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2013 Full-Year ResultsFeb 11, 2014
Performance adversely affected by the morose economic environment.Initial benefits from strategic initiatives.
- Operating margin of 171 million euros or 3.6% of sales at constant metal prices. After adjustments for non-recurring impacts, margin of 141 million euros or 3% of sales;
- Net loss (Group share) of 333 million euros, reflecting the recognition of restructuring provisions and costs and net asset impairment for
310 million euros in total. In this context, no dividend will be proposed to the Annual Shareholders' Meeting;
- Net debt of 337 million euros, including the impact of a 284 million euro rights issue carried out in November 2013. Excluding this impact, net debt remained stable year on year;
- Initial effects recorded resulting from the launch of strategic initiatives aimed at transforming the Group;
- Operating margin expected to increase in 2014.
- 2015 plan revised: weighted average annual growth over 2014-2015 of 4.5% to 5.5% of sales at constant metal prices and in 2015, an operating margin of 5.1% to 5.7% and return on capital employed above 9% taking into account current market conditions;
- Nexans Board of Directors requests that the strategic plan be implemented with determination. The Board unanimously confirms its confidence in the management team led by Frédéric Vincent to implement it.
Paris, February 11, 2014 - At its meeting on February 10, 2014, the Nexans Board of Directors, chaired by Frédéric Vincent, approved the Group's financial statements for 2013.
Commenting on the perspectives, Frédéric Vincent, Chairman and CEO, said:
«Prospects for 2015 are for a significant increase in the Group's performance, even if they are lower than the initial plan due in particular to market changes.
This future progress depends on the rollout of numerous strategic initiatives, the initial benefits of which are feeding through in our improved competitiveness, lower variable costs and the turnaround in certain businesses. This is particularly the case for the submarine transmission cables sector, where we have already made a very good start to the performance improvement process, both from an operational perspective and in terms of backlog.
In addition, the reorganization project aimed at restoring the Group's competitive edge in Europe that was presented to the employee representative bodies on October 15, 2013 is progressing: the opinion of the European Works Council was received in early December 2013, and agreements have been signed with employee representatives in two countries, while negotiations and consultations are ongoing in the three other countries concerned by the project.
All of these measures are being implemented within the framework of a strengthened governance structure. This includes a new position of Chief Operating Officer, who has been put in charge of all of the Group's operating activities, and the creation of a Transformation Program Office designed to monitor the rollout of the Group's various strategic initiatives.
In 2014, the Group therefore expects to see an increase in its operating margin. In addition, the implementation of the reorganization measures – notably the restructuring plans – would have an impact on the net debt (not including the effect of the potential fine that may be imposed by the EU competition authorities).”
Download the 2013 full year results press release here bellow in PDF for 2013 key figures, analysis by division , geographical area, customer and consolidated financial statements.