HIGHLAND HEIGHTS, Ky.--(BUSINESS WIRE)--Oct. 29, 2014--
General Cable Corporation (NYSE: BGC) today reported results for
the third quarter ended September 26, 2014 and announced actions to
refine its strategic focus, improve operational performance and address
management succession.
Strategic and Management Highlights
-
Company to simplify global portfolio and reduce operational
complexity by focusing on core strategic operations in North America,
Latin America and Europe; plans to exit all of its Asia Pacific and
African manufacturing operations
-
Company to commence wide-ranging search for successor to
President and CEO Gregory B. Kenny; Mr. Kenny to continue in role
during search and is expected to become Chairman of the Board upon
appointment of new CEO
-
Board of Directors to add another operations-experienced
independent director
Third Quarter Highlights
-
Adjusted earnings per share was $0.30 and adjusted operating
income was $55 million
-
Reported loss per share was $2.55 and reported operating loss
was $79 million
-
Strong progress on restructuring program with approximately $60
million or 80% of the initiatives to generate annual savings of $75
million announced through the third quarter
-
Announcement of planned actions in Europe and Colombia
anticipated to generate $48 million of annual savings
-
Company maintains substantial global liquidity of $800 million
(excluding Venezuela), including $400 million of availability under
the Company’s North American and European based credit facility
-
Reconfirms adjusted operating cash flow guidance of $135 million
for 2014
John E. Welsh, III, Chairman, said, “The Board has concluded its
extensive review of the Company’s strategic alternatives and operational
structure, and has determined that the best way to maximize value to
shareholders in the current global environment is to simplify our
geographic portfolio, reduce operational complexity and focus on
delivering increased returns from our core strategic operations in North
America, Latin America and Europe. We believe these actions will
optimize the Company’s asset base and sharpen the Company’s strategic
focus on its core assets, while retaining a meaningful level of exposure
to developing economies that may offer future growth opportunities.”
Gregory B. Kenny, President and Chief Executive Officer, said, “We are
making excellent progress on our previously announced restructuring
program but, given the persistently uneven global demand and pricing
environment, we have decided to accelerate and expand our efforts. As we
exit our manufacturing operations in Asia Pacific and Africa, we will
step up our efforts to improve returns from our businesses in North
America, Latin America and Europe where we maintain leading market
positions, economies of scale, breadth of product and technical
expertise. There are a number of global businesses centered in our core
footprint. We will continue to serve our international customers as we
have always done from these locations. We believe the fundamental
changes we are announcing today will better position the Company to
benefit from future energy, infrastructure and construction investment
in our core strategic markets.”
The Board was assisted in its strategic review by its financial advisor
J.P. Morgan. The Company is developing a divestiture plan for its Asia
Pacific and African assets and Peter A. Campbell, Executive Vice
President and Chief Executive Officer of General Cable Asia Pacific,
will direct these operations during the divestiture process. The
operations in Asia Pacific and Africa represent annual revenue of
approximately $1.0 billion on a consolidated basis.
CEO transition plan
General
Cable also announced that, consistent with its ongoing focus on
succession planning, its Board has formed a search committee to identify
the Company’s next Chief Executive Officer and has retained an executive
search firm to assist in the process. Current President and CEO, Gregory
B. Kenny, will continue during the search and is expected to become
Chairman of the Board upon the appointment of a new CEO.
Plans to expand Board of Directors
The
Board has commenced a process to identify and appoint an additional
operations-experienced independent director. The Company has engaged an
executive search firm to assist in the process and has already
identified potential candidates with strong operational experience in
energy infrastructure, manufacturing and/or related industries.
