Italy: Prysmian Releases Q3 Results

The Board of Directors of Prysmian S.p.A. has approved today the Group’s consolidated results for the first nine months of 2012.

“The nine-month results show an overall stability in sales and above all a marked improvement in profitability, mainly thanks to synergies from the integration with Draka,” explains CEO Valerio Battista . “For the third consecutive quarter in 2012, the Group has reported growth in its profitability indicators, consolidating the recovery started in 2011. On the commercial front, during the last few months we have been awarded some of the world’s biggest contracts for power transmission systems, taking our order book to the record level of €2.5 billion at 31 October 2012.”

Group Sales amounted to €5,930 million. Assuming the same group perimeter and excluding metal price and exchange rate effects, the organic growth was -0.5%. The Group has generally succeeded in offsetting the effects of the persistent difficulties in some European markets thanks to the contribution of major projects for submarine power lines, where it is world leader, and to greater geographic diversification. The strong upturn in demand in North America (+10.9%) as well as positive signs in South America (+1.3%) have allowed the Group to minimise the impact of the downturns in EMEA, especially in Central and Southern Europe, which reported a -2.2% and in Asia Pacific (-3.3%).

Group Adjusted EBITDA climbed to €468 million, up 9.8% from the pro-forma figure of €426 million for the first nine months of 2011, also reporting an improvement in margin to 7.9% of sales (7.1% in first nine months 2011). The improvement in profitability is attributable to the good performance of the Submarine and Industrial businesses in Energy and of the entire Telecom segment. The contribution of overhead cost reductions achieved through synergies with Draka has also played a crucial role in improving profitability and the integration with Draka is generally proceeding faster than expected.

Group EBITDA4 amounted to €402 million, a clear improvement on the figure of €148 million in 2011 (consolidating Draka from 1 March 2011). EBITDA 2011 reflected the negative impact of €260 million in nonrecurring expenses (of which €199 million in provisions for the antitrust investigations), compared with €66 million in the first nine months of 2012.

Group Adjusted operating income rose to €349 million, an increase of +11.2% from the pro-forma figure of €314 million for the first nine months of 2011. Amortisation and depreciation charges increased on the corresponding nine months last year due to the full impact on the first nine months of 2012 of higher amortisation and depreciation charges resulting from the increase in Draka’s asset values (following the application of Purchase Price Accounting with effect from 1 March 2011).

Group Operating income was a profit of €295 million compared with a loss of €53 million in 2011 (consolidating Draka from 1 March 2011).

Net finance income and costs, including the share of income/(loss) from associates, reported a negative balance of €85 million, slightly down from the consolidated figure of €86 million for the first nine months of 2011.

Adjusted net profit increased by 15.5% to €194 million from €168 million in the first nine months of 2011 (consolidating Draka from 1 March 2011). The reported net result climbed to a positive €149 million from a negative €159 million in the first nine months of 2011 (consolidating Draka from 1 March 2011).

Net financial position at the end of September 2012 amounted to €1,446 million, compared with €1,064 million at 31 December 2011 (€1,389 million at 30 September 2011), having been particularly affected by the following factors:

– positive cash flows from operating activities (before changes in Net Working Capital) of €406 million;
– negative impact of €460 million from working capital increase;
– payment of €57 million in taxes;
– net operating investments of €89 million;
– receipt of €6 million in dividends;
– purchase of the remaining Draka shares under the squeeze-out procedure for €9 million;
– cash outlays of €26 million for acquisitions;
– payment of €97 million in net finance costs;
– distribution of €45 million in dividends.

[mappress]

Press release, November 8, 2012; Image: Prysmian