General Cable Posts Strong 2017 First Quarter Results

Image

By Modupe Gbadeyanka

General Cable Corporation has released results for the first quarter ended March 31, 2017 and during the period, it reported diluted earnings per share were $0.24, while the operating income stood at $24 million.

The Company generated adjusted earnings per share for the quarter of $0.27 and adjusted operating income of $45 million.

Commenting on the results, President and CEO of the firm, Mr Michael McDonnell, stated that, “We’re very pleased with our strong first quarter results. First quarter adjusted operating income was above expectations driven in part by the execution of our strategic initiatives in North America and substantial improvement in Latin America.

“We continue to be encouraged with the progress of North America as we execute our strategic roadmap. We expect to see improvement in Europe through the remainder of 2017 as we are continuing to address delays in a European restructuring project while also driving favourable performance in our land turn-key project business and improved backlog in our subsea project business.

“Overall, we are moving our businesses forward despite declines in certain key end markets over the recent past, and we maintain a positive outlook on our ability to execute against our roadmap in 2017.”

It was gathered that the reported operating income of $24 million and adjusted operating income of $45 million were up 16 percent and 7 percent, respectively, compared to the prior year period

Adjusted operating income of $45 million benefited from strong performance in North America, substantial improvement in our Latin America business, and rising metal prices

The company maintained significant liquidity with $317 million of availability on its asset based credit facility, while impact of metal prices was a $7 million benefit compared to a negative $4 million impact in the prior year period

Segment Demand

North America – Unit volume was even with the prior year as stronger demand for construction and industrial and specialty (I&S) products was offset by lower demand for rod products. Overall in the first quarter of 2017, demand for our products in construction and I&S markets was up 18% and 6%, respectively, year over year. Demand year over year for electric utility products was stable.

Europe – Unit volume was relatively flat as stronger demand for electric utility products including land-based turnkey projects as well as energy cables helped to offset the easing performance of the Company’s submarine turnkey project business and continued weak demand for industrial and construction projects throughout the region.

Latin America – Unit volume remained relatively flat as increased shipments of aerial transmission cables in Brazil were offset by the continued pressure across the portfolio driven by uneven spending on electric infrastructure and construction projects.

Net Debt

At the end of the first quarter of 2017 and the end of the fourth quarter of 2016, total debt was $1,053 million and $939 million, respectively, and cash and cash equivalent was $83 million and $101 million, respectively. The increase in net debt was principally due to investment in working capital, partly due to rising metal prices, and payments of $33 million related to our FCPA resolution.

Second Quarter 2017 Outlook

Revenues in the second quarter are expected to be in the range of $925 to $975 million. Unit volume is anticipated to be up low-single digits year over year. Reported operating income is anticipated to be in the range of $20 to $35 million and adjusted operating income is anticipated to be in the range of $30 to $45 million for the second quarter. Reported diluted earnings per share are anticipated to be in the range of $0.05 to $0.20 per share and adjusted earnings per share are expected to be in the range of $0.15 to $0.30 per share for the second quarter.

The second quarter outlook assumes copper (COMEX) and aluminum (LME) prices of $2.60 and $0.88, respectively. Foreign currency exchange rates are assumed constant in the second quarter outlook. The second quarter outlook for adjusted operating results does not include results from Asia Pacific and Africa.

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) and net debt (defined as long-term debt plus current portion of long-term debt less cash and cash equivalents) are “non-GAAP financial measures” as defined under the rules of the Securities and Exchange Commission.

These company-defined non-GAAP financial measures exclude from reported results those items that management believes are not indicative of our ongoing performance and are being provided herein because management believes they are useful in analysing the operating performance of the business and are consistent with how management reviews our operating results and the underlying business trends.

Share
Related Stories
Image
28-November-2023

Brent Crude Slides Below $80 Per Barrel Ahead OPEC+ Meeting

By Adedapo Adesanya Brent crude benchmark dipped below $80 a barrel on Monday, precisely losing 60 cents of 0.7 per cent to trade at $79.98 a barrel as investors await this week’s meeting of the Organisation of the Petroleum Exporting Countries and their allies (OPEC+). The group is anticipated to maintain its ceiling on crude oil production by member countries into 2024. This affected the oil market, with the West Texas Intermediate (WTI) crude futures declining yesterday by 68 cents or 0.9 per cent to trade at $74.86 per barrel. Last week, the 23-man OPEC+ postponed its Sunday ministerial meeting