Significant progress on restructuring program
The
Company has made significant progress on its restructuring program,
including the announcement of planned actions in Europe and Colombia
which together are expected to generate approximately $48 million of
ongoing annual savings and result in one-time pre-tax charges in the
range of $130 million, including $40 million of cash. The estimated
costs of the program are tracking according to plan with anticipated
total pre-tax costs of $180 million, or approximately 90% of the total
estimated pre-tax costs, announced through the third quarter. Overall
the restructuring program is also tracking according to plan with
approximately $60 million or 80% of the initiatives to generate annual
savings of $75 million announced through the third quarter. While
savings are beginning to be realized in the second half of 2014, the
Company expects approximately $30 to $40 million of incremental savings
to be realized in 2015 increasing to the full targeted annual savings of
$75 million beginning in 2016. The cash payback of the restructuring
program is expected to be 1.3 years.
“The announcement of planned actions in Europe represents substantial
progress as we plan to consolidate and realign our businesses to drive
the improvement of underperforming assets. In Colombia, we are
consolidating and streamlining our assets, further strengthening our
platform for future success in one of the most attractive long-term
growth markets in Latin America. In addition, we are continuing our work
on the previously announced facility closures in India, Peru and North
America which are advancing according to plan. Production has ceased in
India and Peru and we are in the process of unwinding the capital
employed,” Kenny said.
Summary financial results third quarter
Year over year Q3 2014 versus Q3 2013
Net
sales for the third quarter of 2014 of $1,472 million were down 6% as
compared to the third quarter of 2013. Excluding shipments of aerial
transmission cables in North America and Brazil, global unit volume for
the third quarter of 2014 was flat year over year as demand in North
America and ROW helped to offset the impact of demand weakness
throughout Europe including Spain. Adjusted operating income for the
third quarter of 2014 of $55 million increased $11 million or 25% from
$44 million in the third quarter of 2013 (excluding Venezuela from both
periods) principally due to results in the Company’s North American
electric utility, electrical infrastructure and rod mill and strip
aluminum businesses as well as the Company’s restructuring/cost out
initiatives.
Q3 2014 versus Q2 2014
Net
sales for the third quarter of 2014 decreased 4% as compared to the
second quarter of 2014. Excluding aerial transmission cables in North
America and ROW, global unit volume decreased 3% principally due to
seasonal demand patterns and weaker demand in Europe. Excluding
Venezuela from both periods, adjusted operating income for the third
quarter of 2014 was down $2 million or 4% from the second quarter of
2014 as the performance of the Company’s North American businesses and
the benefit of restructuring activity in ROW helped to partially offset
the impact of lower production and installation activity of submarine
turnkey projects in the third quarter.
Other
income / expense
Other expense was $17 million in the
third quarter of 2014, which principally reflects losses of $16 million
due to the remeasurement of the local balance sheet in Venezuela as the
SICAD I rate depreciated during the third quarter. Mark to market gains
of $2 million on derivative instruments accounted for as economic hedges
that are used to manage currency and commodity risk (principally on the
Company’s project business globally) were offset by foreign currency
transaction losses of $3 million.
Liquidity - Excluding Venezuela
Net
debt was $1,359 million at the end of the third quarter of 2014, a
decrease of $14 million from the end of the second quarter of 2014. The
decrease in net debt is principally due to reductions in working capital
as a result of normal seasonal trends. The Company continues to maintain
substantial availability of $400 million under its North American and
European based credit facility with an additional $400 million of
liquidity around the world to fund operations and support the Company’s
restructuring program, quarterly dividend and the anticipated retirement
of the $125 million senior floating rate notes due in April 2015. In
addition, the Company recently received $20 million for the settlement
of disputed claims principally in connection with its submarine turnkey
project business, $15 million of which was received subsequent to the
third quarter.
Fourth Quarter and Full Year 2014 Outlook
(excluding Venezuela)
Revenues in the fourth quarter are
expected to be in the range of $1.425 to $1.475 billion. Global unit
volume is anticipated to be flat to up low single digits sequentially
principally due to aerial transmission cable shipments in North America
and Brazil. The Company anticipates adjusted operating income to be in
the range of $40 to $55 million for the fourth quarter. Adjusted
earnings per share are expected to be in the range of $0.15 to $0.30 per
share for the fourth quarter. The fourth quarter outlook does not
include the impact of Venezuela. The Company’s fourth quarter outlook
assumes copper (COMEX) and aluminum (LME) prices of $3.11 and $0.90,
respectively. Given the fourth quarter outlook, the Company expects
adjusted operating income in the range of $175 to $190 million for the
full year 2014. The Company continues to target adjusted operating cash
flow of $135 million for the full year 2014.
