Prysmian Takes a Hit from Western Link Project

The Board of Directors of Prysmian S.p.A. has approved the Group’s consolidated results for the first quarter of 2014 (which are not subject to audit).

Group Sales amounted to €1,579 million compared with €1,669 million in the first quarter of 2013, posting organic growth of +3.2%, assuming the same group perimeter and excluding metal price and exchange rate effects.

Adjusted net profit was €12 million, which is 69.2% lower comparing to the same period last year.

Sales at their Energy cables and systems business also recorded growth of +3.6% to €1,343 million.

“The 2014 first-quarter witnessed the first signs of volumes recovery with positive organic sales growth after several quarters of contraction. However, results have been adversely affected by technical problems encountered in the manufacture of the submarine cable for the Western HVDC Link project in the United Kingdom,” explains CEO Valerio Battista.

“Our technicians are obviously already seeking to overcome these difficulties and resume work on this very complex project, the most technologically advanced one ever for a large-scale electrical interconnection project. The negative impact of these issues has been of €37 million on first-quarter operating income. Apart from these adverse effects, even profitability would have improved slightly, despite negative exchange rate effects. For FY 2014, the Group is forecasting Adjusted EBITDA in the range of €530-€580 million (€600 – €650 million excluding the negative impact of the Western Link project estimated at €70 million for the full year),” Battista concluded.

Press Release, May 09, 2014; Image: prysmiangroup