Nexans Financial Information for 2007 First Quarter
19 Apr 2007
Nexans achieves a remarkable performance with organic growth of 15% of its cable businesses* (excluding electrical wires).
Paris, April 17, 2007 - Nexans today announced its 2007 first quarter sales of A$2,960 million (at actual non-ferrous metal prices**). Excluding the electrical wires business where the reduction in activity has been programmed by the Group, growth was 15.%.
This strong organic growth of sales was accompanied by a notable increase in operating margin compared with the first quarter of 2006.
Consolidated sales by business sector
Sales figures are now presented according to the classification adopted in the new 2007-2009 strategic plan published in January.
Energy Infrastructure: high level of activity
Demand for energy infrastructure cables remained very strong. Sales grew over 11% on the basis of comparable data during the first quarter. This growth was seen mainly in sales of accessories and high voltage cables.
Industry: strong development of priority sectors
Up 17.3% on the basis of comparable data, sales of special cables for large industrial equipment manufacturers accelerated worldwide, with particularly vigorous growth in the Shipbuilding and Oil & Gas sectors.
Building: strong organic growth and high margins
Sales in the building sector in the first quarter of 2007 continued at the same pace as in the second half of 2006 with organic growth of 17%. Profit margins continued to improve with sales volumes substantially the same in Europe as in the last quarter of 2006, and were slightly better in North America in the stated period.
Telecom Infrastructures: acceleration of sales
Telecom sales increased by approximately 22% on the basis of comparable data during the first quarter of 2007, as a result of positive developments in the niche markets for optical fiber cables as well as increasing sales in the telecommunications copper cable industry, in particular in Asia and originating from Spain.
Private Network (LAN): further increase in sales
LAN cable activities recorded growth of 17.6%, following the same trends observed during the last quarter of 2006 (in terms of price and volumes).
Sales by geographical areas
Sales rose in all geographical areas.
The acquisition of Olex was finalised in December 2006 and resulted in strong growth in the Asia-Pacific area (+145%) following the integration of Olex. Excluding Olex, the Asia-Pacific area recorded organic growth for cable businesses of 13.7%.
During the first quarter of 2007, sales in the cable businesses in North America only grew by 3.1%, due to temporary closure of a production site dedicated to energy networks, which is currently starting up again.
On the basis of comparable data, cable business sales increased by 16.6% in Europe and by 22.1% in the Rest of the World area.
Consolidated sales by business sector at current metal prices
Consolidated sales by geographical area at current metal prices
About Nexans
With energy as the basis of its development, Nexans, the worldwide leader in the cable industry, offers an extensive range of cables and cabling systems. The Group is a global player in the infrastructure, industry and building markets. Nexans addresses a series of market segments from energy, transport and telecom networks to shipbuilding, oil and gas, nuclear automotive, electronics, aeronautics, handling and automation. With an industrial presence in more than 30 countries and commercial activities worldwide, Nexans employs 21,000 people and had sales in 2006 of A$12.3 billion. Nexans is listed on the Paris stock exchange, compartment A of the Eurolist of Eurotext. For more information, visit www.nexans.com
*Cables and associated products (accessories), excluding electrical wires
**At actual metal prices, first quarter 2006 sales were A$2,719 million (see table above)
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