“Overall, our third quarter results and fourth quarter outlook reflect
the continuing uneven global demand and challenging pricing environment.
Putting aside fourth quarter seasonality, we are beginning to see some
signs of improvement in North America which continues to be a source of
relative stability. We are highly focused on our restructuring program
execution and delivering our cash flow targets as we tightly manage our
inventory over the final quarter of 2014 and into the new year,” Kenny
concluded.
Non-GAAP Financial Measures
Adjusted
operating income (defined as operating income before extraordinary,
nonrecurring or unusual charges and other certain items), adjusted
earnings per share (defined as diluted earnings per share before
extraordinary, nonrecurring or unusual charges and other certain items),
adjusted operating cash flow (defined as operating cash flows before
extraordinary, nonrecurring or unusual charges and other certain items)
and net debt (defined as long-term debt plus current portion of
long-term debt less cash and cash equivalents, other than cash and cash
equivalents held in Venezuela) are “non-GAAP financial measures” as
defined under the rules of the Securities and Exchange Commission.
These Company-defined non-GAAP financial measures are being provided
herein because management believes they are useful in analyzing the
operating performance of the business and are consistent with how
management reviews the underlying business trends. Use of these non-GAAP
measures may be inconsistent with similar measures presented by other
companies and should only be used in conjunction with the Company’s
results reported according to GAAP. Adjusted results and guidance
reflect the removal of the impact of our Venezuelan operations on a
standalone basis due to the ongoing economic and political uncertainty
in that country, principally driven by the foreign currency exchange
system, government-imposed profit caps/limitations and limited access to
U.S. dollars for the import of raw materials. However, we expect ongoing
operations in Venezuela to continue, and we cannot predict the amounts
of any future income or expenses we may incur relating to our Venezuelan
operations. Certain historical results of our Venezuelan operations on a
standalone basis are provided in the Third Quarter 2014 Investor
Presentation available on the Company’s website.
A reconciliation of adjusted operating income to reported operating
income and adjusted earnings per share to reported earnings per share
for the third quarter of 2014 and 2013 and the second quarter of 2014 is
set forth in the table below. With respect to the Company’s expected
fourth quarter and full year 2014 adjusted operating income, fourth
quarter adjusted earnings per share and full year 2014 adjusted
operating cash flow, the Company is not able to provide a reconciliation
of these non-GAAP financial measures to GAAP because it does not provide
specific guidance for the various extraordinary, nonrecurring or unusual
charges and other items. These items have not yet occurred, are out of
the Company’s control and/or cannot be reasonably predicted. As a
result, reconciliation of the non-GAAP guidance measures to GAAP is not
available without unreasonable effort and the Company is unable to
address the probable significance of the unavailable information.
