Nexans: 1st quarter 2002 sales

Paris, April 22, 2002 - Nexans' Board of Directors met on April 19 under the chairmanship of Gérard Hauser.

2001 financial statements and dividend

The Board approved the Group's financial statements for 2001, which were in line with the figures announced on February 13:

  • Sales totaled 4.777 billion euro. At constant non-ferrous metal price, sales came to 4.467 billion euro, up 2.4% on a comparable basis.
  • Operating profit totaled 139 million euro.
  •  Net income amounted to 30 million euro.

The capital increase reserved for employees and authorized by the Board of Directors on November 16, 2001 has been finalized and 111,503 new shares have been created. Nexans' share capital following this operation and after cancellation of the shares acquired through the share buyback program, now stands at 23,121,472 shares.

Based on the above results, the Board decided to propose a total dividend of 9.9 million euro, i.e. 0.43 euro per share, plus "avoir fiscal", to the shareholders for approval, at the Annual General Meeting to be held on June 25, 2002. The dividend payment date will be July 4, 2002.

Sales � 1st quarter 2002

The Board also noted the trend in Group sales during the first quarter of 2002:

Q1.02

Q1.01

millions of euros

Q4.01

1,080

1,233

Sales

1,104

1,018

1,119

Sales
(at constant metal price)

1,071

515

512

Energy

563

144

219

Telecom

170

283

302

Electrical wires

246

76

86

Distribution & other

92


At constant metal price, sales declined by 9% (and by 11.3% on a comparable basis) from the year-earlier figure, and by 5% compared to the fourth quarter of 2001.

Sales by sector (at constant non-ferrous metal price)

  • Energy  (main activities)
millions of euros Q1.02 Q1.01      Q4.01
Infrastructure     190 167 241
Building 194  207 196
Industry     112 113 104

Sales in the Energy Division totaled 515 million euro, unchanged from the year-earlier figure.

This stability reflects the increase in sales of medium- and high-voltage cables for the infrastructure market and the improvement of sales in Italy, offset by the tighter market for low-voltage cables in the European building sector and special cables in France.

The industrial turnaround in the German special cables activity is underway.

  • Telecom
millions of euros Q1.02 Q1.01 Q4.01
Infrastructure 53 91 82
Building 56  77 53
Industry 35 51 35

Sales in the Telecom Division fell to 144 million euro by 34% compared to the first quarter of 2001 and 15% compared to the last quarter of 2001, reflecting the highly depressed situation in this market.

Infrastructure sales reflect the combined effect of three factors:
  • the relative resilience of sales of copper cables for local loops, boosted by the expansion of ADSL in developed countries,
  • the lack of major export contracts,
  • the highly depressed fiber cable market.

Sales of LAN cables for the building sector reflect the stagnation in the United States market, and the sudden slow-down in the European market compared to the 1st quarter of 2001. However, energetic restructuring measures in the United States resulted in a sharp improvement in operating margins.

The decline in sales of industrial cables is mainly tied to the slowdown in the aerospace industry coupled with the lower level of orders from telecom equipment companies.

  • Electrical wires
millions of euros Q1.02 Q1.01 Q4.01
Wirerod   145 148 129
Bare wires 34  36 27
Winding wires 104 118 91

Sales in the Electrical Wires Division totaled 283 million euro, down 6% from  the 1st quarter of 2001, but still reflect an improvement in each product line compared to the end of 2001.


Outlook

In view of the above factors, the sales for the first half of 2002 should represent the low point in the Group's sales trends. Operating profit as of June 30 should remain positive, despite the negative contribution of the Telecom Division.

The implementation of the cost-cutting programs announced in February 2002 has begun, and corresponding restructuring provisions amounting to between 40 million and 60 million euro are foreseen for the June 30, 2002 financial statements. As a result, it is expected that the net income will be negative.

Drawing on the solid sales performance of the Energy Division boosted by two substantial orders for umbilicals and high-voltage cables, plus the anticipated upturn in the Electrical Wires segment as well as the initial impact of restructuring, the Group should be able to improve operating profit in the second half of the year.

The Group is also pursuing its policy of tight financial control, continuing to reduce its working capital requirements from 1st quarter 2001 and keeping its capital expenditures below the level of depreciation.

Financial calendar
  • 25 June 2002: Shareholders meeting
  • 22 July 2002: 2002 1st Half results

 

 

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