Image
25-November-2023

Reduced Geopolitical Risk, OPEC+ Meeting Speculations Weaken Oil Prices

By Adedapo Adesanya  Oil prices fell on Friday as the release of some hostages in Gaza reduced the geopolitical risk premium and indicated that the Israel-Hamas tensions may not have much effect on the oil market. Brent crude futures depreciated by 84 cents or 1 per cent at $80.58 a barrel, while the US West Texas Intermediate (WTI) crude dropped $1.56 or 2 per cent to close at $75.54. There was no settlement for WTI on Thursday owing to the US Thanksgiving holiday. Prices notched their first week of gains in over a month ahead of next week’s meeting of

Image
28-November-2023

Unlisted Securities Close 0.84% Higher

By Adedapo Adesanya The duo of Aradel Holdings Plc and 11 Plc landed the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.84 per cent on Monday, November 27. The two energy stocks overpowered losses posted by two other securities admitted to the alternative stock exchange, leaving the NASD Unlisted Security Index (NSI) closing higher by 7.22 points to 864.51 basis points from 857/29 points, as the market capitalisation of the exchange increased by N9.78 billion to N1.171 trillion from N1.162 trillion. Aradel Holdings Plc saw its share price continue to soar as it rose by N28.80 to

Image
26-November-2023

Dangote to List Refinery on NGX, Says NNPC Won’t Take Beyond 20% Stake

By Dipo Olowookere Dangote Refinery and Petrochemical Limited will be listed on the floor of the Nigerian Exchange (NGX) Limited in the future, the Chairman of the company, Mr Aliko Dangote, has revealed. Mr Dangote, who is the richest man in Africa, confirmed this in an interview with the Financial Times published on Saturday. The refinery will join other businesses of Mr Dangote currently trading their equities on the NGX, Dangote Cement, Dangote Sugar, and NASCON. The oil facility, believed to be worth about $20 billion, was launched in May 2023 by the immediate past president of Nigeria, Mr Muhammadu

More Stories
Image
15-June-2020

Investors Lose N7.3bn at NASD OTC Market

By Adedapo Adesanya Investors at the NASD Over-the-Counter (OTC) Securities Exchange Market lost N7.3 billion in value resulting from a negative movement of prices in just four days of trading at the bourse last week. This happened as the NASD OTC market capitalization closed downward in the 24th week of trading this year at N501.34 billion compared to N508.60 billion of the preceding week (Week 23). In addition, the bourse’s unlisted securities index went down by 1.43 percent to close the week at 682.49 points as against 692.38 points in the preceding. There was also a 55.4 percent decrease in

Image
07-August-2023

NASD OTC Equities Jump 3.97% in Week 31

By Adedapo Adesanya A 3.97 per cent growth was recorded by the NASD Over-the-Counter (OTC) Securities Exchange last week, extending the weekly improvement as investors showed strong confidence in the alternative bourse. It was the 31st trading week of the year and the market opened for five trading sessions. The outcome pushed the market capitalisation of the exchange higher by N43 billion to N1.120 trillion from the N1.077 trillion achieved in Week 30. Likewise, the NASD Unlisted Securities Index (NSI) appreciated by 30.88 points to close at 809.84 points compared with the 778.96 points recorded in the previous week. In

Image
10-August-2022

Financial Industry Players Must Collaborate to Satisfy Customers Needs

By Aduragbemi Omiyale The Managing Director of Interswitch Purepay, Mr Akeem Lawal, has called on critical players in the Nigerian financial service industry to put heads together to provide innovative solutions and unique offerings to customers. According to him, customers deserve the best from financial industry players like banks, telecommunications companies and financial technology (fintech) firms in order to meet the 95 per cent financial inclusion target by 2024. Mr Lawal, who delivered a presentation at the recently-concluded Nigerian Fintech Forum at the Civic Centre, Lagos, stated that the partnership will accelerate growth and deepen financial inclusion in the country.

Image
26-September-2016

Naira Sinks To 440 As Dollar

By Dipo Olowokere The naira was sold at the parallel market for 440 per dollar on Sunday, as the lingering foreign exchange scarcity increased to a new level. The local currency, which closed at 436/dollar on Thursday, eased to 435 in the early hours of Friday. It closed at 439/dollar. The naira had closed at 428 to the greenback on Wednesday, down from 424 on Tuesday, as lingering foreign exchange shortage weighed on the economy. The latest declines in the naira value started on Wednesday, a day after the Central Bank of Nigeria’s Monetary Policy Committee retained the benchmark lending

