Economy

General Cable Posts Strong 2017 First Quarter Results

Published

9 years ago

08/05/2017

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.

Economy

FX Pressure Pushes Naira Lower to N1,373/$1 at Official Market

Published

7 minutes ago

19/05/2026

Adedapo Adesanya

By Adedapo Adesanya

It was a horrible day for the Nigerian Naira in the different segments of the foreign exchange (FX) market on Monday, May 15, as its value further weakened against the United States Dollar.

In the black market window, the Naira lost N5 against the Dollar yesterday to sell for N1,390/$1 compared with the previous value of N1,385/$1, but at the GTBank forex counter, it remained unchanged at N1,383/$1.

In the Nigerian Autonomous Foreign Exchange Market (NAFEX), the Nigerian currency depreciated against the greenback by N2.66 or 0.19 per cent to sell for N1,373.70/$1 compared to last Friday’s rate of N1,371.04/$1.

Equally, it fell against the Pound Sterling in the same market segment by N9.05 to trade at N1,839.66/£1 versus N1,830.61/£1, and lost N5.42 on the Euro to close at N1,600.49/€1 versus N1,595.07/€1.

The performance of the local currency during the session indicates early worries despite all signals pointing to stability, amid improved Dollar sales by the Central Bank of Nigeria (CBN), with steady, higher oil receipts to bolster the nation’s reserves.

Activity at the market showed that turnover rose 57.3 per cent to $76.29 million on Monday from $48.49 million posted on Friday.

Over the weekend, S&P raised Nigeria’s credit ratings for the first time since 2012 and highlighted improved FX market liquidity and $10 billion turnover recorded in April 2026 as one of the major gains of the CBN-led FX reforms.

The agency said the liberalisation of the exchange rate has bolstered access to foreign currency and enabled a market-driven exchange-rate environment while supporting investor and consumer confidence.

Meanwhile, the cryptocurrency market was bullish on Monday as investors monitored developments in the Iran conflict and weighed the impact of surging oil prices on inflation and US interest-rate expectations.

Ethereum (ETH) gained 0.7 per cent to trade at $2,134.10, Cardano (ADA) rose by 0.6 per cent to $0.2515, Solana (SOL) expanded by 0.3 per cent to $85.11, Binance Coin (BNB) jumped 0.2 per cent to $643.29, TRON (TRX) increased by 0.03 per cent to $0.3565, and Bitcoin (BTC) advanced by 0.02 per cent to $76,912.12.

On the flip side, Dogecoin (DOGE) slid by 1.5 per cent to $0.1044, and Ripple (XRP) decreased by 0.5 per cent to $1.38, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) traded flat at $1.00 apiece.

Economy

Customs Street Opens Week Bearish With 0.05% Loss

Published

15 minutes ago

19/05/2026

Dipo Olowookere

By Dipo Olowookere

A marginal 0.05 per cent loss was recorded by Customs Street on Monday, as sell-offs by market participants remained.

This was driven by the desire of investors to book profits, having witnessed a significant price appreciation on the stocks in their portfolios.

Yesterday, bargain-hunting in the banking space, which resulted in the sector closing 0.17 per cent higher, could not prevent the Nigerian Exchange (NGX) Limited from going down.

Data showed that the consumer goods segment lost 0.26 per cent, the insurance counter depreciated by 0.20 per cent, the industrial goods index shed 0.09 per cent, and the energy industry retreated by 0.03 per cent.

As a result, the All-Share Index (ASI) eased by 126.09 points to 250,204.83 points from 250,330.92 points, and the market capitalisation contracted by N81 billion to N160.363 trillion from N160.444 trillion.

NCR Nigeria and Zichis declined by 9.99 per cent each to sell for N161.20 and N26.49, respectively, Industrial and Medical Gases shrank by 9.93 per cent to N38.10, Sovereign Trust Insurance depreciated by 9.86 per cent to N2.65, and DAAR Communications slipped by 9.78 per cent to N2.03.

On the flip side, Oando gained 10.00 per cent to finish at N51.70, University Press also rose by 10.00 per cent to N5.50, Deap Capital soared by 9.96 per cent to N5.96, May and Baker expanded by 9.94 per cent to N52.00, and Trans-Nationwide Express grew by 9.92 per cent to N7.76.

Yesterday, 800.5 million equities worth N37.1 billion exchanged hands in 87,096 deals compared with the 1.1 billion equities valued at N44.3 billion traded in 65,744 deals last Friday. This showed that the number of deals went up by 32.48 per cent, while the trading volume and value went down by 27.23 per cent and 16.25 per cent, respectively.

The most active stock on the first trading session of this week was UBA with a turnover of 65.0 million units worth N2.8 billion, Fidelity Bank traded 57.3 million units for N1.3 billion, Access Holdings sold 42.3 million units valued at N1.1 billion, DAAR Communications exchanged 36.7 million units for N81.8 million, and Secure Electronic Technology transacted 36.6 million units worth N33.0 million.

Economy

Crude Oil Prices Climb on Fears of Prolonged Iran War Disruptions

Published

3 hours ago

19/05/2026

Adedapo Adesanya

By Adedapo Adesanya

Crude oil prices climbed about 3 per cent on Monday as worries over supply disruption from the Iran war offset a report that the US had agreed to ‌waive sanctions on Iranian crude during talks.

Brent futures rose $2.84 or 2.6 per cent to $112.10 a barrel, while the US West Texas Intermediate (WTI) crude for June delivery jumped $3.24 or 3.1 per cent to $108.66 per barrel.

Drone attacks on both the United Arab Emirates (UAE) and Saudi Arabia further dimmed hopes of any de-escalation in the region.

The drone strikes included an attack that led to a fire near the Barakah nuclear power plant in the UAE, with the country’s defence ministry saying two other drones had been successfully dealt with. Meanwhile, Saudi Arabia said it had intercepted three drones that entered its airspace from Iraq.

These attacks are just the latest in a string of attacks on US allies in the region after President Donald Trump launched Project Freedom, his latest attempt to reopen the Strait of Hormuz for trade.

The lack of a breakthrough on an Iran agreement during President Trump’s visit to China also added to upward pressure for oil prices, with fears of major global shortages now rising rapidly.

Also, the International Energy Agency (IEA) said commercial oil inventories were depleting rapidly, with only a few weeks’ worth left due to the conflict and the closure of the strait to shipping.

The head of the Paris-based agency, Mr Fatih Birol, said the release of strategic reserves had added 2.5 million barrels of oil per day to the market, but they were “not endless”.

Reuters cited an Iranian media report that the US had accepted in the new text to waive Iran’s oil sanctions during the period of talks, also reporting that Pakistan has shared with the US a revised proposal from Iran to end the war in the Middle East.

According to the Financial Times, Scotland-based economists are now examining a scenario where Brent crude surges to $180 per barrel if traffic through the Strait of Hormuz remains constrained for an extended period.

In China, growth lost momentum in April, with industrial output cooling and retail sales sinking to more than three-year lows as the world’s second-biggest economy faced higher energy costs from the Iran war and persistently weak domestic demand.