General Cable Corporation (NYSE: BGC), one of the most globally diversified industrial companies, reported today results for the fourth quarter ended December 31, 2011. Diluted earnings per share for the fourth quarter of 2011 were $0.09. Included in these results were $0.10 per share of non-cash convertible debt interest expense and $0.11 per share of mark to market losses on financial derivatives accounted for as economic hedges. Before the impact of these items, non-GAAP earnings per share for the fourth quarter of 2011 would have been $0.30.
- Despite the impact of metal cost headwinds, operating income in North America of $17.3 million exceeded management’s expectation in the fourth quarter of 2011
- Project backlog advanced during the fourth quarter for submarine and land-based turnkey cable projects in Europe as the Company added two new projects totaling more than $65 million, collectively, resulting in a total project backlog at the end of 2011 of more than $650 million
- Pan-European market strategy continues to advance as the Company further aligns resources and reduces its cost base; including the action taken in the fourth quarter of 2011, headcount in our Iberian business has been reduced by 20% at a cost of approximately $29 million over the last four years
- Excluding aerial transmission product shipments in Brazil and our business in Thailand, which was severely impacted by flooding in the fourth quarter, ROW volume as measured in metal pounds sold in the fourth quarter of 2011 increased 10% sequentially and 12% year over year
- Operating cash flow in the fourth quarter of $137 million, reflecting seasonal trends
- The Company repurchased $62.5 million or about 5% of its common shares during the fourth quarter under the terms of its $125 million Share Repurchase Program
- Industry Week ’s 2011 Top 10 Best Plants in North America was received by our Lawrenceburg, Kentucky and Lincoln, Rhode Island facilities
Fourth Quarter Results
Net sales for the fourth quarter of 2011 were $1,369.1 million, an increase of $100.6 million, or 8%, compared to the fourth quarter of 2010 on a metal-adjusted basis. Volume based on metal pounds sold decreased 5% in the fourth quarter of 2011 compared to 2010 principally as a result of weaker demand experienced throughout Europe in our non-project based businesses and the record metal-intensive aerial transmission product shipments in North America in the fourth quarter of 2010. Sequentially, strong aerial transmission product shipments in North America and project related activities in our submarine power and terrestrial high voltage and extra-high voltage businesses in Europe were more than offset by the weak Iberian market and the impact of severe flooding in Thailand as volume in terms of metal pounds sold declined 4%.