2006 Results: Boosted by solid growth and rising profits, Nexans launches a new strategic plan for 2007-2009 and enters a new phase of its development

  • Sales at constant metal prices a) b): 4.442 billion euros (+8.2% organic growth)
     
  • Operating margin c) : 260 million euros (+40%)
     
  • 2005-2007 strategic plan objectives reached one year in advance
     
  • New 3-year strategic plan operating margin objective of 7.5% for 2009
     
  • Withdrawal from the winding wires sector
     

 

Paris, January 31, 2007 - The Nexans Board of Directors, which met on January 30, 2007, with Gérard Hauser as Chairman, has approved the accounts for 2006.

  • Sales in 2006 totaled 7.489 billion euros compared with 5.449 billion euros in 2005. Sales calculated at constant non-ferrous metal prices b) amounted to 4.442 billion euros compared with 4.263 billion euros in 2005, and reflect organic growth of 8.2%.
     
  • Operating margin c) reached 260 million euros, an increase of 40% compared with 2005. The operating margin rose from 4.4% to 5.8% at constant metal prices. Operating margin was 3.5% of sales at actual metal prices.
     
  • As a result of a change in the method of recording the core exposure for metal inventory (see financial results presentation slides referred to at the end of this release) and taking into account 48 million euros in restructuring costs and the 149 million euro gain from the sale of distribution activities in Switzerland (Electro-Matériel SA), operating profit amounted to 363 million euros compared with 291 million euros in 2005.
     
  • Financial income was -69 million euros compared with -36 million euros in 2005, due in particular to the rise in interest charges associated with the increase in the average level of debt and the rise in interest rates as well as the payment of a 6.4 million euro adjustment to the bearers of OCEANE 2004-2009 bonds in connection with their conversion.
     
  • Tax costs amounted to 48 million euros compared with 36 million euros in 2005, mainly due to improved results of a number of subsidiaries. Tax costs were nonetheless reduced by the recognition of deferred tax assets and the partial exemption from taxation of the gain on the sale of Electro-Matériel in Switzerland.
     
  • The Group share of net income was 241 million euros compared with 163 million euros in 2005 (after restatement to take into account the change in accounting method in 2006).
     
  • Net financial debt increased by 261 million euros, reaching 633 million euros at December 31, 2006. This increase is linked to the rise in copper prices (+50% in 2006) and the acquisition of Olex. Nexans continued to maintain healthy financial ratios, with a 40% net debt/ shareholders' equity ratio at December 31, 2006.

These results led the Board of Directors to propose the payment of a dividend of 1,20 euro per share, a 20 % increase compared to 2006 (1 euro), for decision by the General Shareholders' Meeting.

a) Olex, consolidated from December 31, 2006, is included in the balance sheet but not included in either the sales figures or the results
b) 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.
c) A management indicator used by the Group to measure its operational performance

Continued concentration on cable businesses

Nexans has announced the signing of a deal with Superior Essex for the sale of its winding wires activities in Canada and in China for 32 million euros. These agreements relate to the Simcoe plant in Canada and Nexans' 80% majority interest in Nexans Tianjin Magnet Wires and Cables company. (see separate press release issued today)

Success of the 2005-2007 strategic plan and launch of a new 3-year plan

The Group has achieved the objectives set in its 2005-2007 strategic plan a year earlier than predicted. In February 2005, Nexans was aiming for organic growth of approximately 4% a year and an operating margin of approximately 5% by 2007. At the end of 2006, the average annual growth rate of the business was 6.7% over the period 2005-2006, while the operating margin at constant metal prices reached 5.8% in 2006.

The Group had also committed to increasing sales in its priority sectors such as energy and transport infrastructures, automotive, automation or shipbuilding. Two years after this plan was launched, Nexans' sales in its priority sectors showed an increase of 30% (at current consolidation scope) and an increase of more than 40% in sales outside Europe.

Boosted by this result, Nexans is pursuing its expansion, today announcing a new 3-year strategic plan for 2007-2009 which aims to make Nexans a more profitable company, less sensitive to economic cycles and focused on a smaller number of business sectors with strong synergies between them. Following on from the existing strategy, Nexans will rely on three core business sectors: energy infrastructure, OEM and construction markets.

