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Paris, October 15, 2003 - Nexans (Paris: NEX.PA) today announced sales of 965 million euros for the third quarter of 2003. Sales for the first 9 months of the year amounted to 2,957 million Euros.
At constant non-ferrous metal prices and exchange rates, third quarter sales amounted to 944 million euros compared with 978 million euros for the same quarter last year, down by 3.5% (a fall of -6.4% at constant consolidated scope). For the first nine months of the year, sales amounted to 2,888 million euros, down by 3.2% compared with the same period last year (-4.9% at constant consolidated scope).
In a continuing depressed economic environment, especially in France, that remains marked by strong competitive pressure, Nexans does not discern any signs of upturn in the economy. Its policy of strict cost control means however that it can maintain generally its 2003 targets.
Consolidated sales
|
In millions of euros |
At current metal prices and exchange rates |
At constant metal prices and exchange rates |
| |
2002 |
2003 |
2002 |
2003 |
| Third quarter
Second quarter
First quarter Total at September 30 |
1,039
1,147
1,081
3,267 |
965
1,014
978
2,957 |
978
1,026
981
2,985 |
944
999
945
2,888 |
Sales by business sector at constant metal prices and exchange rates
|
In millions of euros |
Q3 |
First 9 months |
| |
2002 |
2003 |
2002 |
2003 |
|
Energy
Telecom
Electrical wires
Distribution and other
Total |
532
134
245
67
978 |
533
131
214
66
944 |
1,570
410
784
221
2,985 |
1,567
408
708
205
2,888 |
- Energy: (main activities)
| In millions of euros |
Q3.02 |
Q3.03 |
| Infrastructure |
209 |
209 |
| Building |
194 |
196 |
| Industry |
110 |
115 |
Energy sales remained stable compared to those of the third quarter last year, after including the impact of sales of 28 million euros resulting from the consolidation of Kukdong and the energy cable subsidiary of Furukawa in Brazil. But weak industrial capital expenditure and constant price pressure in the Building activity are adversely affecting performances in this sector. In this environment of stiffer competition, and out of a number of investigations carried out by the competition authorities in recent years, Nexans is currently involved in two investigations (in France and in Germany) relating to certain power cable markets. At the present time, the company has not received any notification arising from these investigations.
Nexans remains confident in the prospects of the energy market: the recent power failures in the United States, Canada and Italy have highlighted the lack of sufficient investment in electrical infrastructure in many countries, giving rise to hope that the major national operators will review their policies.
| In millions of euros |
Q3.02 |
Q3.03 |
| Infrastructure |
57 |
51 |
| Private networks |
52 |
50 |
| Industry |
25 |
30 |
As previously indicated, the sales level of the telecommunications activities have now stabilized and are continuing to benefit from ADSL deployment in Europe.
| In millions of euros |
Q3.02 |
Q3.03 |
| Wirerod |
132 |
109 |
| Bare wires |
25 |
25 |
| Winding wires |
88 |
80 |
The lower figure for Electrical Wires sales essentially reflects the difficulties on the Winding Wires market and the weak sales of Wirerod, particularly in North America. In Wirerod, Nexans has compensated for the weak external market by inter-group sales, to ensure that the plants' workloads remain at a satisfactory level.
| In millions of euros |
Q3.02 |
Q3.03 |
| Distribution |
67 |
65 |
The sales of the Distribution activity have been maintained at a satisfactory level.
The legal proceedings underway for several years between Nexans and Norwegian authorities concerning an alleged illicit agreement on list prices between several distribution companies have ended, and the case has been settled with no negative impact on profit.
Additionally, the negotiations with Platinum Equity concerning the sale of the distribution activities in Norway have ended, after Nexans rejected a renegotiation of the price by the buyer.
Outlook for 2003
The operational conditions of the cable market still remain just as difficult and there is no sign of an upturn in the countries in which Nexans operates.
In view of this context, which is broadly in line with Nexans' initial expectations, the Group is continuing to strictly apply its policy of stringent management controls, and maintains generally the objectives for its operating margin and financial ratios it presented to the markets at the close of the first half-year.
Financial calendar
- Publication of 2003 sales and results: February 2, 2004.
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