News Release

Highlights

• Reported revenues above range of management's guidance, adjusted earnings per share within management's guidance
• Generated $178.9 million of cash flow from operating activities; $544.0 million for the full year
• Extended $429.5 million of bond maturities to 2029

Fourth Quarter Results

Net sales for the fourth quarter of 2009 were $1,129.0 million, a decrease of $367.3 million, or 24.5%, compared to the fourth quarter of 2008 on a metal-adjusted basis. Before the impact of revenues from acquired businesses and $99.4 million related to the favorable impact of changes in foreign currency exchange rates, net sales for the fourth quarter decreased 29.6%. Volume based on metal pounds sold, without the impact of incremental volume from acquired businesses, decreased 7.3% in the fourth quarter of 2009 compared to 2008, and was up 0.2% compared to the third quarter of 2009.

Operating income before items was $31.2 million in the fourth quarter of 2009 compared to $76.4 million in the fourth quarter of 2008, a decrease of $45.2 million or 59.2%. The decrease in operating income was principally the result of a significant decline in prices in response to lower overall demand in many of the Company's end markets and lower capacity utilization, partially offset by lower selling, general and administrative expenses. Inventories were reduced by $130.7 million in the fourth quarter as the Company continued to balance working capital requirements with end market demand. Operating margin before items was 2.8% in the fourth quarter of 2009, a decrease of approximately 230 basis points from the operating margin of 5.1% in the fourth quarter of 2008 on a metal-adjusted basis.

Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, "Our diversified product offering, global reach, and continuous improvement efforts are serving the Company well at a time when factories around the world are running at half-speed. For much of this downturn, earnings have also been pressured by rising metal costs and difficulty passing these higher costs on to customers in a timely manner. Despite these challenges, the Company has continued to generate positive earnings before items and strong cash flow. Two areas of strength during the quarter were Venezuela and France. Our businesses in these countries have benefited from governmental investment in energy infrastructure and grid reinforcement. Spending by electric utilities in the United States however, continues to be a drag on our performance as a result of ineffective government policies, delays in projects to support grid reinforcement and alternative energy generation as well as the impact of lower electricity usage by the industrial base for the last two years. Iberian demand for electric utility and construction products is also down meaningfully."

Liquidity and Convertible Bond Exchange

In December of 2009, the Company issued $429.5 million of 4.5% convertible notes due 2029 in exchange for $464.4 million of its 1% convertible notes due 2012. The interest rate on the 2029 notes will step down to 2.25% in November 2019. The exchange represented approximately 97.8% of the 2012 notes outstanding prior to the exchange. Approximately $10.6 million of the 2012 notes remain outstanding. As a result of this exchange, cash interest expense will increase approximately $14.7 million annually and non-cash accreted interest expense (resulting from the bifurcation of the notes into their debt and equity components) will decrease approximately $24.0 million in 2010. This will result in a net increase in diluted earnings per share of approximately $0.13 in 2010 compared to 2009. While the Company was able to exchange for the 2012 notes at a discount, realizing a $34.9 million de-leveraging benefit, the Company has recognized a non-cash loss on the extinguishment of debt of $0.10 per share. This is due to the write-off of the unamortized fees related to the 2012 notes and the difference in the estimated fair value of the debt component of the 2012 notes as compared to their carrying value.

Net debt was $425.2 million at the end of the fourth quarter of 2009, a decrease of $339.2 million from the end of the third quarter of 2009. This decrease is partially due to the higher imputed equity value of the 2029 notes compared to the 2012 notes resulting principally from the longer dated nature of the 2029 notes. The decrease in net debt is also a result of positive earnings coupled with reductions in working capital more than offsetting capital expenditures. The Company continues to maintain adequate liquidity to fund operations, which could include increased working capital requirements as a result of higher metal costs, internal growth, and continuing product and geographic expansion opportunities.

Preferred Stock Dividend

In accordance with the terms of the Company's 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of approximately $0.72 per share. The dividend is payable on February 24, 2010 to preferred stockholders of record as of the close of business on January 31, 2010. The Company expects the quarterly dividend payment to be less than $0.1 million.

