Nexans : Nexans : 2013 First-Quarter Financial Information

          Nexans : Nexans : 2013 First-Quarter Financial Information


                                                                 Press release

                   2013 First-Quarter Financial Information

  *Activity in  the first  quarter fell  3.4% at  current scope  and 5.6%  at 
    constant scope as a result of a high baseline effect (strong first quarter

  *Stable price environment

  *Strong growth in  submarine transmission  reflecting a  gradual return  to 
    normal at operational level

  *Implementation of the measures  designed to deliver  benefits in 2014  and 
    2015 from the strategic initiatives announced in February 2013

Paris, April 25,  2013 - Nexans  today announced 2013  first-quarter sales  of 
1.668 billion  euros, that  is, 1.130  billion euros  at constant  non-ferrous 
metal prices^[1].  The corresponding  figure for  the first  quarter 2012  was 
1.169 billion euros resulting in an organic contraction of nearly 5.6%^[2].

As the company was expecting, the first quarter 2013 saw a significant organic
contraction caused  by  the  combined  effect of  a  high  first-quarter  2012 
baseline, a  deteriorating global  economy  in the  second  half of  2012  and 
unfavorable weather conditions that delayed the installation of infrastructure

This contraction resulted in a  sharp slowdown in non-high voltage  activities 
(-8%) in all geographical areas and in all businesses. Within this same scope,
there was a sequential contraction (the  first quarter 2013 compared with  the 
last quarter  2012),  except in  Europe  which  rose 1.7%.  Within  this  same 
context, the Group has not noted any price decreases.

High voltage activity  rose, at a  constant scope, overall  by 8.3%, of  which 
submarine cables by 22.3% reflecting the  gradual return to normal in  Norway. 
The start is  slower in land  high voltage  but sales should  increase in  the 
second quarter.

The company is expecting a second  quarter 2013 to be significantly higher  in 
particular following  the  especially  unfavorable weather  conditions  and  a 
correction in the land high voltage trend (see above).

Finally, the  Group is  putting in  place the  operational levers  to  improve 
performance in 2014 and 2015. Additionally, in Europe, the Group is mobilizing
its teams to  prepare a  plan to  generate savings  which will  be subject  to 
consultation with employee representatives in the third quarter.


                             Q1 2012      Q1 2013        Organic     Organic
                                                         growth      growth
   (millions of euros)     At constant  At constant    Q1 2013 vs. Q1 2013 vs.
                           metal prices metal prices     Q1 2012     Q4 2012
Distributors and               332          295          -10.1%       -3.1%
Industry                       281          294           -2.5%       -3.4%
Transmission, Distribution     481          470           -4.5%      -13.2%
and Operators
o/w Transmission                                       +8.3%      -25.5%
Other                           75           71           -4.9%       3.7%
Group total                   1,169        1,130          -5.6%       -7.3%

With sales  of  295 million  euros,  the Distributors  &  Installers  business 
reported an organic contraction of 10.1% compared with the first quarter 2012.
This evolution is mainly attributable to  the sharp slowdown in Europe in  the 
middle of last year resulting in a  very unfavorable base effect on the  first 
quarter 2013.

The sequential analysis reveals  an organic contraction  of 3.1% reflecting  a 
good performance in Brazil, steady sales in Europe and a slowdown in the other

In Europe, France showed a strong  resilience compared with the last  quarter. 
On the  other  hand,  sales  in  Scandinavia  tapered  because  harsh  weather 
conditions slowed progress at construction sites.

Activity in North America  was impacted by heavy  stock reductions for  mining 
projects, especially in Canada.

In Asia-Pacific,  the  trend remains  positive  in South  Korea,  whereas  the 
situation in Australia remains delicate because  of weak demand from the  main 
distributors. A reorganization plan involving 60 employees has been launched.

Industry business  sales  come to  294  million  euros, that  is,  an  organic 
contraction of 2.5% compared with the first quarter 2012. This reflects weaker
activity in  Europe in  some capital  goods segments  starting in  the  second 
quarter 2012.