A new phase of its development

Commenting on the 2006 results, Nexans Chairman and CEO Gérard Hauser said: "Our results are highly satisfactory since we reached our 2005-2007 objectives a year ahead of time. Despite particularly high raw material prices in 2006, the company has achieved strong growth and rising profits. We have also stepped up our presence in the developing regions and pursued our development in high added value specialty products. On the basis of these results, we are today announcing the launch of a new strategic plan for 2007-2009, the main objective of which is to make Nexans a global player in the infrastructure, OEM and construction markets with energy cables as its engine for growth. After refocusing our conductor activities on our own requirements, this plan should enable us, by 2009, to achieve sales of 5 billion euros at constant metal prices, a 7.5% operating margin, a return on capital employed (at 2006 metal prices) approaching 13% and positive net cash flow.

For 2007, we are aiming for an increase in sales at constant metal prices of approximately 4% (taking into account the decision to reduce our exposure to the electrical wires sector), an improvement in our operating margin (the level of which is always difficult to determine at the beginning of the year), and a neutral cash flow >[1] situation".

These objectives, set on the basis of sales calculated at constant metal prices, presuppose that the worldwide economic conditions observed in 2006, particularly in the emerging countries and in the oil industry, will continue unabated through the period of our new strategic plan.

 

Detailed analysis by business sector and geographical areas

2006 sales breakdown by business sector

(in millions of euros)
At constant metal prices
 
2005
2006
Sales

Sales at constant exchange rates

Energy

Telecom

Electrical Wires

4,263

4,301

2,883

631

777

4,442

4,442

2,983

648

802

 Key figures

 

(in millions of euros)
2005**
2006
% change

EBITDA *

281

355

+26%

Operating margin:

Energy

Telecom

Electrical Wires

Other

171

25

6

(16)

233

48

(4)

(17)

+36%

+92%

N/A

- 6%

Operating margin

186

260

+39.8%

Net income (Group share)

163

241

+47.9%

Diluted earnings per share (in euros)

6.63

8.93

+34.7%

 

*  Operating margin before depreciation
** Restated to take into account the change in the method of recording the metal inventory core exposure 

Analysis of sales* and operating margin by business sector

(* Sales at constant metal prices and exchange rates)

Energy: organic growth of 11%

Sales amounted to 2,983 million euros, an increase of 11.3% (at constant exchange rates and consolidation scope) compared with 2005.

Operating margin totaled 233 million euros compared with 171 million euros in 2005. This significant increase is mainly due to the recovery of OEM cables and to the highly favorable conditions that have benefited low voltage cables for

construction markets.

Growth was particularly high (+7.1% at constant exchange rates and consolidation scope) in underground infrastructure cables in both Europe and the USA, underpinned by a number of national investment programs and large contracts.

In OEM cables, growth reached 9.4% at constant exchange rates and consolidation scope, thanks in particular to the buoyancy of the shipbuilding and off-shore oil platform markets. Nexans also experienced growth in cable harnesses for both the automotive (driven by the success of the high-end automotive industry in Germany) and rail industries.

Finally, in the cables for construction markets, Nexans recorded growth of 12.6% at constant exchange rates and consolidation scope. In Europe, demand for cables for buildings remained steady. In North America, profit margins were maintained despite the decline in volumes observed in the second half of the year.


Telecom: operating margin doubled

Telecom sales increased by 1.7% (at constant exchange rates, metal prices, and consolidation scope) to 648 million euros.

In public network cables, there was a downturn in business compared with 2005 (-2.5% at constant exchange rates and consolidation scope). Profitability increased as a result of reorientation of the plants and sustained optical fiber cable activity.

In the private network cables (LAN) sector, Nexans recorded a 1.7% increase in sales at constant consolidation scope and exchange rates. The operating margin increased as a result of industrial restructuring and the development of Category 6 and 7 cables.

Overall, the operating margin for telecommunications cables rose from 25 million euros in 2005 to 48 million euros in 2006.

