Nexans: sales rise 8.2% in the 2004 third quarter (at constant metal prices and exchange rates)

Paris, October 18, 2004 - Nexans today announced sales of 1,186 million euros for the third quarter of 2004. Sales for the nine months to September 30 came to 3,564 million euros.

At constant non-ferrous metal prices*, third quarter sales totaled 1,007 million euros, compared to 931 million euros for the third quarter of 2003, representing growth of 8.2% at constant exchange rates. Sales for the nine months climbed to 3,036 million euros, an increase of 7.1% (+6.2% at constant perimeter) compared to the same period in 2003. Sales were up across all business lines and geographical areas. Third quarter sales figures do not include the companies acquired in July (Liban Cables and Cabloswiss), which will be consolidated at year end.

Based on the recovery seen in all business sectors, Nexans maintains its full-year forecasts of organic sales growth (+5%) and operating margin (3%).

Consolidated sales*
* To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure its effective sales evolution, Nexans also calculates its sales using a constant price for copper and aluminum.

in millions of euros

At current metal prices

At constant metal prices

At constant metal prices and exchange rates
 

2003

2004

2003

2004
2003

2004

Third quarter
Second quarter
First quarter
Total at September 30

965
1,014
978
2,957

1,186
1,287
1,091
3,564

944
999
945
2,888

1,007
1,077
952
3,036
931
988
914
2,833

1,007
1,077
952
3,036

Sales by business sector (at constant metal prices and exchange rates*)

in millions of euros

Q3

First nine months

 

2003

2004

2003

2004

Energy
Distribution
Telecom
Electrical wires
Other
Total

527
65
126
211
2
931

559
71
144
230
3
1,007

1,543
195
393
699
3
2,833

1,663
208
422
734
8
3,036

  • Energy (main activities – at constant metal prices and exchange rates):
in millions of euros
Q3.03
Q3.04
Infrastructure
218
244
Building
177
180
Distribution
65
71
Industry
119
124

The cable market for infrastructure continued to expand, fueled by strong demand for high-voltage and umbilical cables and satisfactory growth in sales of medium and low-voltage cables in Europe.

In the building market, sales were uneven in Europe, primarily due to the sluggish business environment in Germany. Margins stabilized following an integration in sales prices of the rise in copper prices.

Distribution activities in Norway and Switzerland continued to post strong performances. These businesses, which essentially serve clients in the building sector, will in the future be reported together with the Group's building activities.

The sharp rise in sales of industrial cables and wires was chiefly driven by increased demand among clients in the automotive and shipbuilding markets.

  • Telecom (at constant metal prices and exchange rates)
in millions of euros  
Q3.03
Q3.04
Infrastructure
51
56
Private local and area networks (LAN)
47
58
Industry
28
30

This activity continues to benefit from the cost reduction measures introduced in the last two years.

Sales of telecom cables for infrastructure rose substantially, bolstered by the continued roll-out of ADSL internet services in Europe.

In private local area networks, the Group recorded a sharp rise in North American sales and saw the first signs of a turnaround in Europe.

  • Electrical wires: (at constant metal prices and exchange rates)
in millions of euros
Q3.03
Q3.04
Wirerod
107
124
Bare wires
25
29
Winding wires
79
77


Wirerod and Bare Wire sales continued to post satisfactory growth.

Despite the recovery in demand in Europe, overall Winding Wires sales were impacted by the sale of the US based Winding Wires activity.

Sales by geographical area

in millions of euros

Current metal prices

Constant metal prices

Constant metal prices
and exchange rates
 

Q3.03

Q3.04

Q3.03

Q3.04

Q3.03

Q3.04

Europe
North America
Asia
Rest of the world
Total

705
175
47
38
965

840
237
62
47
1,186

697
164
45
38
944

736
173
54
44
1,007

697
155
42
37
931

736
173
54
44
1,007

In Europe, high-voltage sales (cables and accessories) recorded by Norway, Belgium and Switzerland increased significantly. Sales in France resumed an upward course, thanks to the recovery in demand for private local area networks and the stabilization of sales in the Building activities. Sales of energy and telecoms cables for infrastructure also rose in Spain. By contrast, Germany experienced a difficult third quarter.

In North America, third quarter sales were up 12% over the same period last year, driven by strong sales of energy activities in Canada and copper cables for private local area networks in the United States.

In Asia, all countries contributed to a spectacular rise in sales (+29%).
Infrastructure expansion in developing countries also gave a significant boost (+19%) to sales in the Rest of the World.

 

Financial Calendar

  • October 21, 2004: Individual shareholders meeting in Bordeaux
  • February 3, 2005: Full-year results

                                    

Related Document

Your Contact

Angéline Afanoukoe Press relations
Phone +33 1 78 15 04 67
Angeline.afanoukoe@nexans.com
Michel Gédéon Financial Communication
Phone +33 1 78 15 05 41
michel.gedeon@nexans.com

About Nexans

Nexans is the worldwide leader in the cable industry. The Group brings an extensive range of advanced copper and optical fiber cable solutions to the infrastructure, industry and building markets. Nexans cables and cabling systems can be found in every area of people¿s lives, from telecommunications and energy networks, to aeronautics, aerospace, automobile, railways, building, petrochemical, medical applications, etc. With an industrial presence in 29 countries and commercial activities in 65 countries, Nexans employs 20. 000 people and had sales in 2004 of euros 4.9 billion. Nexans is listed on the Paris stock exchange.

http://www.nexans.com/