The sequential  analysis  reveals an  organic  contraction of  3.4%  for  this 
sector. This figure breaks down into the following contrasting trends:

  *the good performance of automotive harnesses in Europe, which continue  to 
    benefit from their position with high end German automotive manufacturers,
    reporting double-digit growth;

  *stable performance by the transportation sector in the first three  months 
    of the year, both  in Europe and  in Asia. Growth in  Europe is driven  by 
    sales to the aeronautical, railways and shipbuilding industries; in  Asia, 
    growth contracted  sharply  in China  attributable  to the  two  weeks  of 
    Chinese New Year  during which activity  all but ceases.  In South  Korea, 
    dynamic offshore activity offset the more tempered rate in shipbuilding in
    the first quarter; 

  *ongoing  weak  demand  in  the  other  European  capital  goods/automation 
    segments among  others  and a  cable  inventory reduction  effect  in  the 
    resources sector in North America.

Sales for the  Transmission, Distribution  and Operators  segment reported  an 
organic contraction of  4.5% from  481 million euros  in 2012  to 470  million 
euros in 2013.

Transmission (high voltage) reported organic growth of 8.3% compared with  the 
first quarter 2012.

For land high voltage cables, the expected slow start should correct itself in
the second  quarter. The  bidding activity  in response  to call  for  tenders 
remains active ;  the Westermost Rough  Wind Farm contract  has been  recently 

Submarine high voltage business grew by 22.3% compared with the first  quarter 
2012. The Halden plant  is gradually regaining a  normal level of  production. 
The improvement to the margin will be  felt more strongly at the end of  2013, 
after  delivering  those  contracts  with   their  margins  affected  by   the 
operational difficulties experienced in 2012.

Distribution and  Operator business  posted an  organic contraction  of  11.2% 
compared with the  first quarter  2012. This  is attributable  to the  sharply 
slowing sales  since the  second half  2012  in the  MERA, South  America  and 
Asia-Pacific areas, and to a lesser extent in the European markets.

The sequential  analysis reveals  a 3.4%  contraction compared  with the  last 
quarter. It reflects  a slightly positive  trend in Europe  and Latin  America 
(Peru),  but  negative  in  North  America  and  the  MERA  area  (Morocco  in 

Operator business sales  rose sharply  largely because  copper cable  business 
continues to trend well in Lebanon and Latin America.

Sales for Other business came to 71 million euros, reflecting negative organic
growth of 4.9% compared with the first quarter 2012.

Other information

For the purposes of consolidating Nexans by the equity method in the  Madeco's 
first-quarter consolidated accounts, the following non-operational  accounting 
data is provided: change in shareholders'  equity linked to the fair value  of 
metal hedging instruments (-9 million  euros), change in shareholders'  equity 
attributable to conversion differences (+39 million euros), and core  exposure 
effect (-3 million euros).

There will be a telephone conference (in English) today at 10:00 a.m. (GMT+1).
The local numbers to call are:

  *In France: 01 70 77 09 43

  *In the UK: +44 (0) 203 367 9458 

  *In the USA: +1 866 907 5924

The local numbers to call to listen to a repeat of the conference (available
within 2 hours) are:

  *In France: 01 72 00 15 00 (in English)

  *In the UK: +44 (0) 203 367 9460 

  *In the USA: +1877 642 3018 

To listen to the conference, when requested, please dial 281428 followed by
the pound (#) sign.

Financial calendar
May 14, 2013:     Annual Shareholders' Meeting
May 30, 2013:     Individual shareholder information meeting in Lille*
July 25, 2013:    2013 first-half financial results
* Provisional date subject to change

Readers are also invited to log onto the Group Internet site where they can in
particular consult the  presentation of  the annual results  to analysts,  the 
full financial statements for the year  ended at December 31^st, 2012 and  the 
registration document for 2012 including details of risk factors for the Group
and confirmation of  the risks  related to the  competition investigations  in 
Europe, the  United States,  Canada,  Brazil, Australia  and South  Korea  for 
alleged anticompetitive behavior in submarine and underground power cables and
associated services and equipment, the results and consequences of which could
have a material adverse effect on  the Group's results and thus its  financial 

Information of a prospective nature in this press release is dependent on  the 
risks and uncertainties, known or unknown at this date, that may impact on the
Company's future performance, and which may differ considerably.