Electrical Wires

Sales in Electrical Wires activities totaled 802 million euros in 2006 increasing by 3.1% from 777 million euros in 2005, at constant exchange rates, metal prices, and consolidation scope. There was a slowdown in the second half of the year due to the combined effect of falling demand and Nexans' decision to gradually reduce its exposure to copper, giving priority to meeting its own requirements.

There was an operating loss of 4 million euros compared with a 6 million euro profit in 2005 taking into account an exceptional reserve.

Analysis of sales and operating margin by geographical areas

 

(in millions of euros)

2005
2006
 
Sales*
OM
OM/Sales
Sales*
OM
OM/Sales

Europe

2,983

108

3.6%

3,021

140

4.6%

North America

777

42

5.4%

813

64

7.9%

Asia Pacific

259

11

4.2%

277

19

6.9%

Rest of the World

283

25

8.9%

331

37

11.1%

Total

4,301

186

4.4%

4,442

260

5.8%

* At constant metal prices and exchange rates

Sales rose appreciably in all geographical areas.


Europe: profitability boosted by energy businesses

Sales totaled 3,021 million euros, an increase of 8.5% compared with 2005 (at constant consolidation scope, exchange rates and metal prices). The operating margin rose from 108 million euros in 2005 to 140 million euros in 2006.

In a favorable economic climate, the continued development of higher added value products, coupled with industrial rationalization and cost reduction initiatives, has led to the significant recovery of the majority of businesses in the region.

North America:  increased operating margin

Sales totaled 813 million euros, a 4.7% increase from 777 million euros in 2005 at constant exchange rates, consolidation scope and metal prices.

The operating margin reached 64 million euros compared with 42 million euros in 2005. In this area, the Group has the advantages of a strong position in strategic markets and high returns on its activities for the construction sector.

Asia Pacific: more than 33% profitable growth in China

Sales continued to increase in 2006, reaching 277 million euros, a 6.3% increase compared to 259 million euros in 2005 at constant consolidation scope, exchange rates and metal prices.

The operating margin for the region rose significantly compared with 2005 as a result of selective marketing, giving priority to quality and a policy of stable prices.

Rest of the World: buoyant markets and industrial reorganization

Sales in the Rest of the World rose significantly to 331 million euros in 2006, a 16.9% increase from 283 million euros in 2005 at constant exchange rates, consolidation scope and metal prices.

This increase is evidence of the buoyancy of domestic markets, particularly in Turkey and Morocco, but also of the success of converting certain production sites to serve more dynamic market segments, such as instrumentation cables for the oil industry and automotive cables.


Financial calendar
  • March 15, 2007: Individual shareholders’ information meeting in Marseille*
  • April 26, 2007: Individual shareholders’ information meeting in Brest*
  • April 26, 2007: Publication of 2007 first-quarter sales
  • May 10, 2007: Annual Shareholders’ Meeting
  • May 15, 2007: Payment of dividend
  • May 15, 2007: Individual shareholders’ information meeting in Toulouse*
  • July 25, 2007: Publication of 2007 first-half sales and results

(* dates given as a rough guide only)

A full set of slides for the presentation of the results, including the results by business sector, as well as a detailed presentation of the accounts are available on the Nexans Web site at www.nexans.com

About Nexans

With energy cables as its core, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables (copper, aluminum and optical fiber) and cabling systems. The Group’s strategy is focused on infrastructure, industrial and construction markets. Nexans develops solutions for industry sectors such as shipbuilding, oil and gas, nuclear, automotive, electronics, aeronautics, handling and automation and includes an offering dedicated to public and private (local area) telecommunications networks.

