generated cash flow from operations in progress. At the same time, the Group maintained its focus on investing in high-potential market segments, especially energy infrastructure, for which extruded submarine cable production capacity has virtually doubled. Business growth has generated an increase in the working capital requirement in absolute value, but posted a relative decline at year end (17% of sales at December 31st, 2011 compared with 18.4% at June 30, 2011).

Referring to the 2011 results, Frédéric Vincent, Chairman and CEO said: «Despite a troubled macro-economic environment in Europe and in the United States during second-half, the activity of the Group’s various businesses continued to grow in the third and fourth quarters of 2011. This enables Nexans to report results in line with its guidance. In 2011, Nexans pursued its expansion with strategic initiatives, such as the agreement to acquire a majority participation in the Medium and High Voltage power cable business of Shandong Yanggu Cables in China.

 In this context and despite an uncertain environment, we are approaching 2012 with confidence in the Group’s capacity to grow further, should the current economic environment remain the same. Initiatives in the areas of industrial rationalization, the Group’s redeployment to growth areas and businesses, and the reorganization of our European operations will contribute positively to 2012».

[mappress]

Offshore WIND staff, February 08, 2012; Image: nexans