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Paris, October 16, 2002 � Nexans (Paris: NEX.PA) today announced third-quarter sales of 1,039 million euros. Sales for the first 9 months of the year were 3,267 million euros.
Based on a constant non-ferrous metals price [1] , third-quarter sales total 1,008 million euros, against 1,077 million euros (-6.4%) for the third quarter of 2001. For the first 9 months of the year, sales reached 3,098 million euros, down 8.8% compared to the same period last year (9% based on a comparable Group structure).
The third quarter confirms the trends that emerged during the first half of the year, principally characterized by the strong deterioration of the telecom market and a fall in industrial capital expenditure. Comparative consolidated sales
|
in millions of euros |
At actual metal price |
At constant metal price |
| |
2001 |
2002 |
2001 |
2002 |
| Third quarter
Second quarter
First quarter First 9 months total |
1,140
1,303
1,233
3,676 |
1,039
1,147
1,081
3,267 |
1,077
1,201
1,119
3,397 |
1,008
1,072
1,018
3,098 |
Sales at constant metal price per division
|
in millions of euros |
3rd quarter |
First 9 months |
| |
2001 |
2002 |
2001 |
2002 |
|
Energy
Telecom
Electrical wires
Distribution and other
Total |
542
204
251
80
1,077 |
544
142
250
72
1,008 |
1,626
666
856
249
3,397 |
1,610
441
819
228
3,098 |
- Energy: (main activities)
| in millions of euros |
Q3/01 |
Q3/02 |
| Infrastructures |
224 |
216 |
| Buildings/Construction |
205 |
197 |
| Industry |
92 |
111 |
The quarter is marked by a good performance of cables for infrastructure markets where the outlook remains favorable, and by a downturn in cable sales for industrial construction in the face of a sharp fall in companies� capital expenditure. The improvement in Industry cables segment activities is attributed to a catch-up effect from the previous year, rather than indicative of an upturn in the economy.
| in millions of euros |
Q3/01 |
Q3/02 |
| Infrastructures |
91 |
60 |
| Private local area networks (LAN) |
65 |
56 |
| Industry |
48 |
26 |
The Telecom division experienced a stabilization of activity for infrastructure markets relative to the previous quarter and the continued deterioration in the market for special cables aimed at telecom equipment manufacturers (Industry segment).
| in millions of euros |
Q3/01 |
Q3/02 |
| Wirerod |
124 |
133 |
| Electrical wires |
26 |
26 |
| Winding wires |
100 |
91 |
The good performance of wirerod activity has compensated for the persistently low demand in the winding wires sector.
Outlook for 2002
The Group continues to be affected by the deteriorating economic environment in the Western world.
In this unclear economic climate, Nexans is maintaining its objective of achieving income from operations for the second half of 2002 that is slightly higher than or equal to that of the first half of the year and is continuing action already in progress to:
- Control the amount of capital employed (to generate cash)
- Pursue the restructuring programs already begun, particularly in telecom cables, to lower the Group�s breakeven point.
The Group is also pursuing its share buyback program.
Financial calendar
Publication of 2002 sales and income: January 28, 2003
[1] To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure its effective sales evolution, Nexans also calculates its sales using a constant price for copper and aluminum (1,500 euros/metric ton and 1,200 euros/metric ton respectively).
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