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2012 Full-Year ResultsFeb 7, 2013
Operational improvement in the second half despite worsened economic conditions
- 2012 sales stable at constant scope, metal prices and exchange rates
- High voltage underwater cable business improved in the second half
- 2012 operating margin rate at 4.2%
- Net debt of 606 million euros at December 31, 2012
- Proposed dividend of 0.50 euro per share
- Launch of a study of a plan to realize 70 million euros in savings over time
- 2015 operating margin target: 350 to 400 million euros
Paris, February 7, 2013 - The Nexans Board of Directors meeting on February 6, 2013, under the chairmanship of Frédéric Vincent, approved the Financial Statements for 2012.
Referring to the 2012 results, Frédéric Vincent, Chairman and CEO said:
“In 2012, numerous strategic initiatives were implemented, such as the acquisition of AmerCable in the United States and Yanggu in China, as well as the launch of the project to build a plant in South Carolina for land high voltage cables. Nonetheless, they occurred against the backdrop of worsened economic conditions in the second half of 2012 and implementation difficulties for submarine high voltage energy contracts, and the 2012 results did not meet expectations. The Group did however keep its main balance sheet items under control.
For 2013, the economic context in certain parts of the world is unclear (Brazil and Australia) or even subject a recession (Europe). High voltage business will see its profitability improve without, however, reaching a level considered normal. Given that the action plans launched or under review will produce only marginal effects in 2013, the Group is currently expecting operational profitability to be roughly the same as in 2012.
In this context, the Group would like to adopt the means to protect and restore its competitiveness, contain its costs and pursue the rationalization of its organization. Consequently, a study will be launched of a plan having as its objective, savings in the order of 70 million euros in Europe over time relating to land high voltage cables, special cables for industry and administrative structures in general. The Group will table the subject with the relevant employee representative bodies in the third quarter of 2013.
Additionally, at its January 14 meeting, the Board of Directors approved the main directions set in the 2013-2015 strategic plan in terms of markets, products and industrial policy. The actions included in this strategic plan are designed to reach an objective for the Group, assuming an unchanged economic climate, of raising its operating margin by 2015 to 350 to 400 million euros and to approximately double its return on capital employed.”
Download the 2012 full-year results press release here bellow in PDF for 2012 key figures, analysis by division , geographical area, customer and consolidated financial statements.