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Paris, October 18, 2004 - Nexans today announced sales of 1,186 million euros for the third quarter of 2004. Sales for the nine months to September 30 came to 3,564 million euros.
At constant non-ferrous metal prices*, third quarter sales totaled 1,007 million euros, compared to 931 million euros for the third quarter of 2003, representing growth of 8.2% at constant exchange rates. Sales for the nine months climbed to 3,036 million euros, an increase of 7.1% (+6.2% at constant perimeter) compared to the same period in 2003. Sales were up across all business lines and geographical areas. Third quarter sales figures do not include the companies acquired in July (Liban Cables and Cabloswiss), which will be consolidated at year end.
Based on the recovery seen in all business sectors, Nexans maintains its full-year forecasts of organic sales growth (+5%) and operating margin (3%).
Consolidated sales*
* To neutralize the effect of variations in the purchase price of non-ferrous metals and thus measure its effective sales evolution, Nexans also calculates its sales using a constant price for copper and aluminum.
|
in millions of euros |
At current metal prices |
At constant metal prices |
At constant metal prices and exchange rates |
| |
2003 |
2004 |
2003 |
2004 |
2003 |
2004 |
Third quarter
Second quarter
First quarter
Total at September 30 |
965
1,014
978
2,957 |
1,186
1,287
1,091
3,564 |
944
999
945
2,888 |
1,007
1,077
952
3,036 |
931
988
914
2,833 |
1,007
1,077
952
3,036 |
Sales by business sector (at constant metal prices and exchange rates*)
|
in millions of euros |
Q3 |
First nine months |
| |
2003 |
2004 |
2003 |
2004 |
|
Energy
Distribution
Telecom
Electrical wires
Other
Total |
527
65
126
211
2
931 |
559
71
144
230
3
1,007 |
1,543
195
393
699
3
2,833 |
1,663
208
422
734
8
3,036 |
- Energy (main activities at constant metal prices and exchange rates):
| in millions of euros |
Q3.03 |
Q3.04 |
Infrastructure
|
218 |
244 |
| Building |
177 |
180 |
| Distribution |
65 |
71 |
| Industry |
119 |
124 |
The cable market for infrastructure continued to expand, fueled by strong demand for high-voltage and umbilical cables and satisfactory growth in sales of medium and low-voltage cables in Europe.
In the building market, sales were uneven in Europe, primarily due to the sluggish business environment in Germany. Margins stabilized following an integration in sales prices of the rise in copper prices.
Distribution activities in Norway and Switzerland continued to post strong performances. These businesses, which essentially serve clients in the building sector, will in the future be reported together with the Group's building activities.
The sharp rise in sales of industrial cables and wires was chiefly driven by increased demand among clients in the automotive and shipbuilding markets.
- Telecom (at constant metal prices and exchange rates)
| in millions of euros |
Q3.03 |
Q3.04 |
| Infrastructure |
51 |
56 |
| Private local and area networks (LAN) |
47 |
58 |
| Industry |
28 |
30 |
This activity continues to benefit from the cost reduction measures introduced in the last two years.
Sales of telecom cables for infrastructure rose substantially, bolstered by the continued roll-out of ADSL internet services in Europe.
In private local area networks, the Group recorded a sharp rise in North American sales and saw the first signs of a turnaround in Europe.
- Electrical wires: (at constant metal prices and exchange rates)
| in millions of euros |
Q3.03 |
Q3.04 |
| Wirerod |
107 |
124 |
| Bare wires |
25 |
29 |
| Winding wires |
79 |
77 |
Wirerod and Bare Wire sales continued to post satisfactory growth.
Despite the recovery in demand in Europe, overall Winding Wires sales were impacted by the sale of the US based Winding Wires activity.
Sales by geographical area
|
in millions of euros |
Current metal prices |
Constant metal prices |
Constant metal prices
and exchange rates |
| |
Q3.03 |
Q3.04 |
Q3.03 |
Q3.04 |
Q3.03 |
Q3.04 |
Europe
North America
Asia
Rest of the world
Total
|
705
175
47
38
965 |
840
237
62
47
1,186 |
697
164
45
38
944 |
736
173
54
44
1,007
|
697
155
42
37
931 |
736
173
54
44
1,007 |
In Europe, high-voltage sales (cables and accessories) recorded by Norway, Belgium and Switzerland increased significantly. Sales in France resumed an upward course, thanks to the recovery in demand for private local area networks and the stabilization of sales in the Building activities. Sales of energy and telecoms cables for infrastructure also rose in Spain. By contrast, Germany experienced a difficult third quarter.
In North America, third quarter sales were up 12% over the same period last year, driven by strong sales of energy activities in Canada and copper cables for private local area networks in the United States.
In Asia, all countries contributed to a spectacular rise in sales (+29%).
Infrastructure expansion in developing countries also gave a significant boost (+19%) to sales in the Rest of the World.
Financial Calendar
- October 21, 2004: Individual shareholders meeting in Bordeaux
- February 3, 2005: Full-year results
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