Image
10-December-2022

Oil Prices Further Drop on Growing Recession Fears

By Adedapo Adesanya Oil prices settled lower in volatile trading on Friday, with both benchmarks recording their biggest weekly declines in months. Brent crude settled 5 cents lower at $76.10 per barrel, while the United States West Texas Intermediate (WTI) crude shed 44 cents to trade at $71.02 a barrel. Both crude benchmarks posted weekly losses of around 10 per cent each. It was the biggest weekly decline since April for the U.S. WTI futures and since early August for Brent. Growing recession fears negated any supply woes after weak economic data from China, Europe and the US. Oil prices

Image
23-May-2018

State vs Ugwuonye: Court Adjourns to July 6

By Destiny Ugorji A Chief Magistrate Court sitting in Wuse zone 2 area of Abuja, presided over by Chief Magistrate Mabel Bello, Monday, adjourned a case of false evidence and injurious falsehood against disbarred Lagos lawyer, Emeka Ugwuonye to July 6, 2018. The adjournment was at the instance of Mr Ugwuonye, who could not produce a lawyer to defend him in court; but opted to defend himself; a proposal that was turned down by the presiding Chief Magistrate. The court which frowned at what appeared like a delay tactics employed by Mr Ugwuonye in the matter, awarded N10,000 cost against

Image
26-May-2017

Ambode Removes Chaplain for ‘Disrespecting Wife’

By Dipo Olowookere Governor Akinwunmi Ambode has been accused of pushing for the sack of Presiding Chaplain of the Chapel of Christ the Light, Alausa, Lagos State barely 24 hours after the Governor’s wife, Mrs Bolanle Ambode, allegedly stormed out of the church. According to Punch, there is anger at the Chapel of Christ the Light, Alausa, Lagos State, after the Presiding Chaplain, Venerable Femi Taiwo, was sacked by the Governing Council allegedly on the order of the state Governor, Akinwunmi Ambode. PUNCH Metro gathered that Taiwo got the sack on Monday, May 15, without any query or official reason

Image
30-June-2022

N180bn Unclaimed Dividends Constitute 5% of Total Declared Dividends—SEC

By Adedapo Adesanya The Securities and Exchange Commission (SEC) has revealed that as of December 31, 2021, the total value of unclaimed dividends in the Nigerian capital market increased to N180 billion. The Director-General of the agency, Mr Lamido Yuguda, however, pointed out that this amount only constitutes 5 per cent of the total dividends declared by companies trading their securities in the domestic exchanges. Though Mr Yuguda stated that this was giving the commission some sleepless nights, he said efforts are being taken to reduce the unclaimed dividends to zero per cent. According to him, SEC is collaborating with

Ad
Ad
Recent Stories
Image
28-November-2023

Zenith Bank Lights Up Ajose Adeogun Street With Beautiful Decorations

By Aduragbemi Omiyale The popular Ajose Adeogun Street and Roundabout on Victoria Island, Lagos, is wearing a new look, thanks to Zenith Bank Plc, which designed the areas with beautiful Christmas decorations. The yearly ritual of the financial institution is a part of its Corporate Social Responsibility initiatives aimed at setting the tone for the Christmas and Yuletide seasons. Performing the Light-Up ceremony, the 17th of its kind recently, the chief executive of Zenith Bank, Mr Ebenezer Onyeagwu, expressed his delight in heralding the 2023 Yuletide season by lighting up the iconic Ajose Adeogun Street and Roundabout. He urged everyone

Image
28-November-2023

FG Rehabilitate TinCan, Onne Port, Others With $1.1bn

By Adedapo Adesanya  The federal government, through the Nigerian Ports Authority (NPA), has announced plans to invest $1.1 billion to fully rehabilitate decaying port infrastructure at TinCan, Apapa, Rivers, Delta, Calabar, and Onne ports as part of efforts to improve the efficiency of the nation’s existing ports. Out of the estimated 47,000 kilometres of coastline in Africa, Nigeria makes up about 853 kilometres, creating the perfect opportunity to get access to its much-needed revenue. This coastline and a 200 nautical mile exclusive economic zone make up Nigeria’s coastline in the Gulf of Guinea. The coastline equals a maritime area of

Image
28-November-2023

EFCC Educates Public About Ways to Prevent ATM Card Swap Fraud

By Adedapo Adesanya The Economic and Financial Crimes Commission (EFCC) has alerted Nigerians of unauthorised bank withdrawals linked to Automated Teller Machine (ATM) card swap fraud. The commission issued the alert on Monday in a statement by the Head of Media and Publicity, Mr Dele Oyewale. According to the EFCC, fraudsters engaged in this activity typically keep a debit card from the same bank and, under the guise of assisting a confused bank customer at an ATM point, swiftly swap the card while memorising the PIN used with fake cards. “These cards get stuck in the machine due to a

