General Cable Corporation Reports Second Quarter Results.Business Editors HIGHLAND HEIGHTS Highland Heights is the name of several places in the United States of America:
General Cable Corporation (NYSE NYSE See: New York Stock Exchange :BGC BGC General Cable Corporation (stock symbol) BGC Billy Graham Center BGC Baptist General Conference (formerly Swedish Baptist Denomination) BGC Boys & Girls Club BGC Bubblegum Crisis ) reported net income for the second quarter ended June June: see month. 30, 2002 of $4.3 million or $0.13 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, excluding nonrecurring Non`re`cur´ring a. 1. Nonrecurrent; as, the costs of a layoff are considered as a nonrecurring expense s>. pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $31 million related primarily to the closure of two plants and a charge related to discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. . Including the charges, the Company reported a net loss for the second quarter of $(15.7) million or $(0.48) per fully diluted share compared to net income of $15.2 million or $0.46 per diluted share in the second quarter of 2001. At $0.13 per share, the Company met the consensus earnings estimate for the quarter. The substantial decline in earnings for the quarter compared to the prior year was primarily due to a 29% decline in metals-adjusted communications revenue for the quarter. Excluding nonrecurring items, earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the . The Company's Board of Directors declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a quarterly cash dividend of $0.05 per common share to shareholders of record on August 7, 2002 payable on August 23, 2002. Management Comments "Our second quarter saw steady performance from our domestic Energy Segment, our International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. and our industrial business serving the maintenance and repair needs of our customers," said Gregory B. Kenny Ken·ny , Elizabeth 1880?-1952. Australian nurse who developed a simple treatment for the paralysis brought on by poliomyelitis. , President and Chief Executive Officer. "We are seeing no indications that order rates will improve near term in communication and industrial cables for large projects. Substantial cash generation, continued cost improvement and new customer development, remain our principal areas of focus," said Kenny. Second Quarter Results Metals-adjusted net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the Company's second quarter of 2002 decreased 12% versus the comparable 2001 second quarter. Contributing to the metals-adjusted net sales change was a 29% decline in Communications cable Communications cable A cable that transmits information signals between geographically separated points. The heart of a communications cable is the transmission medium, which may be optical fibers, coaxial conductors, or twisted wire pairs. sales and a 4% decline in Industrial and Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. cable sales partially offset by a 3% increase in Energy cable sales. The 29% decrease in the Communications Segment's metals-adjusted net sales reflects lower sales volume in all of the domestic Communications business units. Metals-adjusted net sales of outside plant telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. cable were off 39% as many customers significantly reduced their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. . As a low cost producer, this Segment had historically been one of the Company's most attractive businesses. Metals-adjusted net sales of premise cables decreased by 13% and net sales of central office products were down 38% over last year's second quarter. The timing of the resumption RESUMPTION. To reassume; to promise again; as, the resumption of payment of specie by the banks is general. It also signifies to take things back; as the government has resumed the possession of all the lands which have not been paid for according to the requisitions of the law, and the of sales to more historic levels of telecommunications cables to the regional telephone operating companies  This article has too many unnecessary external links.Please help Wikipedia by organising, removing or transferring them to other articles. The 4% decrease in metals-adjusted net sales in the Industrial and Specialty Segment was a result of continued weakness in demand for cables utilized in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with investment in new industrial construction and other major infrastructure projects. This weakness in demand was only partially mitigated mit·i·gate v. mit·i·gat·ed, mit·i·gat·ing, mit·i·gates