A reconciliation of operating income and earnings per share to adjusted
non-GAAP operating income and earnings per share follows:
|
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|
3rd Quarter
|
|
|
2nd Quarter
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
|
|
Operating
|
|
|
|
Operating
|
|
|
|
|
Operating
|
|
|
In millions, except per share amounts
|
|
|
Income
|
|
EPS
|
|
Income
|
|
EPS
|
|
|
Income
|
|
EPS
|
As reported
|
|
|
$
|
(78.6
|
)
|
|
$
|
(2.55
|
)
|
|
$
|
42.9
|
|
|
$
|
0.11
|
|
|
|
$
|
14.1
|
|
$
|
(0.51
|
)
|
Adjustments to Reconcile Operating Income/EPS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash convertible debt interest expense
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.12
|
|
|
|
|
-
|
|
|
0.01
|
|
Mark to market (gain) loss on derivative instruments
|
|
|
|
-
|
|
|
|
(0.03
|
)
|
|
|
-
|
|
|
|
(0.06
|
)
|
|
|
|
-
|
|
|
(0.05
|
)
|
Legal and tax assessments
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4.8
|
|
|
|
0.05
|
|
|
|
|
-
|
|
|
-
|
|
Restructuring activities
|
|
|
|
94.1
|
|
|
|
1.94
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
34.7
|
|
|
0.64
|
|
Severance charges
|
|
|
|
29.7
|
|
|
|
0.61
|
|
|
|
0.7
|
|
|
|
0.01
|
|
|
|
|
1.5
|
|
|
0.02
|
|
Restatement, forensic and acquisition costs
|
|
|
|
2.5
|
|
|
|
0.03
|
|
|
|
1.0
|
|
|
|
0.01
|
|
|
|
|
3.7
|
|
|
0.05
|
|
Insurance Settlement
|
|
|
|
(5.0
|
)
|
|
|
(0.06
|
)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
Goodwill/intangible asset impairment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
2.1
|
|
|
0.03
|
|
Mexico impairment
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14.0
|
|
|
|
0.20
|
|
|
|
|
-
|
|
|
-
|
|
Brazil impairment
|
|
|
|
13.1
|
|
|
|
0.16
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
-
|
|
|
-
|
|
Venezuela (income)/loss
|
|
|
|
(0.8
|
)
|
|
|
0.18
|
|
|
|
(19.1
|
)
|
|
|
(0.25
|
)
|
|
|
|
1.1
|
|
|
(0.02
|
)
|
Effective tax rate adjustment (1)
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
|
-
|
|
|
0.12
|
|
Total Adjustments
|
|
|
|
133.6
|
|
|
|
2.85
|
|
|
|
1.4
|
|
|
|
0.09
|
|
|
|
|
43.1
|
|
|
0.80
|
|
Adjusted
|
|
|
$
|
55.0
|
|
|
$
|
0.30
|
|
|
$
|
44.3
|
|
|
$
|
0.20
|
|
|
|
$
|
57.2
|
|
$
|
0.29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
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(1)
|
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|
Reflects an adjusted effective tax rate of 40% for the second and
third quarters of 2014 and 45% for the third quarter of 2013
|
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|
|
|
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|
General Cable will discuss third quarter results on a conference call
that will be broadcast live at 8:30 a.m., ET, on October 30, 2014. The
live webcast of the Company’s conference call will be available in
listen only mode and can be accessed through the Investor Relations page
on our website at www.generalcable.com.
Also available on our website is a copy of an Investor Presentation that
will be referenced throughout the conference call.
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
and systems for the energy, industrial, specialty, construction and
communications markets. Visit our website at www.generalcable.com.
Cautionary Statement Regarding Forward-Looking
Statements
Certain statements in this press release are
forward-looking statements that involve risks and uncertainties, predict
or describe future events or trends and that do not relate solely to
historical matters. Forward looking statements include, among others,
expressed expectations with regard to the following: “believe,”
“expect,” “may,” “will,” “anticipate,” “intend,” “estimate,” “project,”
“plan,” “assume,” “seek to” or other similar expressions, although not
all forward-looking statements contain these identifying words. Actual
results may differ materially from those discussed in forward-looking
statements as a result of factors, risks and uncertainties over many of
which we have no control. These factors include, but are not limited to:
the economic strength and competitive nature of the geographic markets
that the Company serves; our ability to increase manufacturing capacity
and productivity; our ability to increase our selling prices during
periods of increasing raw material costs; our ability to service, and
meet all requirements under, our debt, and to maintain adequate domestic
and international credit facilities and credit lines; our ability to
establish and maintain internal controls; the impact of unexpected
future judgments or settlements of claims and litigation; impact of
foreign currency exchange rate fluctuations; impact of future impairment
charges; compliance with U.S. and foreign laws, including the Foreign
Corrupt Practices Act; our ability to implement and make appropriate,
timely and beneficial decisions as to when, how and if to purchase
shares under the repurchase program; our ability to achieve the
anticipated cost savings, efficiencies and other benefits related to our
restructuring program and other strategic initiatives and the other
risks detailed from time to time in the Company’s filings with the
Securities and Exchange Commission (“SEC”), including but not limited
to, its annual report on Form 10-K filed with the SEC on March 3, 2014,
and subsequent SEC filings. You are cautioned not to place undue
reliance on these forward-looking statements. General Cable does not
undertake, and hereby disclaims, any obligation, unless required to do
so by applicable securities laws, to update any forward-looking
statements as a result of new information, future events or other
factors.