First Quarter 2010 Outlook

"All of our markets remain intensely competitive. In addition, metal prices escalated quickly in December and January, further squeezing margins as we try to recover these higher costs in the market. As we exited the fourth quarter, several of our earlier cycle product lines in the United States were beginning to experience some demand stabilization but still well below 2006 and 2007 peak levels. However, this is likely to be more than offset by a lack of investment and weak pricing for electric utility products. The alternative energy market remains well below the 2008 global peak with many projects on hold. Markets in Europe are broadly still in decline and likely will move lower due to aggressive pricing by competitors. Businesses in our Rest of World segment have declined at a relatively slower pace with pockets of strength in the Andean Region, Brazil, India and South East Asia, and should continue to outperform the developed economies. While we believe we are nearing the bottom in many markets and geographies, we continue to anticipate a weak global recovery. As a result, we expect capacity utilization and pricing to remain difficult throughout 2010. For the first quarter, the Company expects to report earnings before items in the range of $0.05 to $0.15 per share while revenues are expected to be approximately $1.15 to $1.20 billion," Kenny concluded. A reconciliation of expected GAAP earnings per share is as follows:

The above first quarter 2010 reconciliation of expected GAAP earnings per share to adjusted non-GAAP earnings per share does not include the estimated impact of the previously disclosed devaluation of the Venezuelan Bolivar. The Company has previously indicated that it expected to record a pre-tax charge in the first quarter of 2010 in the range of approximately $40 to $45 million. The Company is continuing to evaluate the overall impact of the devaluation.

Reconciliation of Non-GAAP Measures

In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we discuss in this earnings release earnings per share and operating income for the fourth quarter of 2009 and 2008 as adjusted for the impact of net last-in first-out (LIFO) and lower of cost or market (LCM) inventory accounting related items, non-cash convertible debt interest expense, and the non-cash loss on extinguishment of debt. These Company-defined adjusted measures are being provided because management believes they are useful in analyzing the underlying operating performance of the business. These measures may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to accounting principles generally accepted in the United States. A reconciliation of earnings per share as reported and operating income as reported to adjusted non-GAAP earnings per share and adjusted non-GAAP operating income follows:

General Cable will discuss fourth quarter results on a conference call and webcast at 8:30 a.m. ET, February 12, 2010. For more information please see our website at http://www.generalcable.com.

General Cable Corporation (NYSE:BGC), a Fortune 500 Company, is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, and communications markets. Visit our website at http://www.generalcable.com.

Risk Factors and Forward-Looking Statements

Certain statements in this press release, including, without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are forward-looking statements. Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors include the economic strength and competitive nature of the geographic markets that the Company serves; economic, political and other risks of maintaining facilities and selling products in foreign countries including the impact of significant fluctuations in the value of the U.S. dollar against foreign currencies and currency devaluations; changes in industry standards and regulatory requirements; advancing technologies, such as fiber optic and wireless technologies; volatility in the price of copper and other raw materials, as well as fuel and energy and the Company's ability to reflect such volatility in its selling prices; interruption of supplies from the Company's key suppliers; compliance with foreign and U.S. laws applicable to our international operations; potential adverse impact from environmental liabilities; risks from liabilities assumed in acquisitions; substantial indebtedness could adversely affect our business and financial condition; potential cross-defaults on our financing arrangements if we fail to comply with covenants and other provisions of financing arrangements; impact of a downgrade in our financial strength; the failure to negotiate extensions of the Company's labor agreements on acceptable terms; the Company's ability to increase manufacturing capacity and achieve productivity improvements; the Company's dependence upon distributors and retailers for non-exclusive sales of certain ofthe Company's products; pricing pressures in the Company's end markets; the Company's ability to maintain the uncommitted accounts payable or accounts receivable financing arrangements in its European operations; the impact of any additional charges in connection with plant closures and the Company's inventory accounting practices; the impact of certain asbestos litigation, unexpected judgments or settlements and environmental liabilities; the ability to successfully identify, finance and integrate acquisitions; the impact of terrorist attacks or acts of war which may affect the markets in which the Company operates; the Company's ability toretain key employees; the Company's ability to service debt requirements and maintain adequate domestic and international credit facilities and credit lines; the impact on the Company's operating results of itspension accounting practices; volatility in the market price of the Company's common stock all of which are more fully discussed in the Company's Report on Form 10-K as amended filed with the Securities and Exchange Commission on March 2, 2009as well as periodic reports filed with the Commission.

SOURCE: General Cable Corporation

General Cable Corporation
Michael P. Dickerson, 859-572-8684
Vice President of Finance and Investor Relations