v.tr. To moderate (a quality or condition) in force or intensity; alleviate. See Synonyms at relieve. v.intr. To become milder. by increased sales of industrial cables in the Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. market and a very focused sales effort to electrical distributors Noun 1. electrical distributor - electrical device that distributes voltage to the spark plugs of a gasoline engine in the order of the firing sequence distributer, distributor for electronic cables and portable cord A portable cord, which is also known as portable cordage or flexible cord, is a cable with multiple conductors used for functions requiring flexibility. The cord can be employed for power in a range of applications, such as operating motors in small and large tools, . The 3% increase in metals-adjusted net sales for Energy products reflects 2% higher net sales in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. as the Company realizes the effect of new contracts won during 2001 and 5% higher sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). as the Company continues to enjoy an increased presence with
major European Europeanemanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. utilities. For example, during the quarter the Company was awarded a two-year supply agreement with Electricite de France, one of Europe's largest electric utility companies. This major contract award for medium voltage The force, or pressure, of electricity. Also known as "potential." "Voltage drop" is the difference in voltage from one end of an electrical circuit to the other. For instructional purposes, voltage is often compared to water pressure. See volt-amps and current. energy cables commenced in June and is valued at the equivalent of $22 million over the next two years. The Company also expanded its position in the Italian and United Kingdom energy cables markets. Selling, general and administrative expense decreased to $31.4 million in the second quarter of 2002 from $37.5 million in the second quarter of 2001. The 16% decrease reflects the effect of an aggressive November November: see month. 2001 program to eliminate fixed SG&A expense and reduce controllable spending. Despite a 12% decline in reported net sales quarter-on-quarter, SG&A expense as a percent of metals-adjusted sales dropped from 8.4% in the second quarter of 2001 to 8.0% in the second quarter of 2002. The second quarter of 2002 net loss of $(15.7) million includes a continuing operations nonrecurring pre-tax charge of $25.0 million consisting of costs to close two manufacturing plants in North America, a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. to fair value of certain assets contributed to the Company's newly formed fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. joint venture and a charge related to the sale of the Company's non-strategic, United Kingdom-based specialty cables business. The second quarter 2002 net loss also includes a $6.0 million pre-tax charge for discontinued operations principally related to an estimated lower net realizable value Net realizable value (NRV) is a commonly used method of evaluating an asset's worth in the field of inventory accounting. NRV is part of GAAP rules that apply to valuing inventory, so as to not overstate or understate the value of inventory goods. for real estate remaining from the Company's former Building Wire business unit and a longer than anticipated holding period Anticipated holding period The period of time an individual expects to hold an asset. for three distribution centers with unexpired lease commitments. Of the $31.0 million of pre-tax charges recorded in the quarter, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $10.0 million were cash charges. Excluding the $25.0 million of nonrecurring items in the second quarter, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. from continuing operations for the second quarter of 2002 decreased to $17.4 million from $36.0 million for the second quarter in 2001 from the continuing operations. Operating income was down principally as a result of reduced sales volume in the Communications Segment and lower pricing in all three Segments. The negative effect of reduced sales volumes and lower pricing were partially offset by increased volume in the Energy Segment as well as rigorous cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. actions across the entire Company. Net interest expense was $10.7 million for the second quarter of 2002 compared to $10.5 million for the continuing operations in the second quarter of 2001, excluding nonrecurring interest expense items from the second quarter of 2001. The