TABLES TO FOLLOW
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|
General Cable Corporation and Subsidiaries
|
Consolidated Statements of Operations
|
(in millions, except per share data)
|
(unaudited)
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Fiscal Months Ended
|
|
|
Nine Fiscal Months Ended
|
|
|
|
September 26,
|
|
September 27,
|
|
|
September 26,
|
|
September 27,
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Net sales
|
|
|
$
|
1,471.7
|
|
|
$
|
1,557.1
|
|
|
|
$
|
4,433.1
|
|
|
$
|
4,759.9
|
|
Cost of sales
|
|
|
|
1,445.1
|
|
|
|
1,396.9
|
|
|
|
|
4,142.6
|
|
|
|
4,250.0
|
|
Gross profit
|
|
|
|
26.6
|
|
|
|
160.2
|
|
|
|
|
290.5
|
|
|
|
509.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
|
|
101.9
|
|
|
|
117.3
|
|
|
|
|
338.2
|
|
|
|
363.4
|
|
Goodwill impairment charge
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
155.1
|
|
|
|
-
|
|
Indefinite-lived intangible asset impairment charge
|
|
|
|
3.3
|
|
|
|
-
|
|
|
|
|
98.8
|
|
|
|
-
|
|
Operating income (loss)
|
|
|
|
(78.6
|
)
|
|
|
42.9
|
|
|
|
|
(301.6
|
)
|
|
|
146.5
|
|
Other income (expense)
|
|
|
|
(17.3
|
)
|
|
|
9.5
|
|
|
|
|
(111.4
|
)
|
|
|
(58.8
|
)
|
Interest income (expense):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
(28.5
|
)
|
|
|
(30.6
|
)
|
|
|
|
(85.6
|
)
|
|
|
(90.7
|
)
|
Interest income
|
|
|
|
0.8
|
|
|
|
1.7
|
|
|
|
|
3.0
|
|
|
|
4.7
|
|
|
|
|
|
(27.7
|
)
|
|
|
(28.9
|
)
|
|
|
|
(82.6
|
)
|
|
|
(86.0
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
(123.6
|
)
|
|
|
23.5
|
|
|
|
|
(495.6
|
)
|
|
|
1.7
|
|
Income tax (provision) benefit
|
|
|
|
4.5
|
|
|
|
(16.2
|
)
|
|
|
|
13.8
|
|
|
|
(29.9
|
)
|
Equity in net earnings of affiliated companies
|
|
|
|
0.3
|
|
|
|
0.9
|
|
|
|
|
0.9
|
|
|
|
1.5
|
|
Net income (loss) including noncontrolling interests
|
|
|
(118.8
|
)
|
|
|
8.2
|
|
|
|
|
(480.9
|
)
|
|
|
(26.7
|
)
|
Less: preferred stock dividends
|
|
|
|
-
|
|
|
|
0.1
|
|
|
|
|
-
|
|
|
|
0.3
|
|
Less: net income (loss) attributable to noncontrolling interest
|
|
|
5.4
|
|
|
|
2.4
|
|
|
|
|
(16.5
|
)
|
|
|
4.9
|
|
Net income (loss) attributable to Company common shareholders
|
|
$
|
(124.2
|
)
|
|
$
|
5.7
|
|
|
|
$
|
(464.4
|
)
|
|
$
|
(31.9
|
)
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per common share - basic
|
|
|
$
|
(2.55
|
)
|
|
$
|
0.11
|
|
|
|
$
|
(9.52
|
)
|
|
$
|
(0.64
|
)
|
Weighted average common shares - basic
|
|
|
|
48.7
|
|
|
|
49.2
|
|
|
|
|
48.8
|
|
|
|
49.5
|
|
Earnings (loss) per common share - assuming dilution
|
|
|
$
|
(2.55
|
)
|
|
$
|
0.11
|
|
|
|
$
|
(9.52
|