With an industrial presence in more than 30 countries and commercial activities worldwide, Nexans employs 21,000 people and had sales in 2006 of 7.5 billion euros. Nexans is listed on the Paris stock exchange, compartment A of the Eurolist of Euronext. More information on http://www.nexans.com/

Appendices
  1. Consolidated income statement according to IFRS standards
  2. Consolidated balance sheet according to IFRS standards
  3. Consolidated statement of cash flows according to IFRS standards
  4. Information by sector

Consolidated income statement under IFRS

 

2006

2005

2004

in millions of euros

 

Restated (**)

Published

Restated (**)

Published

Net sales

7,489

5,449

5,449

4,732

4,732

Metal price effect *

(3,046)

(1,186)

(1,186)

(727)

(727)

Net sales at constant metal prices *

4,442

4,263

4,263

4,005

4,005

Cost of sales

(6,802)

(4,825)

(4,825)

(4,176)

(4,176)

Cost of sales at constant metal prices*

(3,756)

(3,640)

(3,640)

(3,449)

(3,449)

Gross profit

687

623

623

556

556

Administrative and selling expenses

(372)

(386)

(386)

(377)

(377)

R&D costs

(55)

(52)

(52)

(47)

(47)

Operating margin *

260

186

186

133

133

Core exposure impact ***

107

93

 

43

 

Asset impairment losses and reversal for negative goodwill

(99)

(32)

(4)

7

7

Fair value change on non ferrous metal derivatives

(7)

33

33

-

-

Gains or losses on disposal of assets

151

34

34

8

8

Restructuring costs

(48)

(24)

(24)

(36)

(36)

Operating Income

363

290

225

156

113

Cost of financial debt (gross)

(45)

(26)

(26)

(19)

(19)

Income from cash and cash equivalents

12

7

7

5

5

Other financial expenses

(36)

(17)

(17)

(22)

(22)

Share in net income of associates

3

(0)

(0)

(0)

(0)

Income before taxes

297

254

189

120

77

Income taxes

(48)

(36)

(26)

(28)

(19)

Net income from continuing operations

249

218

163

92

58

Net income from discontinued operations

(4)

(46)

(46)

5

5

Consolidated net income

244

172

117

97

63

Of which Group share

241

163

108

92

58

Of which minority interests

3

9

9

5

5

           

Net income from continuing operations per share (in euros)

         

- Basic earnings per share

10.44

9.90

7.30

4.15

2.53

- Diluted earnings per share

9.10

8.52

6.36

3.80

2.33

Net income from discontinued operations (in euros)

         

- Basic earnings per share

(0.19)

(2.18)

(2.18)

0.24

0.24

- Diluted earnings per share

(0.17)

(1.89)

(1.89)

0.22

0.22

Net income, Group share (in euros)

         

- Basic earnings per share

10.25

7.73

5.12

4.39

2.77

- Diluted earnings per share

8.93

6.63

4.46

4.02

2.55

* Business management indicator used to measure the Group's operating performance 

** The 2006 financial statements were drawn up following the change in method related to non ferrous metal inventories recognition. Impacts of this change are disclosed in columns "restated" for 2005 and 2004.

*** Impact related to "core exposure" revaluation at weighted average cost.


Consolidated balance sheet under IFRS

 
2006
2005
2004
after IAS 32-39 *

at December 31, in millions of euros

Restated (**)

Published

Restated (**)

Published

ASSETS

         

Goodwill

253

82

88

80

80

Intangible assets

16

14

14

7

7

Property, plant and equipment

815

778

942

788

925

Investment in associates

22

18

18

1

1

Other investments

50

56

56

35

35

Deferred tax assets

100

53

76

38

51

Other non-current assets

-

-

-

-

-

NON-CURRENT ASSETS

1,256

1,001

1,194

950

1,100

Inventories and work in progress

1,328

874

563

713

500

Amounts due from customers on construction contracts

77

47

47

27

27

Trade receivables and related accounts

1,272

1,105

1,105

836

836

Current tax receivables

86

63

63

51

51

Other financial current assets

105

155

155

67

67

Cash and cash equivalents

287

117

117

121

121

Assets and group of assets held for sale

60

81

81

135

135

CURRENT ASSETS

3,214

2,441

2,130

1,951

1,738

TOTAL ASSETS

4,470

3,442

3,324

2,900

2,837

LIABILITIES

         

Capital stock

25

24

24

23

23

Additional paid-in capital

1,127

1,019

1,019

1,014

1,014

Treasury stock

-

(28)