Image
28-November-2023

NCAA Suspends United Nigeria Airlines Wet-Lease Aircraft

By Aduragbemi Omiyale One of the wet-lease aircraft in the operations of United Nigeria Airlines has been suspended by the Nigeria Civil Aviation Authority (NCAA). A wet-leased is a leasing arrangement whereby one airline (the lessor) provides an aircraft, complete crew, maintenance, and insurance (ACMI) to another airline or other type of business acting as a broker of air travel (the lessee), which pays by hours operated. The regulator decided to suspend the plane after one of the flights of the airline destined for Abuja from Lagos landed in Asaba, Delta State, over the weekend. While the company claimed the

Image
28-November-2023

BFREE Plans $40m to Acquire Bad Loans from Union Bank

By Modupe Gbadeyanka A cutting-edge German-Nigerian financial technology (fintech) firm, BFREE, plans to put down $40 million to acquire some distressed loan portfolios in Union Bank of Nigeria. A statement from the Nigerian lender said both parties signed a Memorandum of Understanding (MOU) in Berlin on November 21, 2023, at the German-Nigerian Business Forum. It was disclosed that BFREE would partner with its international financing partners to refinance bad loans from Union Bank, particularly those delayed in repayment or already written off. Union Bank expressed its optimism that this strategic partnership with BFREE would not only bolster the bank’s financial

Image
28-November-2023

Unlisted Securities Close 0.84% Higher

By Adedapo Adesanya The duo of Aradel Holdings Plc and 11 Plc landed the NASD Over-the-Counter (OTC) Securities Exchange in the green territory by 0.84 per cent on Monday, November 27. The two energy stocks overpowered losses posted by two other securities admitted to the alternative stock exchange, leaving the NASD Unlisted Security Index (NSI) closing higher by 7.22 points to 864.51 basis points from 857/29 points, as the market capitalisation of the exchange increased by N9.78 billion to N1.171 trillion from N1.162 trillion. Aradel Holdings Plc saw its share price continue to soar as it rose by N28.80 to

Image
28-November-2023

Naira Falls at Across FX Market Segments as CBN Vows to Clear Backlogs

By Adedapo Adesanya The Naira depreciated in the opening session of the week in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Monday, November 27 against the Dollar by N19.71 or 2.5 per cent as the Governor of the Central Bank of Nigeria (CBN), Mr Olayemi Cardoso, said the lender was committed to clearing a backlog of foreign exchange (forex). “We have initiated the payment of unsettled forward foreign exchange obligations, and these payments will continue until all obligations are cleared,” he told bankers last Friday during a dinner speech in Lagos. However, his assurance could not ease the pressure

Image
28-November-2023

Tinubu Reshuffles NNPC Board, Retains Kyari as CEO

By Adedapo Adesanya President Bola Tinubu has announced the reappointment of Mr Mele Kolo Kyari as the Group Chief Executive Officer of the Nigerian National Petroleum Company (NNPC) Limited. This move comes as part of a larger reshuffle, where President Tinubu has unveiled a new board and management team for the NNPC Limited which will commence their duties from December 1, 2023. Mr Kyari’s reappointment comes after recent calls to have him sacked. Having spent four years under the immediate past administration of Mr Muhammadu, the renewed appointment shows the current government has confidence in his ability to steer the

Image
28-November-2023

Investors’ Bullish Optimism Further Lifts NGX Index by 0.17%

By Dipo Olowookere The positive momentum witnessed at the Nigerian Exchange (NGX) Limited continued on Monday with a 0.17 per cent leap at the close of business. Buying pressure, particularly in a few blue-chip equities, kept the bulls at Customs Street during the trading session, though the consumer goods space succumbed to profit-taking by 0.99 per cent. But hope was kept alive by the gains reported by the other key sectors of the market, with the banking counter growing by 1.71 per cent, and the industrial goods index appreciating by 0.01 per cent, while the insurance and energy sectors remained

Image
28-November-2023

Brent Crude Slides Below $80 Per Barrel Ahead OPEC+ Meeting

By Adedapo Adesanya Brent crude benchmark dipped below $80 a barrel on Monday, precisely losing 60 cents of 0.7 per cent to trade at $79.98 a barrel as investors await this week’s meeting of the Organisation of the Petroleum Exporting Countries and their allies (OPEC+). The group is anticipated to maintain its ceiling on crude oil production by member countries into 2024. This affected the oil market, with the West Texas Intermediate (WTI) crude futures declining yesterday by 68 cents or 0.9 per cent to trade at $74.86 per barrel. Last week, the 23-man OPEC+ postponed its Sunday ministerial meeting