)
|
|
$
|
(0.64
|
)
|
Weighted average common shares - assuming dilution
|
|
|
|
48.7
|
|
|
|
50.7
|
|
|
|
|
48.8
|
|
|
|
49.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General Cable Corporation and Subsidiaries
|
Consolidated Statements of Operations
|
Segment Information
|
(in millions)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Fiscal Months Ended
|
|
|
Nine Fiscal Months Ended
|
|
|
|
September 26,
|
|
September 27,
|
|
|
September 26,
|
|
September 27,
|
|
|
|
2014
|
|
2013
|
|
|
2014
|
|
2013
|
Revenues (as reported)
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
644.1
|
|
|
$
|
663.2
|
|
|
|
$
|
1,884.1
|
|
|
$
|
2,074.7
|
|
Europe and Mediterranean
|
|
|
|
351.9
|
|
|
|
383.4
|
|
|
|
|
1,114.5
|
|
|
|
1,180.4
|
|
Rest of World
|
|
|
|
475.7
|
|
|
|
510.5
|
|
|
|
|
1,434.5
|
|
|
|
1,504.8
|
|
Total
|
|
|
$
|
1,471.7
|
|
|
$
|
1,557.1
|
|
|
|
$
|
4,433.1
|
|
|
$
|
4,759.9
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (metal adjusted) (1)
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
644.1
|
|
|
$
|
675.6
|
|
|
|
$
|
1,884.1
|
|
|
$
|
2,057.5
|
|
Europe and Mediterranean
|
|
|
|
351.9
|
|
|
|
386.5
|
|
|
|
|
1,114.5
|
|
|
|
1,164.1
|
|
Rest of World
|
|
|
|
475.7
|
|
|
|
513.9
|
|
|
|
|
1,434.5
|
|
|
|
1,475.7
|
|
Total
|
|
|
$
|
1,471.7
|
|
|
$
|
1,576.0
|
|
|
|
$
|
4,433.1
|
|
|
$
|
4,697.3
|
|
|
|
|
|
|
|
|
|
|
|
|
Metal Pounds Sold
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
135.6
|
|
|
|
141.7
|
|
|
|
|
404.6
|
|
|
|
437.8
|
|
Europe and Mediterranean
|
|
|
|
53.9
|
|
|
|
63.3
|
|
|
|
|
175.1
|
|
|
|
208.2
|
|
Rest of World
|
|
|
|
113.5
|
|
|
|
115.3
|
|
|
|
|
350.9
|
|
|
|
325.6
|
|
Total
|
|
|
|
303.0
|
|
|
|
320.3
|
|
|
|
|
930.6
|
|
|
|
971.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income (loss)
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
48.0
|
|
|
$
|
25.2
|
|
|
|
$
|
97.9
|
|
|
$
|
106.6
|
|
Europe and Mediterranean
|
|
|
|
(107.3
|
)
|
|
|
7.6
|
|
|
|
|
(97.1
|
)
|
|
|
(7.8
|
)
|
Rest of World
|
|
|
|
(19.3
|
)
|
|
|
10.1
|
|
|
|
|
(302.4
|
)
|
|
|
47.7
|
|
Total
|
|
|
$
|
(78.6
|
)
|
|
$
|
42.9
|
|
|
|
$
|
(301.6
|
)
|
|
$
|
146.5
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (loss) (2)
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
45.5
|
|
|
$
|
26.2
|
|
|
|
$
|
117.8
|
|
|
$
|
118.9
|
|
Europe and Mediterranean
|
|
|
|
(1.2
|
)
|
|
|
8.3
|
|
|
|
|
12.6
|
|
|
|
8.5
|
|
Rest of World
|
|
|
|
10.7
|
|
|
|
9.8
|
|
|
|
|
4.9
|
|
|
|
22.6
|
|
Total
|
|
|
$
|
55.0
|
|
|
$
|
44.3
|
|
|
|
$
|
135.3
|
|
|
$
|
150.0