(28)

(28)

(28)

Retained earnings

158

(40)

(40)

(152)

(152)

Net income, Group share

241

226

108

121

58

Equity - Group share

1,551

1,083

1,083

915

915

Minority interests

39

77

77

70

70

TOTAL EQUITY

1,589

1,278

1,160

1,049

986

Accrued pension and retirement obligations

336

353

353

363

363

Provisions

36

14

14

18

18

Convertible bonds

247

117

117

116

116

Other long-term financial debt

7

5

5

14

14

Deferred tax liabilities

67

33

33

32

32

Other non-current payables

-

-

-

(0)

(0)

NON-CURRENT LIABILITIES

693

522

522

543

543

Provisions

97

83

83

91

91

Other current financial debt

665

369

369

286

286

Customers' deposits and advances

39

18

18

16

16

Amounts due to customers on construction contracts

71

70

70

36

36

Trade payables and related accounts

917

692

692

505

505

Current tax payables

86

64

64

58

58

Other current financial liabilities

290

308

308

252

252

Liabilities related to group of assets held for sale

22

39

39

65

65

CURRENT LIABILITIES

2,187

1,642

1,642

1,308

1,308

TOTAL LIABILITIES AND EQUITY

4,470

3,442

3,324

2,900

2,837

* Nexans has applied IAS 32 and IAS 39 since January 1, 2005

** The 2006 financial statements were drawn up following the change in method related to non ferrous metal inventories recognition. Impacts of this change are disclosed in columns "restated" for 2005 and 2004.


Consolidated statement of cash flows under IFRS

 
2006
2005
2004

in millions of euros

Restated (**)

Published

Restated (**)

Published

Net income, Group share

241

163

108

92

58

Minority interests

3

9

9

5

5

Depreciation and amortization

178

129

101

77

77

Interest expense

45

26

26

19

19

Core exposure impact *

(107)

(93)

-

(43)

-

Other restatements ***

(70)

(11)

(21)

(7)

(16)

Cash flow from operations before interests and taxes ****

290

223

223

143

143

Decrease (increase) in accounts receivable

(181)

(404)

(404)

(47)

(47)

Decrease (increase) in inventories

(308)

(64)

(64)

(117)

(117)

Increase (decrease) in accounts payable and accrued expenses

242

310

310

75

75

Other assets and liabilities

-

(7)

(7)

(1)

(1)

Income tax paid

(58)

(46)

(46)

(25)

(25)

Changes in depreciations on current assets and accrued contract costs

12

(14)

(14)

3

3

Net change in current assets and liabilities

(294)

(225)

(225)

(112)

(112)

Net cash from operating activities

(3)

(2)

(2)

31

31

Proceeds from disposals of tangible and intangible fixed assets

6

10

10

19

19

Capital expenditures

(171)

(130)

(130)

(97)

(97)

Decrease (increase) in loans

2

(10)

(10)

(0)

(0)

Cash expenditures for acquisitions of consolidated companies, net of cash acquired

(365)

(28)

(28)

(113)

(113)

Cash proceeds from sale of previously consolidated companies, net of cash sold

201

116

116

16

16

Net cash used in investing activities

(327)

(42)

(42)

(175)

(175)

Net cash flow change after investing activities

(330)

(44)

(44)

(144)

(144)

Proceeds from / (repayment of) long-term borrowings

276

(9)

(9)

141

141

Proceeds from / (repayment of) short-term borrowings

282

77

77

43

43

Proceeds from issue of shares

8

7

7

1

1

Financial interest paid

(45)

(23)

(23)

(17)

(17)

Dividends paid

(23)

(12)

(12)

(9)

(9)

Net cash from financing activities

497

40

40

160

160

Net effect of currency translation differences

1

3

3

2

2

Impact of change in scope of discontinued activities

1

(3)

(3)

-

-

Net increase (decrease) in cash and cash equivalents

170

(4)

(4)

17

17

 

-

-

-

-

-

Cash and cash equivalents at the beginning of period

117

121

121

104

104

Cash and cash equivalents at the end of period

287

117

117

121

121

* Impact related to "core exposure" revaluation at weighted average cost.

