General Cable Corporation Provides Update on Fourth Quarter 2012 Results and Initial View of 2013

  General Cable Corporation Provides Update on Fourth Quarter 2012 Results and
  Initial View of 2013

Business Wire

HIGHLAND HEIGHTS, Ky. -- February 7, 2013

General Cable Corporation (NYSE: BGC) expects to report that its North America
and Rest of World (ROW) businesses finished the year with a positive operating
performance in the fourth quarter, excluding the impact of certain items. The
acquisitions of Alcan Cable North America, Prestolite and Procables (Colombia)
are also expected to contribute meaningfully to the fourth quarter results.
However, the Company now expects adjusted operating income for the fourth
quarter in the range of $45 to $47 million, which includes the absorption of
$12 million of expenses related to the revised estimated profitability of
certain submarine turnkey projects. The Company expects reported operating
income in the range of $2 to $4 million for the fourth quarter. The Company
expects the following items will negatively affect its reported fourth quarter
results:

  *An equipment failure at the Company’s submarine power cable manufacturing
    facility in Germany as well as submarine turnkey project delays and
    deferrals are expected to result in one-time charges in the range of $16
    million
  *Other items consisting of year-end adjustments in ROW including financial
    restatement and forensic investigation costs, one-off
    restructuring-related tax charges, acquisition costs and severance-related
    charges in Spain, which are collectively expected to result in charges in
    the range of $37 million

Submarine Turnkey Projects - The Company is in the process of finalizing the
impact of the equipment failure and continued project delays/deferrals and has
initiated steps to potentially recover certain of these costs through legal
action and insurance coverage.

Other Items - During the fourth quarter, the Company expects to record several
year-end adjustments in ROW particularly as it relates to the collectability
of certain customer accounts receivable, a portion of which are in dispute, as
well as the net realizable value of certain other assets. The Company also
restructured its legal entities to integrate the Alcan Cable Canada business,
which will result in a more tax efficient structure going forward. The Company
does not expect to experience this level of adjustments in ROW going forward
nor does the Company expect to incur restructuring-related tax charges or
financial restatement and forensic investigation costs on a regular basis as
these items relate to specific events and transactions experienced in 2012.

Initial View of 2013 Business Trends - “Despite the impact of these items in
the fourth quarter of 2012, we believe demand growth drivers in important
markets in North America and ROW are fundamentally unchanged. We are also
encouraged by the performance of recent acquisitions including Alcan Cable,
Prestolite and Procables as well as the potential of our long-term growth
investments in Brazil, India, Mexico, Peru, and South Africa. For 2013, the
Company is expecting to generate operating income in the range of $300 - $340
million as we focus on the integration of recent acquisitions and continuous
improvement at our manufacturing facilities around the world. Unit volume for
2013 is expected to be in the range of 1.4 to 1.5 billion metal pounds,
including approximately 350 to 400 million metal pounds from acquisitions
completed in 2012. For 2013, we expect our recent acquisitions along with our
base business in the Americas, Africa, and Asia Pacific to continue to show
improvement. Our Europe and Mediterranean segment is expected to contribute in
the range of 3-6% of overall operating income in 2013 driven by our businesses
throughout the region as our Iberian and submarine turnkey project businesses
are expected to operate around breakeven. While the Spanish end market is
expected to remain difficult in 2013, our actions taken in Spain over the last
four years to reduce our ongoing cost base and deliver growth in our exports
from Spain should help offset continuing weakness in the domestic market,”
said Gregory B. Kenny, President and Chief Executive Officer of General Cable.

Summary of items excluded from adjusted results:

A summary and the Company’s current estimate of items expected to affect
fourth quarter reported results follows:

                                                               Q4 2012
                                        Q4 2012
In millions                                                  Estimated
                                        Estimated Items ^(1)
                                                               EPS Impact ^(2)
Submarine turnkey project business
Equipment failure and project           $         16           $      0.31
delays/deferrals
Other items
ROW year-end adjustments
Disputed accounts receivable                      9                   0.14
Other year-end adjustments                        10                  0.15
Restatement and forensic
investigation costs, acquisition and              8                   0.12
severance-related charges in Spain
                                                                      
One-off tax charge in connection with
the restructuring of legal entities               10                  0.20
to integrate the Alcan Cable Canada
business
Call premium for $200 million of
7.125% senior fixed rate notes and                9                   0.11
related fee write-off ^(3)
                                                                   
Total                                   $         62           $      1.03
                                                                      

(1)  Items reflect the impact of specific events and transactions experienced
      in the fourth quarter of 2012
(2)   Computed based on the estimated effective tax rate for the respective
      location/jurisdiction
(3)   Amount is consistent with management’s previously communicated fourth
      quarter of 2012 outlook on October 29, 2012
      

Updated fourth quarter outlook - Adjusted operating income:

A summary of management’s updated expectations for the fourth quarter follows:

In millions                                                   Q4 2012 Outlook
Midpoint of management’s previous communication on October     $    60
29, 2012 of adjusted operating income range of $55 - $65
                                                                    
Business performance^(1)                                            (1 - 3)
Absorption of submarine turnkey projects revised estimated          (12)
profitability
                                                                   
Adjusted operating income range                                $    45- 47
                                                                    

      Reflects current estimates which are subject to change due to the normal
(1)  year-end financial statement closing process to be completed over the
      next two weeks
      

The Company will host a webcast tomorrow morning, February 8, 2013 at 10:00
a.m. ET. Chief Executive Officer Gregory B. Kenny and Chief Financial Officer
Brian J. Robinson will discuss the above items and the Company’s initial view
of 2013. Media and investors may access the live audio webcast at
www.generalcable.com beginning at 10:00 a.m. ET on Friday, February 8, 2013.
The webcast will also be available for replay.