increase in interest expense is primarily the result of the amortization of bank fees that were incurred in conjunction with the amendment of the credit facility in the second quarter of 2002. Should the earnings in the Communications Segment remain depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. in the second half of the year, the Company would most likely require further amendments to its credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . If this occurs, the Company will likely incur To become subject to and liable for; to have liabilities imposed by act or operation of law. Expenses are incurred, for example, when the legal obligation to pay them arises. An individual incurs a liability when a money judgment is rendered against him or her by a court. additional fees and a higher credit spread for its borrowings. The effective tax rate for the second quarter of 2002 was unchanged from the 2001 rate of 35.5%. Six Month Results Metals-adjusted net sales for the Company's first half of 2002 decreased 14% versus the comparable 2001 first half. The average price per pound of copper and aluminum fell $0.06 and $0.08, respectively, from the first half of 2001 to the first half of 2002. The 2001 net sales have been lowered in this comparison to put them on a consistent metals-adjusted basis. Contributing to the metals-adjusted net sales change was a 30% decline in Communications cable sales and a 12% decline in Industrial and Specialty cable sales partially offset by a 2% increase in Energy cable sales. Removing the effect of divestitures from the 2001 first half, the Industrial and Specialty Segment's metals-adjusted sales were down 9% and total Company sales were down 13%. Selling, general and administrative expense decreased to $61.8 million in the first six months of 2002 from $75.9 million in the first six months of 2001. Despite a 14% decrease in metals-adjusted net sales for the first half of 2002 versus 2001, SG&A expense as a percentage of metals-adjusted sales decreased from 8.6% in 2001 to 8.2% in 2002. Operating income, excluding the nonrecurring charges Nonrecurring Charge An expense occurring only once on a company's financial statement. Notes: An extraordinary item is an example of a nonrecurring charge. Also known as "nonrecurring item". from both periods' results, decreased 49% from $68.3 million in 2001 to $35.1 million in 2002. Operating income decreased as a result of decreased volumes in the Communications Segment, reduced selling prices in all Segments, offset somewhat by increased international sales volume, increased manufacturing efficiencies and lower SG&A costs. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Comments "We are constantly monitoring the level of demand in our Communications businesses and will continue to rightsize our operations to address that updated view," said Kenny. "We remain highly focused on execution and cash generation. Our top priority is executing on our commitment to exceed our customers' expectations and on squeezing cash out of our business. In this regard, we plan to reduce our inventory by approximately $60 million by the end of the year. While this action will generate cash to reduce our debt, it will have a short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. negative effect on earnings as unabsorbed fixed plant overhead costs overhead costs see fixed costs. are recognized in the income statement." "Our international operations and our end-market diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. continue to somewhat mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. the decline in the
Communications market and the lack of major infrastructure projects
requiring cable," continued Kenny. "For instance, we have seen
pockets of increased demand for our industrial cables that go into the
oil, gas and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. market. However, the lack of clear visibility
into demand for our Communications products makes forecasting our
earnings for the remainder of the year quite difficult at this time. As
a result of both the negative effect on earnings of the inventory
reduction initiative and the depressed level of demand in the
telecommunications market, we expect that we will operate at or close to