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on Metal Adjusted Sales (3)
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
|
7.1
|
%
|
|
|
3.9
|
%
|
|
|
|
6.3
|
%
|
|
|
5.8
|
%
|
Europe and Mediterranean
|
|
|
|
-0.3
|
%
|
|
|
2.1
|
%
|
|
|
|
1.1
|
%
|
|
|
0.7
|
%
|
Rest of World
|
|
|
|
2.2
|
%
|
|
|
1.9
|
%
|
|
|
|
0.3
|
%
|
|
|
1.5
|
%
|
Total Company
|
|
|
|
3.7
|
%
|
|
|
2.8
|
%
|
|
|
|
3.1
|
%
|
|
|
3.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Capital Expenditures
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
11.1
|
|
|
$
|
7.0
|
|
|
|
$
|
27.0
|
|
|
$
|
23.8
|
|
Europe and Mediterranean
|
|
|
|
3.8
|
|
|
|
3.6
|
|
|
|
|
11.0
|
|
|
|
14.4
|
|
Rest of World
|
|
|
|
7.8
|
|
|
|
9.4
|
|
|
|
|
30.2
|
|
|
|
27.2
|
|
Total
|
|
|
$
|
22.7
|
|
|
$
|
20.0
|
|
|
|
$
|
68.2
|
|
|
$
|
65.4
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation & Amortization
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
|
$
|
10.9
|
|
|
$
|
11.2
|
|
|
|
$
|
33.8
|
|
|
$
|
33.6
|
|
Europe and Mediterranean
|
|
|
|
9.8
|
|
|
|
10.2
|
|
|
|
|
30.3
|
|
|
|
29.9
|
|
Rest of World
|
|
|
|
10.9
|
|
|
|
12.4
|
|
|
|
|
33.5
|
|
|
|
37.1
|
|
Total
|
|
|
$
|
31.6
|
|
|
$
|
33.8
|
|
|
|
$
|
97.6
|
|
|
$
|
100.6
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues by Major Product Lines
|
|
|
|
|
|
|
|
|
|
|
Electric Utility
|
|
|
$
|
477.9
|
|
|
$
|
513.1
|
|
|
|
$
|
1,448.0
|
|
|
$
|
1,522.1
|
|
Electrical Infrastructure
|
|
|
|
397.2
|
|
|
|
399.7
|
|
|
|
|
1,197.0
|
|
|
|
1,248.8
|
|
Construction
|
|
|
|
368.1
|
|
|
|
393.2
|
|
|
|
|
1,072.0
|
|
|
|
1,209.2
|
|
Communications
|
|
|
|
146.1
|
|
|
|
175.3
|
|
|
|
|
428.7
|
|
|
|
554.4
|
|
Rod Mill Products
|
|
|
|
82.4
|
|
|
|
75.8
|
|
|
|
|
287.4
|
|
|
|
225.4
|
|
Total
|
|
|
$
|
1,471.7
|
|
|
$
|
1,557.1
|
|
|
|
$
|
4,433.1
|
|
|
$
|
4,759.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Metal-adjusted revenues, a non-GAAP financial measure, is
provided in order to eliminate an estimate of metal price
volatility from the comparison of revenues from one period to
another.
|
|
(2) Adjusted operating income is a non-GAAP financial measure. The
company is providing adjusted operating income on a segment basis
because management believes it is useful in analyzing the
operating performance of the business and is consistent with how
management reviews the underlying business trends. A
reconciliation of segment reported operating income to segment
adjusted operating income is provided in the appendix of the Third
Quarter 2014 Investor Presentation, located on the Company's
website.
