General Cable Corporation
) reported fourth-quarter 2011 earnings per share of 9 cents, below
the Zacks Consensus Estimate of 37 cents. The earnings per share
were below the prior-year earnings per share of 66 cents.
Excluding the impact of 10 cents per share of non-cash
convertible debt interest expense and 11 cents per share of
mark-to-market losses on financial derivatives, adjusted non-GAAP
earnings per share came in at 30 cents in the quarter.
For 2011, earnings per share were $1.61 compared with $1.33 in
2010. The Zacks Consensus Estimate for the year was $2.26.
Total revenue, on a metal-adjusted basis, in the quarter
increased by 8% year over year to $1,369.1 million.
Volume based on metal pounds sold declined 5% year over year
driven by weaker demand experienced throughout Europe in
non-project based businesses. On a sequential basis, volume inched
down 4% during the quarter due to weak Iberian market and the
impact of severe flooding in Thailand, partially offset by strong
shipment of aerial transmission product in North America and
European projects in submarine power and terrestrial high voltage
and extra-high voltage businesses.
Sales volume in North America, measured in terms of metal pounds
sold, was down 6% year over year, in Europe and Mediterranean
decreased 22% and in ROW climbed 10%.
Income and Expenses
Operating income in the quarter was $31.7 million compared with
$63.2 million in the prior-year period. Selling, general and
administrative expenses were $95.9 million compared with $83.2
Cash and cash equivalents were $434.1 million at the end of the
year, with long-term debt of $892.6 million and shareholders equity
of $1.51 billion.
The company expects revenue in first-quarter 2012 to be in the
range of $1.35 billion to $1.45 billion and operating income to be
in the range of $35 million to $45 million. Total revenue is
expected to be in the range of $1.40 billion to $1.45 billion.
Volume in the quarter is expected to be flat sequentially. General
Cable's guidance reflects major volatility seen in metal prices,
principally copper as well as uncertainties in European market.
In 2012, demand for the full year is an increase of metal pounds
sold in the range of 3%-7% year over year.
Headquartered in Highland Heights, Kentucky, General Cable is
engaged in the development, design, manufacture, marketing, and
distribution of copper, aluminum and fiber optic wire and cable
products for the energy, industrial, specialty, and communications
markets. The company offers competitive strengths in areas, such as
breadth of product line, brand recognition, distribution and
logistics, sales and service, and operating efficiency.
General Cable Corporation holds a Zacks #3 rank (short-term Hold
GENL CABLE CORP (
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