breakeven breakeven1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations on an EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. basis for the second half of the year. Absent the inventory reduction, we would expect second half EPS performance to roughly equal the first half," concluded Kenny. General Cable (NYSE:BGC), headquartered in Highland Heights, Kentucky Highland Heights is a city in Campbell County, Kentucky in the United States. The population was 6,554 at the 2000 census. Highland Heights is home to Northern Kentucky University. , is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the communications, energy, industrial and specialty markets. The Company offers competitive strengths in such areas as breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of product line, brand recognition, distribution and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , sales and service and operating efficiency. Communications wire and cable products transmit To send data over a communications line. See transfer. low-voltage adj. 1. (Electricity) subjected to or capable of operating under relative low voltage, usually considered as no greater than 250 volts. Contrasted with high-voltage nt>. Adj. 1. signals for voice, data, video and control applications. Energy cables include low-, medium- and high-voltage adj. 1. having, operating on, or powered by high voltage; as, a high-voltage generator; a high-voltage line s>. 2. same as high-powered. Adj. 1. power distribution and power transmission products. The Industrial and Specialty Segment is comprised of application-specific cables for uses such as electrical power generation (traditional fuels, alternative and renewable sources, and distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or ), the oil, gas and petrochemical industries, mining, industrial automation, marine, military and aerospace applications, power applications in the telecommunications industry, and other key industrial segments. Visit our website at www.GeneralCable.com. Certain statements in this press release, including without limitation, statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors include domestic and local country price competition, particularly in certain segments of the power cable and other competitive pressures; general economic conditions, particularly in construction; changes in customer purchasing patterns in our business segments; the Company's ability to increase manufacturing capacity and productivity; the Company's ability to successfully complete and integrate acquisitions and divestitures; the cost of raw materials, including copper; the impact of foreign currency fluctuations; the impact of technological changes; the Company's ability to achieve productivity improvements; and other factors which are discussed in the Company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 29, 2002, as well as periodic reports filed with the Commission. TABLES TO FOLLOW
General Cable Corporation and Subsidiaries
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
Three Months Ended June
-----------------------------
Fav/
2002 2001 (Unfav) %
------- ------- ------- -----
Net sales $ 393.7 $ 449.9 (56.2) (12%)
Cost of sales 349.0 376.4 27.4 7%
------- ------- -------
Gross profit 44.7 73.5 (28.8) (39%)
Selling, general and
administrative expenses 31.4 37.5 6.1 16%
Unusual items 20.9 - (20.9) N/A
------- ------- -------
Operating income (loss) (7.6) 36.0 (43.6) (121%)
Other income - 8.1 (8.1) N/A
Interest income (expense):
Interest expense (11.0) (10.8) (0.2) (2%)
Interest income 0.3 0.3 0.0 N/A
Other financial costs - (6.0) 6.0 N/A
------- ------- -------
(10.7) (16.5) 5.8 35%
Earnings (loss) before
income taxes (18.3) 27.6 (45.9) (166%)
Income tax (provision)
benefit 6.5 (9.8) 16.3 166%
------- ------- -------
Income (loss) from
continuing operations (11.8) 17.8 (29.6) (166%)
Discontinued Operations
-----------------------
Loss from discontinued
operations (net of tax) - (2.6) 2.6 N/A
Loss on disposal of discontinued
operations (net of tax) (3.9) - (3.9) N/A
------- ------- -------
Net income (loss) $ (15.7) $ 15.2 (30.9) N/A
======= ======= =======
EPS of Continuing Operations
----------------------------
Earnings (loss) per
common share $ (0.36) $ 0.55 (0.91) (165%)
======= ======= =======
Weighted average
common shares 33.0 32.6 N/A
======= =======
Earnings (loss) per
common share-
assuming dilution $ (0.36) $ 0.54 (0.90) (167%)
======= ======= =======
Weighted average
common shares-
assuming dilution 33.2 32.7 N/A
======= =======
EPS Including Discontinued
Operations
--------------------------
Earnings (loss) per
common share $ (0.48) $ 0.47 (0.95) (202%)
======= ======= =======
Earnings (loss) per
common share-
assuming dilution $ (0.48) $ 0.46 (0.94) (204%)
======= ======= =======
Six Months Ended June 30
-----------------------------
Fav/
2002 2001 (Unfav) %
------- ------- ------- -----
Net sales $ 755.1 $ 901.6 (146.5) (16%)
Cost of sales 662.3 757.4 95.1 13%
------- ------- -------
Gross profit 92.8 144.2 (51.4) (36%)
Selling, general and