|
|
(3) Return on Metal Adjusted Sales is calculated on Adjusted
Operating Income
|
|
|
|
GENERAL CABLE CORPORATION AND SUBSIDIARIES
|
Consolidated Balance Sheets
|
(in millions, except share data)
|
|
|
|
|
|
|
|
September 26,
|
|
|
December 31,
|
Assets
|
|
|
|
|
2014
|
|
|
2013
|
Current Assets:
|
|
|
(unaudited)
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
272.4
|
|
|
|
$
|
418.8
|
|
|
Receivables, net of allowances of $36.5 million at September 26,
2014 and $39.2 million at December 31, 2013
|
|
|
|
1,187.5
|
|
|
|
|
1,171.7
|
|
|
Inventories
|
|
|
|
|
1,278.2
|
|
|
|
|
1,239.6
|
|
|
Deferred income taxes
|
|
|
|
44.8
|
|
|
|
|
50.2
|
|
|
Prepaid expenses and other
|
|
|
|
129.0
|
|
|
|
|
126.2
|
|
|
|
Total current assets
|
|
|
|
2,911.9
|
|
|
|
|
3,006.5
|
|
Property, plant and equipment, net
|
|
|
|
887.9
|
|
|
|
|
1,092.0
|
|
Deferred income taxes
|
|
|
|
17.8
|
|
|
|
|
15.8
|
|
Goodwill
|
|
|
|
|
|
27.0
|
|
|
|
|
184.6
|
|
Intangible assets, net
|
|
|
|
70.4
|
|
|
|
|
182.9
|
|
Unconsolidated affiliated companies
|
|
|
|
19.3
|
|
|
|
|
19.0
|
|
Other non-current assets
|
|
|
|
88.0
|
|
|
|
|
78.1
|
|
|
|
Total assets
|
|
|
$
|
4,022.3
|
|
|
|
$
|
4,578.9
|
|
Liabilities and Total Equity
|
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
$
|
855.6
|
|
|
|
$
|
870.6
|
|
|
Accrued liabilities
|
|
|
|
403.2
|
|
|
|
|
434.9
|
|
|
Current portion of long-term debt
|
|
|
|
407.4
|
|
|
|
|
250.3
|
|
|
|
Total current liabilities
|
|
|
|
1,666.2
|
|
|
|
|
1,555.8
|
|
Long-term debt
|
|
|
|
1,116.4
|
|
|
|
|
1,136.6
|
|
Deferred income taxes
|
|
|
|
215.5
|
|
|
|
|
233.8
|
|
Other liabilities
|
|
|
|
|
213.6
|
|
|
|
|
255.9
|
|
|
|
Total liabilities
|
|
|
|
3,211.7
|
|
|
|
|
3,182.1
|
|
Commitments and Contingencies
|
|
|
|
|
|
|
|
Redeemable noncontrolling interest
|
|
|
|
16.3
|
|
|
|
|
17.0
|
|
Total Equity:
|
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, issued and outstanding shares:
|
|
|
|
|
|
|
|
|
September 26, 2014 - 48,670,009 (net of 10,139,959 treasury shares)
|
|
|
|
|
|
|
|
|
December 31, 2013 - 49,598,653 (net of 9,211,857 treasury shares)
|
|
|
|
0.6
|
|
|
|
|
0.6
|
|
|
Additional paid-in capital
|
|
|
|
707.5
|
|
|
|
|
699.6
|
|
|
Treasury stock
|
|
|
|
(185.4
|
)
|
|
|
|
(155.3
|
)
|
|
Retained earnings
|
|
|
|
356.4
|
|
|
|
|
847.4
|
|
|
Accumulated other comprehensive loss
|
|
|
|
(160.1
|
)
|
|
|
|
(112.1
|
)
|
|
|
Total Company shareholders' equity
|
|
|
|
719.0
|
|
|
|
|
1,280.2
|
|
|
Noncontrolling interest
|
|
|
|
75.3
|
|
|
|
|
99.6
|
|
|
|
Total equity
|
|
|
|
794.3
|
|
|
|
|
1,379.8
|
|
|
|
Total liabilities and equity
|
|
|
$
|
4,022.3
|
|
|
|
$
|
4,578.9
|
|

Source: General Cable Corporation
General Cable Corporation
Len Texter, Vice President, Investor
Relations, 859-572-8684