Nexans: power cables stand up well in a difficult economic climate

Paris, October 16, 2002 � Nexans (Paris: NEX.PA) today announced third-quarter sales of 1,039 million euros. Sales for the first 9 months of the year were 3,267 million euros.

Based on a constant non-ferrous metals price [1] , third-quarter sales total 1,008 million euros, against 1,077 million euros (-6.4%) for the third quarter of 2001. For the first 9 months of the year, sales reached 3,098 million euros, down 8.8% compared to the same period last year (9% based on a comparable Group structure).

The third quarter confirms the trends that emerged during the first half of the year, principally characterized by the strong deterioration of the telecom market and a fall in industrial capital expenditure.

Comparative consolidated sales

in millions of euros

At actual metal price

At constant metal price

 

2001

2002

2001

2002

Third quarter

Second quarter

First quarter

First 9 months total

1,140

1,303

1,233

3,676

1,039

1,147

1,081

3,267

1,077

1,201

1,119

3,397

1,008

1,072

1,018

3,098

 

Sales at constant metal price per division

in millions of euros

3rd quarter

First 9 months

 

2001

2002

2001

2002

Energy

Telecom

Electrical wires

Distribution and other

Total

542

204

251

80

1,077

544

142

250

72

1,008

1,626

666

856

249

3,397

1,610

441

819

228

3,098

  • Energy:  (main activities)
in millions of euros  Q3/01 Q3/02
Infrastructures 224 216
Buildings/Construction 205 197
Industry 92 111

The quarter is marked by a good performance of cables for infrastructure markets where the outlook remains favorable, and by a downturn in cable sales for industrial construction in the face of a sharp fall in companies� capital expenditure. The improvement in Industry cables segment activities is attributed to a catch-up effect from the previous year, rather than indicative of an upturn in the economy.

  • Telecom:
in millions of euros Q3/01 Q3/02
Infrastructures 91 60
Private local area networks (LAN) 65 56
Industry  48 26

The Telecom division experienced a stabilization of activity for infrastructure markets relative to the previous quarter and the continued deterioration in the market for special cables aimed at telecom equipment manufacturers (Industry segment).

  • Electrical Wires:
in millions of euros Q3/01 Q3/02
Wirerod 124 133
Electrical wires 26 26
Winding wires 100  91

The good performance of wirerod activity has compensated for the persistently low demand in the winding wires sector.

Outlook for 2002

The Group continues to be affected by the deteriorating economic environment in the Western world.

In this unclear economic climate, Nexans is maintaining its objective of achieving income from operations for the second half of 2002 that is slightly higher than or equal to that of the first half of the year and is continuing action already in progress to:

  • Control the amount of capital employed (to generate cash)
  • Pursue the restructuring programs already begun, particularly in telecom cables, to lower the Group�s breakeven point.

The Group is also pursuing its share buyback program.

Financial calendar

Publication of 2002 sales and income: January 28, 2003

 

[1] 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 (1,500 euros/metric ton and 1,200 euros/metric ton respectively).

 

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 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 28 countries and commercial activities in 65 countries, Nexans employs 17,500 people and had sales in 2001 of euros 4.8 billion. Nexans is listed on the Paris stock exchange. More information on www.nexans.com