administrative expenses 61.8 75.9 14.1 19%
Unusual items 20.9 (8.7) (29.6) N/A
------- ------- -------
Operating income (loss) 10.1 77.0 (66.9) (87%)
Other income - 8.1 (8.1) N/A
Interest income (expense):
Interest expense (21.4) (24.5) 3.1 13%
Interest income 0.6 0.7 (0.1) (14%)
Other financial costs - (10.4) 10.4 N/A
------- ------- -------
(20.8) (34.2) 13.4 39%
Earnings (loss) before
income taxes (10.7) 50.9 (61.6) (121%)
Income tax (provision)
benefit 3.8 (18.2) 22.0 121%
------- ------- -------
Income (loss) from
continuing operations (6.9) 32.7 (39.6) (121%)
Discontinued Operations
-----------------------
Loss from discontinued
operations (net of tax) - (6.0) 6.0 N/A
Loss on disposal of discontinued
operations (net of tax) (3.9) - (3.9) N/A
------- ------- -------
Net income (loss) $ (10.8) $ 26.7 (37.5) N/A
======= ======= =======
EPS of Continuing Operations
----------------------------
Earnings (loss) per
common share $ (0.21) $ 1.00 (1.21) (121%)
======= ======= =======
Weighted average
common shares 33.0 32.6 N/A
======= =======
Earnings (loss) per
common share-
assuming dilution $ (0.21) $ 0.98 (1.19) (121%)
======= ======= =======
Weighted average
common shares-
assuming dilution 33.2 33.2 N/A
======= =======
EPS Including Discontinued
Operations
--------------------------
Earnings (loss) per
common share $ (0.33) $ 0.82 (1.15) (140%)
======= ======= =======
Earnings (loss) per
common share-
assuming dilution $ (0.33) $ 0.80 (1.13) (141%)
======= ======= =======
General Cable Corporation and Subsidiaries
Supplement to Press Release
(in millions, except per share data)
(unaudited)
2002 2001
----------------------- -----------------------
Three Months Ended Three Months Ended
June 30 June 30
----------------------- -----------------------
Results Results
Adjustments excluding Adjustments excluding
for non- non- for non- non-
recurring recurring recurring recurring
Reported items items Reported items items
------- ------- ------- ------- ------- -------
Net sales $ 393.7 $ - $ 393.7 $ 449.9 $ - $ 449.9
Cost of sales 349.0 (4.1) 344.9 376.4 376.4
------- ------- ------- ------- ------- -------
Gross profit 44.7 4.1 48.8 73.5 - 73.5
Selling, general
and administrative
expenses 31.4 31.4 37.5 37.5
Unusual items 20.9 (20.9) - - -
------- ------- ------- ------- ------- -------
Operating income (loss) (7.6) 25.0 17.4 36.0 - 36.0
Other income - - 8.1 (8.1) -
Interest income
(expense):
Interest expense (11.0) (11.0) (10.8) (10.8)
Interest income 0.3 0.3 0.3 0.3
Other financial costs - - (6.0) 6.0 -
------- ------- ------- ------- ------- -------
(10.7) - (10.7) (16.5) 6.0 (10.5)
Earnings (loss)
before income taxes (18.3) 25.0 6.7 27.6 (2.1) 25.5
Income tax
(provision) benefit 6.5 (8.9) (2.4) (9.8) 0.7 (9.1)
------- ------- ------- ------- ------- -------
Income (loss) from
continuing operations (11.8) 16.1 4.3 17.8 (1.4) 16.4
Discontinued Operations
-----------------------
Loss from discontinued
operations (net of tax) - - (2.6) (2.6)
Loss on disposal of
discontinued operations
(net of tax) (3.9) 3.9 - - -
------- ------- ------- ------- ------- -------
Net income (loss) $(15.7) $ 20.0 $ 4.3 $ 15.2 $(1.4) $ 13.8
======= ======= ======= ======= ======= =======
EPS of Continuing Operations
----------------------------
Earnings (loss) per
common share $(0.36) $0.13 $ 0.55 $ 0.50
======= ======= ======= =======
Weighted average
common shares 33.0 33.0 32.6 32.6
======= ======= ======= =======
Earnings (loss) per
common share-
assuming dilution $(0.36) $ 0.13 $ 0.54 $ 0.50
======= ======= ======= =======
Weighted average
common shares-
assuming dilution 33.2 33.2 32.7 32.7
======= ======= ======= =======
EPS Including
Discontinued Operations
------------------------
Earnings (loss) per
common share $(0.48) $ 0.13 $ 0.47 $ 0.42
======= ======= ======= =======
Earnings (loss) per
common share-
assuming dilution $(0.48) $ 0.13 $ 0.46 $ 0.42
======= ======= ======= =======
General Cable Corporation and Subsidiaries
Supplement to Press Release
(in millions, except per share data)
(unaudited)
2002 2001
----------------------- -----------------------
Six Months Ended Six Months Ended
June 30 June 30
----------------------- -----------------------
Results Results
Adjustments excluding Adjustments excluding
for non- non- for non- non-
recurring recurring recurring recurring
Reported items items Reported items items
------- ------- ------- ------- ------- -------
Net sales $ 755.1 $ - $ 755.1 $ 901.6 $ - $ 901.6
Cost of sales 662.3 (4.1) 658.2 757.4 757.4
------- ------- ------- ------- ------- -------
Gross profit 92.8 4.1 96.9 144.2 - 144.2
Selling, general and
administrative expenses 61.8 61.8 75.9 75.9
Unusual items 20.9 (20.9) - (8.7) 8.7 -