The Company will webcast a discussion of its fourth quarter 2012 earnings on
Monday, February 25, 2013 at 10:00 a.m. ET. Chief Executive Officer Gregory B.
Kenny and Chief Financial Officer Brian J. Robinson will discuss the fourth
quarter results and provide additional information on the Company’s 2013
expectations. The Company will also provide an update on the expected timing
of filing its restated financial statements stemming from the inventory errors
in Brazil and South Africa as disclosed in previous Company filings with the
Securities and Exchange Commission. Based on the preliminary findings in the
internal review to date, the Company does not believe that its previously
disclosed estimates of the amounts of understated cost of sales and overstated
inventory will change materially. The news release detailing the fourth
quarter results will be issued before the market opens on Monday, February 25,
2013. Media and investors may access the live audio webcast at
www.generalcable.com beginning at 10:00 a.m. ET on Monday, February 25, 2013.
The webcast will also be available for replay.

Reconciliation of Non-GAAP Measures

In addition to reporting financial results in accordance with accounting
principles generally accepted in the United States (GAAP), we discuss adjusted
operating income for the fourth quarter of 2012 as adjusted for certain items
including charges for an equipment failure at the Company’s submarine power
cable manufacturing facility and submarine turnkey project delays and
deferrals, ROW year-end adjustments, restatement and forensic investigation
costs, acquisition costs and severance-related charges in Spain. This
Company-defined adjusted measure is being provided because management believes
it is useful in analyzing the operating performance of the business and
consistent with how management reviews underlying business trends. This
non-GAAP measure may be inconsistent with similar measures presented by other
companies and should only be used in conjunction with our results reported
according to GAAP. A reconciliation of estimated operating income as reported
to estimated adjusted non-GAAP operating income follows:

                                                                  Q4 2012
In millions                                                     
                                                                  Outlook ^(1)
Estimated operating income, GAAP                                  $   2 - 4
Submarine business equipment failure and project                      16
delays/deferrals
ROW year-end adjustments
Disputed accounts receivable                                          9
Other year-end adjustments                                            10
Restatement and forensic investigation costs, acquisition and        8
severance-related charges in Spain
Estimated adjusted operating income, Non-GAAP                     $   45 - 47
                                                                      

      Reflects current estimates which are subject to change due to the
(1)  year-end financial statement closing process to be completed over the
      next two weeks
      

General Cable (NYSE:BGC), a Fortune 500 Company, is a global leader in the
development, design, manufacture, marketing and distribution of copper,
aluminum and fiber optic wire and cable products for the energy, industrial,
specialty, construction and communications markets. For more information about
General Cable products, please contact your local sales representative or
visit our Web site at www.generalcable.com.

Forward Looking Statements

Certain statements in this press release are forward-looking statements that
involve risks and uncertainties, predict or describe future events or trends
and that do not relate solely to historical matters. Forward looking
statements can generally be identified by use of forward-looking terminology
such as “believe,” “expect,” “may,” “will,” “anticipate,” “intend,”
“estimate,” “project,” “plan,” “assume,” “seek to” or other similar
expressions, although not all forward-looking statements contain these
identifying words. Actual results may differ materially from those discussed
in forward-looking statements as a result of factors, risks and uncertainties
over many of which we have no control. These factors include, but are not
limited to: the economic strength and competitive nature of the geographic
markets that the Company serves; our ability to increase manufacturing
capacity and productivity, our ability to increase our selling prices during
periods of increasing raw material costs; our ability to service, and meet all
requirements under, our debt, and to maintain adequate domestic and
international credit facilities and credit lines; the impact of unexpected
future judgments or settlements of claims and litigation; the impact of
foreign currency fluctuations, compliance with U.S. and foreign laws, the
Company’s ability to implement and make appropriate, timely and beneficial
decisions as to when, how and if to purchase shares under the repurchase
program and the other risks detailed from time to time in the Company’s
filings with the Securities and Exchange Commission (“SEC”), including but not
limited to, its annual report on Form 10-K filed with the SEC on February 23,
2012, and subsequent SEC filings. You are cautioned not to place undue
reliance on these forward-looking statements. General Cable does not
undertake, and hereby disclaims, any obligation, unless required to do so by
applicable securities laws, to update any forward-looking statements as a
result of new information, future events or other factors.

Contact:

General Cable Corporation
Len Texter, Director, Investor Relations, 859-572-8684
 
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