** The 2006 financial statements were drawn up following the change in method related to non ferrous metal inventories recognition. Impacts of this change are disclosed in columns "restated" for 2005 and 2004.

*** Of which gains on disposal of Electro-Material (150 million euros), income tax reclassification (48 million euros), fair value changes of derivatives (16 million euros), impairments of goodwills and reversal of negative goodwills (17 million euros), cost of stock options plans (3.4 million euros).

**** In addition, the Group uses the concept of "Cash Flows from operations" which excludes restructuring cash expenditures (40 million euros in 2006), and includes financial interests and income tax paid.


Information by business segment

 

in millions of euros

Electrical wires

Energy

Telecom

Other
(or non-allocated)
Inter-business elimination *

Total Group

December 31, 2006

           

Net sales at current metal prices

3,438

4,298

781

9

(1,038)

7,489

Net sales at constant metal prices

1,133

2,983

648

9

(331)

4,442

Operating margin

(4)

233

48

(18)

-

260

Depreciation and amortization

(10)

(62)

(19)

(4)

-

(95)

Impairment losses

(54)

(61)

(9)

(4)

-

(128)

Reversal of impairment losses

-

19

8

-

-

27

EBITDA **

6

296

67

(14)

-

355

Restructuring costs

(5)

(19)

(24)

(1)

-

(48)

             

Capital expenditures

14

137

17

4

-

171

Property, plant and equipment, net

23

628

143

20

-

815

             

Total segment assets

662

2,448

396

41

-

3,547

Total segment liabilities

416

732

100

50

 

1,298

             

Investment in associates

22

-

-

 

-

22

Share in net income of associates

3

-

-

 

-

3

Staff (number of employees)

1,140

15,952

3,276

782

-

21,150

December 31, 2005 restated

           

Net sales at current metal prices

1,991

3,342

677

10

(573)

5,449

Net sales at constant metal prices

1,056

2,865

630

10

(298)

4,263

Net sales at constant metal prices and 2006 exchange rates

1,076

2,883

631

10

(298)

4,301

Operating margin

6

171

25

(16)

-

186

Depreciation and amortization

(10)

(61)

(20)

(4)

-

(95)

Impairment losses

(0)

(14)

(22)

(18)

-

(55)

Reversal of impairment losses

4

15

3

-

-

21

EBITDA **

15

232

45

(12)

-

280

Restructuring costs

(4)

(12)

(6)

(3)

-

(24)

             

Capital expenditures

6

102

20

1

-

129

Property, plant and equipment, net

96

498

146

38

-

778

             

Total segment assets

562

1,936

398

36

-

2,933

Total segment liabilities

281

639

112

48

 

1,079

             

Investment in associates

17

1

-

 

-

18

Share in net income of associates

-

-

-

 

-

-

Staff (number of employees)

1,162

14,157

3,473

792

-

19,584

December 31, 2004 as published

           

Net sales at current metal prices

1,669

2,874

588

11

(409)

4,732

Net sales at constant metal prices

1,094

2,604

561

11

(265)

4,005

Net sales at constant metal prices and 2005 exchange rates

1,126

2,653

566

11

(276)

4,080

Operating margin

7

118

17

(10)

-

133

Depreciation and amortization

(23)

(57)

(19)

(4)

-

(103)

Impairment losses

-

-

-

-

-

-

Reversal of impairment losses

2

-

-

-

-

2

EBITDA **

29

175

36

(6)

-

236

Restructuring costs

(6)

(20)

(10)

-

-

(36)

             

Capital expenditures

4

68

18

6

-

96

Property, plant and equipment, net

149

563

159

54

-

925

             

Total segment assets

328

1,479

343

44

-

2,196

Total segment liabilities

121

539

97

44

-

801

             

Investment in associates

-

1

-

-

-

1

Share in net income of associates

-

-

-

-

-

-

Staff (number of employees)

1,178

14,316

3,525

830

-

19,849

             

