This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

General Cable's CEO Discusses Q3 2011 Results - Earnings Call Transcript

The format of today's call will first be an overview by Brian Robinson of our third quarter results. Secondly, Greg Kenny will provide comments on the company's fourth quarter 2011 outlook and business trends, followed by a question-and-answer period.

Before we get started, I wanted to call your attention to our Safe Harbor provision regarding forward-looking statements and company-defined non-GAAP financial measures as defined on Slide #2 as we may refer to adjusted operating income and adjusted EBITDA in today's call.

To begin, please turn to Slide #5, where we have included a reconciliation of our previously communicated outlook provided on August 1.

With that, I will turn the call over to Brian Robinson.

Brian J. Robinson

Thank you, Len. Good morning. Third quarter operating results were broadly in lined with the low end of our seasonally adjusted expectations in North America and ROW while Europe and Mediterranean lagged our expectations as market conditions remained challenging throughout the region. Overall, underlying demand in most markets remained stable and consistent with historical seasonal patterns despite the impact of declining metal prices, the decline of which accelerates in the final 15 days of the quarter, resulting in lower-than-expected volumes in ROW as some distributors and rod customers deferred purchases. The combination of a weak Europe and Mediterranean region and volatile metals at the end of the quarter negatively impacted net sales, metal pounds sold and seasonal inventory quantity reductions as compared to our earlier communication.

On the next slide, we reported adjusted earnings per share of $0.33, which exclude $0.10 per share of non-cash convertible debt interest expense and $0.16 of mark-to-market losses on derivative -- on financial derivatives accounted for as economic hedges. The company would have reported earnings per share of $0.69 in the third quarter after the impact of $0.23 per share of losses due to currency volatility and $0.13 per share as a result of cumulative impact of the effective tax rate adjustment, which were not in our August 1 outlook. As you can see, the significant volatility experienced during the latter portion of the quarter had a pronounced impact on our results as we recorded other expense of $31.5 million: $12.9 million relate to mark-to-market losses on economic hedges and $18.6 million related to foreign currency transaction losses.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 17,798.49 -14.90 -0.08%
S&P 500 2,090.11 +1.24 0.06%
NASDAQ 5,127.5250 +11.3820 0.22%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs