February 7, 2013
The Nexans Board of Directors meeting on February 6, 2013 approved the Financial Statements for 2012. Net sales for 2012 totaled 7.178 billion euros compared with 6.920 billion euros in 2011. At constant non-ferrous metal prices1, the figure is 4.872 billion euros compared with 4.594 billion euros in 2011.
The consolidated net debt was 606 million euros at December 31, 2012, compared with 222 million euros a year earlier. This change is mainly attributable to the acquisition of AmerCable in the United States accounting for 211 million euros and Shandong Yanggu in China accounting for 127 million euros.
On November 26, 2012, Nexans signed an amendment to the March 27, 2011 agreement with its lead shareholder, the Chilean group Madeco. The main point of this amendment is to allow Madeco to raise its maximum stake in Nexan’s equity from 22.5% (as stipulated in the initial agreement) to 28% of the shareholders’ equity and voting rights, thereby enabling Madeco to consolidate its position as reference shareholder and long-term partner.
Referring to the 2012 results, Frédéric Vincent, Chairman and CEO said: “In 2012, numerous strategic initiatives were implemented, such as the acquisition of AmerCable in the United States and Yanggu in China, as well as the launch of the project to build a plant in South Carolina for land high voltage cables. Nonetheless, they occurred against the backdrop of worsened economic conditions in the second half of 2012 and implementation difficulties for submarine high voltage energy contracts, and the 2012 results did not meet expectations.
For 2013, the economic context in certain parts of the world is unclear (Brazil and Australia) or even subject a recession (Europe). High voltage business will see its profitability improve without, however, reaching a level considered normal. Given that the action plans launched or under review will produce only marginal effects in 2013, the Group is currently expecting operational profitability to be roughly the same as in 2012.
In this context, the Group would like to adopt the means to protect and restore its competitiveness, contain its costs and pursue the rationalization of its organization. Consequently, a study will be launched of a plan having as its objective, savings in the order of 70 million euros in Europe over time relating to land high voltage cables, special cables for industry and administrative structures in general. The Group will table the subject with the relevant employee representative bodies in the third quarter of 2013.
Additionally, at its January 14 meeting, the Board of Directors approved the main directions set in the 2013-2015 strategic plan in terms of markets, products and industrial policy. The actions included in this strategic plan are designed to reach an objective for the Group, assuming an unchanged economic climate, of raising its operating margin by 2015 to 350 to 400 million euros and to approximately double its return on capital employed.”