* Inter-business eliminations comes for the most part from the upstream Electrical Wires sector

** Operating margin excluding depreciation and amortization on tangible and intangible fixed assets

 


  Information by geographical area

 

in millions of euros

France

Germany

Other Europe

North America

Asia and Pacific

Rest of the world

Total Group

December 31, 2006

             

Net sales at current metal prices (before inter-segment eliminations)

3,112

911

2,175

1,745

435

519

-

Inter-segment sales

(937)

(59)

(354)

(2)

(6)

(50)

-

Net sales at current metal prices

2,175

852

1,821

1,743

429

469

7,489

Net sales at constant metal prices

1,037

582

1,402

813

277

331

4,442

Operating margin

33

33

72

63

19

39

260

Capital expenditures

30

18

64

24

6

30

171

Property, plant and equipment, net

158

105

235

88

139

91

815

Total segment assets

1,180

396

962

305

395

309

3,547

Staff (number of employees)

3,858

2,707

7,807

1,960

2,459

2,359

21,150

December 31, 2005 restated

             

Net sales at current metal prices (before inter-segment eliminations)

2,065

692

1,846

1,153

302

348

-

Inter-segment sales

(592)

(43)

(293)

(1)

(3)

(26)

-

Net sales at current metal prices

1,473

649

1,553

1,152

299

322

5,449

Net sales at constant metal prices

1,024

553

1,412

753

247

275

4,263

Net sales at constant metal prices and 2006 exchange rates

1,024

553

1,406

777

259

283

4,301

Operating margin

6

27

73

41

11

28

186

Capital expenditures

18

22

52

12

14

12

129

Property, plant and equipment, net

165

121

213

125

86

68

778

Total segment assets

874

363

860

365

220

250

2,933

Staff (number of employees)

3,823

2,685

7,766

1,835

1,270

2,205

19,584

December 31, 2004 as published

             

Net sales at current metal prices (before inter-segment eliminations)

1,844

617

1,609

956

243

239

-

Inter-segment sales

(489)

(32)

(235)

-

(3)

(18)

-

Net sales at current metal prices

1,356

585

1,374

956

240

221

4,732

Net sales at constant metal prices

1,072

531

1,291

697

214

200

4,005

Net sales at constant metal prices and 2005 exchange rates

1,072

531

1,306

726

232

213

4,080

Operating margin

0

13

68

31

10

12

133

Capital expenditures

24

15

28

7

15

7

96

Property, plant and equipment, net

245

155

262

136

64

63

925

Total segment assets

568

301

753

247

146

181

2,196

Staff (number of employees)

4,066

2,794

7,927

1,802

1,166

2,094

19,849

Net sales at current metal prices by geographical market

in millions of euros

France

Germany

Other Europe

North America

Asia and Pacific

Rest of the world

Total Group

Year 2006

987

852

2,512

1,729

512

896

7,489

Year 2005

740

616

1,957

1,127

407

601

5,449

Year 2004

619

554

1,809

950

350

450

4,732



[1] Cash flow after changes in working capital, capital expenditure and dividends.

Related Document

Your Contact

Michel Gédéon Financial Communication
Phone +33 1 78 15 05 41
michel.gedeon@nexans.com
Jean-Claude Nicolas Corporate Communication
Phone +33 (0) 1 73 23 84 51
jean-claude.nicolas@nexans.com
Jean-Marc Bouleau Financial Communication
Phone + 33 (0)1 73 23 84 61
jean_marc.bouleau@nexans.com
Pascale Strubel Corporate Communication Department
Phone + 33 (0)1 73 23 85 28
pascale.strubel@nexans.com
Angéline Afanoukoe Press relations
Phone +33 1 78 15 04 67
Angeline.afanoukoe@nexans.com

About Nexans

With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry and building markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear, automotive, electronics, aeronautics, handling and automation. With an industrial presence in more than 30 countries and commercial activities worldwide, Nexans employs 21,000 people and had sales in 2006 of 7.5 billion euros. Nexans is listed on the Paris stock exchange, compartment A of the Eurolist of Euronext. More information on www.nexans.com