In addition  to the  risk factors,  the main  uncertainties weighing  on  2013 
concern in particular:

  *The global economic environment

  *The resilience of energy infrastructure markets in emerging countries 

  *The growth of  renewable energy  and the  oil &  gas markets,  as well  as 
    clients' investment programs in these segments 

  *The  recovery  of  cables  for   industry  in  certain  segments  of   the 
    transportation industry, such as  shipbuilding, automation and the  growth 
    of railways in China 

  *The  Group's  ability  to  improve  its  profitability  and  increase  its 

  *The assumption of limited impact in 2013 of the competition investigations
    commenced in 2009, and in any event consistent with the accounting options

  *The Group's  ability  to  integrate its  acquisitions,  benefit  from  its 
    partnerships and  complete planned  divestments  under the  best  possible 

  *The risk of client credit, especially  in Europe and Egypt, and even  more 
    particularly in Greece where credit risk is no longer insurable 

  *The business risk in the Middle East and in North Africa.

About Nexans

With energy at the basis of  its development, Nexans, worldwide expert in  the 
cable industry, offers an extensive range of cables and cabling solutions. The
Group is a global player in the energy transmission and distribution, industry
and building markets. Nexans addresses a wide series of market segments:  from 
energy and telecom networks to energy resources (wind turbines,  photovoltaic, 
oil  and  gas,  and   mining)  to  transportation  (shipbuilding,   aerospace, 
automotive and automation, and railways).  Nexans is a responsible  industrial 
company that regards  sustainable development  as integral to  its global  and 
operational  strategy.  Continuous  innovation  in  products,  solutions   and 
services, employee development  and commitment, customer  orientation and  the 
introduction of safe  industrial processes with  limited environmental  impact 
are among the key initiatives that place  Nexans at the core of a  sustainable 

With  an  industrial  presence  in  40  countries  and  commercial  activities 
worldwide, Nexans employs 25,000  people and had sales  in 2012 of nearly  7.2 
billion euros. Nexans is listed on NYSE Euronext Paris, compartment A.
For more information, please consult:

Additional information:

Financial Communication            Communication
Michel Gédéon                      Jean-Claude Nicolas
Tel: +33 (0)1 73 23 85 31        Tel : + 33 (0)1 73 23 84 51
e-mail:  e-mail :
Laura Duquesne                     Angéline Afanoukoe
Tél: + 33 (0)1 73 23 84 61        Tel: + 33 (0)1 73 23 84 12
e-mail : e-mail:
Carole Vitasse
Tél: + 33 (0)1 73 23 84 56


                            (in millions of euros)

                                         First quarter
                                          2012   2013
At current metal prices                   1,752  1,668
At constant metal prices                  1,169  1,130
      Sales at current metal prices by business
Transmission, Distribution and Operators    582    581
Industry                                    364    377
Distributors & Installers                   579    513
Other                                       228    197
Total Group                               1,752  1,668
      Sales at constant metal prices by business
Transmission, Distribution and Operators    481    470
Industry                                    281    294
Distributors & Installers                   332    295
Other                                        75     71
Total Group                               1,169  1,130

[1]To  neutralize  the  effect  of  variations  in  the  purchase  price   of 
non-ferrous metals and  therefore measure the  underlying sales trend,  Nexans 
also calculates its sales using a constant price for copper and aluminum.

[2]The 2012 sales  on the  basis of  comparable data  correspond to  constant 
non-ferrous metal sales, recalculated after adjustments for exchange rates and
scope. The exchange effect on 2012 first-quarter sales at constant non-ferrous
metal prices is -6 million euros and the scope effect is 32 million euros.

130425-Nexans Q1 13-GB


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Source: Nexans via Thomson Reuters ONE
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