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General Cable Corporation (NYSE: BGC) reported today results for the first quarter ended March 28, 2014. For the first quarter of 2014, excluding certain items, the Company recorded adjusted loss per share of ($0.05) and adjusted operating income of $27 million. For the first quarter of 2014, reported loss per share was ($6.42) and reported operating loss was ($237) million. A reconciliation of adjusted earnings per share to reported earnings per share and adjusted operating income to reported operating income is included on page 3 of this press release.
Highlights
- Reconfirmed full year outlook for adjusted operating income for 2014 excluding Venezuela
- Productivity and asset optimization plans on track
- Submarine turnkey project business delivers stable performance for the fourth consecutive quarter
- Repurchased $31 million or 2% of common shares in the first quarter
Gregory B. Kenny, President and Chief Executive Officer of General Cable, said, “We anticipated a sluggish seasonal start to the year but the uncertainty in Venezuela, the extreme winter weather in North America and declining copper prices had a pronounced impact on our first quarter results. We are managing through these challenges as we generated adjusted operating income at the upper end of our revised outlook for the first quarter. We are prepared for the construction season and continue to focus on executing on our submarine turnkey projects which together we expect will drive a sharp improvement in adjusted operating income as we move into the second and third quarters. At the same time, we are focused on driving productivity and asset optimization throughout our manufacturing footprint.”
Q1 2014 versus Q1 2013
Net sales for the first quarter of 2014 of $1,430 million were down 3% as compared to the first quarter of 2013 on a metal adjusted basis. Global unit volume for the first quarter of 2014 was also down 3% year over year principally due to the extreme winter weather experienced in North America. Adjusted operating income for the first quarter of 2014 of $27 million decreased 43% as compared to the first quarter of 2013 principally due to the impact of the social unrest in Venezuela and Thailand and the extreme winter weather experienced across North America. Partially offsetting the impact of these items was stronger year over year results in Europe & Med primarily driven by the continued execution of the submarine turnkey project business.
Q1 2014 versus Q4 2013
Net sales for the first quarter of 2014 declined 14% as compared to the fourth quarter of 2013 as global unit volume decreased 10% principally due to seasonal demand patterns. Additionally, in North America, the impact of the extreme winter hampered business activity across the region in the first quarter as compared to the fourth quarter when the Company shipped near record high volume of aerial transmission cables. Sequentially, adjusted operating income for the first quarter of 2014 reflects the impact of the social unrest and pricing controls in Venezuela, seasonally slower production and installation activity in the Company’s submarine turnkey project business in Europe and the impact of seasonally lower global unit volume.