General Cable Corporation (NYSE: BGC), one of the most globally diversified industrial companies, reported today results for the fourth quarter ended December 31, 2012. The Company’s businesses in North America and Rest of World (ROW) finished the year with a positive operating performance in the fourth quarter resulting in consolidated adjusted operating income of $48.2 million, excluding certain items. Alcan Cable North America, Prestolite and Procables (Colombia) also contributed meaningfully in the fourth quarter, exceeding management’s expectations. Adjusted earnings per share for the fourth quarter of 2012 were $0.28, excluding certain items. For the fourth quarter, reported operating income was $5.5 million and reported loss per share was $0.35. A reconciliation of adjusted earnings per share to reported loss per share and adjusted operating income to reported operating income is included on page 4 of this press release.
- Generated adjusted operating income of $48.2 million as North America and ROW finished the year with a positive operating performance despite a challenging environment and regional leadership transition in ROW
- Volume as measured in metal pounds sold for General Cable’s legacy aerial transmission business in North America established an all-time quarterly high in the fourth quarter and established a new annual high in 2012
- Generated reported operating cash flow of $206.4 million during the fourth quarter of 2012 and $288.6 million for the full year 2012
- Completed the acquisition of Alcan Cable China on December 3, 2012 which brings an established sales infrastructure and premium brand with a strong reputation in the Chinese market; Alcan Cable China is expected to generate annual revenue in the range of $80 to $100 million
- Completed the acquisition of Prestolite Wire, LLC on November 2, 2012 which brings a broad range of wire and cable products serving predominately transportation original equipment manufacturers (OEMs) and distributors; Prestolite is expected to generate annual revenue in the range of $170 to $200 million
- Transitioned regional leadership in ROW; Gregory J. Lampert assumed responsibility for all the Company’s operations in the Americas, which includes Canada, the United States, Mexico, the Caribbean as well as Central/South America; Peter A. Campbell was promoted to Executive Vice President and Chief Executive Officer of the Asia Pacific region which includes businesses principally in Australia, China, Fiji, India, New Zealand, the Philippines, and Thailand as well as investments in Oman and Pakistan
Fourth Quarter Results
Net sales for the fourth quarter of 2012 were $1,603.1 million, an increase of $86.7 million, or 6%, compared to the third quarter of 2012 on a metal-adjusted basis. Volume based on metal pounds sold increased 17% in the fourth quarter of 2012 compared to the third quarter of 2012 principally due to the impact of acquisitions and ongoing strength in North American metal-intensive aerial transmission product shipments. Excluding metal pounds attributable to acquisitions, global unit volume declined 4% in the fourth quarter of 2012 as compared to the third quarter principally due to seasonal declines. In addition to typical seasonal trends, OEM rod mill sales in ROW normalized in the fourth quarter following the strong demand experienced in the third quarter.