Tuesday, Jul 28, 2009 The Nexans Board of Directors chaired by Frédéric Vincent met on July 27 to examine the Group’s consolidated financial statements for the first half of 2009:
Sales for the first half of 2009 amounted to 2,514 million euros, or 2,085 million euros at constant non-ferrous metal prices*.
This figure:
- reflects a 12.1% slide compared with the same period a year earlier at the current consolidation scope, which includes the contribution of companies acquired from Madeco and Intercond;
- reflects a 16.4%** decrease at a constant scope for the cable businesses alone, as Europe and North America being the areas mainly affected by the crisis;
- is the result of second quarter 2009 sales being 1.7% higher than in the first quarter, for cable businesses, reflecting a stabilized situation. Operating margin amounts to 110 million euros compared with 220 million euros in the first half of 2008. Operating margin as a percentage of sales (on constant sales) is 5.3% compared with 9.1% for the same period a year earlier.
Operating margin as a percentage of sales for Energy infrastructures is close to that of the first half of 2008.
Non-recurrent restructuring costs amount to 53 million euros. The Group is stepping up the pace at which it is aligning its organization and production plant capacity to the market conditions.
The pre-tax loss for the first half of the year is 36 million euros. It includes 94 million euros for non-recurring expenses. In addition to restructuring, it includes a cost of 41 million euros relating to copper, without any cash effect, resulting, as in 2008, from the drop in the average weighted cost of non-ferrous metals reflected in the accounts.
The net loss (Group share) is 57 million euros given the tax expense of 19 million euros. Excluding the exceptional items mentioned above, the Group would have reported a net profit for the first half.
The Group’s net financial debt is down by 224 million euros compared with December 31, 2008, to 312 million euros at June 30, 2009. The ratio of net debt to total shareholders’ equity is 18.2%.
(*) To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure the underlying sales trend, Nexans also calculates its sales using a constant price for copper and aluminum.
(**) 2008 sales on the basis of comparable data correspond to constant metal sales, recalculated after adjustments for comparable scope and exchange rates. The exchange effect on sales at constant non-ferrous metal prices amounts to a negative 48 million euros, while the comparable scope effect amounts to a negative 21 million euros.
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