The higher than expected effective tax rate in the third quarter of 45.9% reflects additional tax expense of $6.1 million attributable to the cumulative adjustment impact of a higher full year forecasted effective tax rate at the third quarter relative to the second quarter, which is primarily due to relatively greater earnings in higher tax jurisdictions and certain quarter-discrete tax items.
Preferred Stock Dividend
In accordance with the terms of the Company’s 5.75% Series A Convertible Redeemable Preferred Stock, the Board of Directors has declared a regular quarterly preferred stock dividend of approximately $0.72 per share. The dividend is payable on November 26, 2012 to preferred stockholders of record as of the close of business on October 31, 2012. The Company expects the quarterly dividend payment to be less than $0.1 million.
A well-established, privately owned manufacturer, Prestolite Wire, LLC through its two manufacturing facilities in the United States and Mexico offers a broad range of wire and cable and wire harness products serving predominately transportation OEMs, tier 1 wire harness manufacturers and distribution customers. In 2011, Prestolite reported revenues of $170 million and is expected to be accretive in the first full year of operation. The Company expects to close on this acquisition in the next month.
"We are excited about the growth opportunities as a result of the Prestolite acquisition. Prestolite has built a strong brand and a broad base of long-standing customers through its reputation as a manufacturer of superior quality products and innovation, with a sharp focus on high temperature, and abrasion and corrosion resistant applications,” said Roger Roundhouse, Senior Vice President and General Manager, Transportation Wire and Assemblies. “This acquisition is highly complementary to our existing transportation and OEM oriented businesses as approximately 90% of Prestolite’s revenues are generated from products that are incremental to the General Cable’s existing product portfolio. Additionally the acquisition of Prestolite provides greater access to the evolving and growing transportation segment of the wire and cable industry.”