------- ------- ------- ------- ------- -------
Operating income (loss) 10.1 25.0 35.1 77.0 (8.7) 68.3
Other income - - - 8.1 (8.1) -
Interest income (expense):
Interest expense (21.4) (21.4) (24.5) - (24.5)
Interest income 0.6 0.6 0.7 - 0.7
Other financial costs - - (10.4) 10.4 -
------- ------- ------- ------- ------- -------
(20.8) - (20.8) (34.2) 10.4 (23.8)
Earnings (loss)
before income taxes (10.7) 25.0 14.3 50.9 (6.4) 44.5
Income tax
(provision) benefit 3.8 (8.9) (5.1) (18.2) 2.2 (16.0)
------- ------- ------- ------- ------- -------
Income (loss) from
continuing operations (6.9) 16.1 9.2 32.7 (4.2) 28.5
Discontinued Operations
-----------------------
Loss from discontinued
operations (net of tax) - - (6.0) - (6.0)
Loss on disposal of
discontinued operations
(net of tax) (3.9) 3.9 - - - -
------- ------- ------- ------- ------- -------
Net income (loss) $(10.8) $ 20.0 $ 9.2 $ 26.7 $ (4.2) $ 22.5
======= ======= ======= ======= ======= =======
EPS of Continuing Operations
----------------------------
Earnings (loss)
per common share $(0.21) $ 0.28 $ 1.00 $ 0.87
======= ======= ======= =======
Weighted average
common shares 33.0 33.0 32.6 32.6
======= ======= ======= =======
Earnings (loss)
per common share-
assuming dilution $(0.21) $ 0.28 $ 0.98 $ 0.86
======= ======= ======= =======
Weighted average
common shares-
assuming dilution 33.2 33.2 33.2 33.2
======= ======= ======= =======
EPS Including
Discontinued Operations
------------------------
Earnings (loss)
per common share $(0.33) $ 0.28 $ 0.82 $ 0.69
======= ======= ======= =======
Earnings (loss)
per common share-
assuming dilution $(0.33) $ 0.28 $ 0.80 $ 0.68
======= ======= ======= =======
General Cable Corporation and Subsidiaries
Consolidated Statements of Operations (continued)
Segment Information
(in millions, except per share data)
(unaudited)
----------------------- -----------------------
Three Months Ended Six Months Ended
June 30 June 30
----------------------- -----------------------
Fav/ Fav/
2002 2001 (Unfav) 2002 2001 (Unfav)
------- ------- ------- ------- ------- -------
Revenues (as reported)
---------------------
Communications Group $ 119.2 $ 168.5 (49.3)$ 225.0 $ 325.6 (100.6)
Energy Group 137.8 137.8 0.0 272.3 277.1 (4.8)
Specialty Group 136.7 143.6 (6.9) 257.8 298.9 (41.1)
------- ------- ------- ------- ------- -------
Total 393.7 449.9 (56.2) 755.1 901.6 (146.5)
======= ======= ======= ======= ======= =======
Revenues (metal adjusted)
------------------------
Communications Group $ 119.2 $ 167.9 (48.7)$ 225.0 $ 320.6 (95.6)
Energy Group 137.8 134.5 3.3 272.3 266.4 5.9
Specialty Group 136.7 143.0 (6.3) 257.8 293.6 (35.8)
------- ------- ------- ------- ------- -------
Total 393.7 445.4 (51.7) 755.1 880.6 (125.5)
======= ======= ======= ======= ======= =======
Operating Profit (Loss)
----------------------
Communications Group $ 5.3 $ 18.4 (13.1) $ 9.9 $ 33.4 (23.5)
Energy Group 9.6 9.3 0.3 19.9 20.2 (0.3)
Specialty Group 2.5 8.3 (5.8) 5.3 14.7 (9.4)
------- ------- ------- ------- ------- -------
Subtotal 17.4 36.0 (18.6) 35.1 68.3 (33.2)
Unusual Items (25.0) - (25.0) (25.0) 8.7 (33.7)
------- ------- ------- ------- ------- -------
Total (7.6) 36.0 (43.6) 10.1 77.0 (66.9)
======= ======= ======= ======= ======= =======
Return on Metal Adjusted Sales
------------------------------
Communications Group 4.4% 11.0% (6.6%) 4.4% 10.4% (6.0%)
Energy Group 7.0% 6.9% 0.1% 7.3% 7.6% (0.3%)
Specialty Group 1.8% 5.8% (4.0%) 2.1% 5.0% (2.9%)
------- ------- ------- ------- ------- -------
Subtotal 4.4% 8.1% (3.7%) 4.6% 7.8% (3.1%)
Unusual Items -6.4% - N/A -3.3% 1.0% N/A
------- ------- ------- ------- ------- -------
Total -1.9% 8.1% (10.0%) 1.3% 8.7% (7.4%)
======= ======= ======= ======= ======= =======
Capital Expenditures
--------------------
Communications Group $ 2.3 $ 5.5 (3.2) $ 4.3 $ 10.0 (5.7)
Energy Group 3.4 5.6 (2.2) 5.1 10.1 (5.0)
Specialty Group 3.7 3.2 0.5 6.3 6.4 (0.1)
------- ------- ------- ------- ------- -------
Total $ 9.4 $ 14.3 (4.9) $ 15.7 $ 26.5 (10.8)
======= ======= ======= ======= ======= =======
Depreciation
------------
Communications Group $ 4.1 $ 3.9 0.2 $ 8.4 $ 8.0 0.4
Energy Group 1.2 0.7 0.5 2.5 1.5 1.0
Specialty Group 2.2 2.2 0.0 4.4 4.6 (0.2)
------- ------- ------- ------- ------- -------
Total 7.5 6.8 0.7 15.3 14.1 1.2
======= ======= ======= ======= ======= =======
GENERAL CABLE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in millions, except share data)
ASSETS June 30, December 31,
2002 2001
---------- ----------
Current Assets: (unaudited)
Cash $ 21.5 $ 16.6
Receivables, net 210.2 188.9
Inventories 314.0 315.4
Deferred income taxes 27.5 27.5
Prepaid expenses and other 22.3 23.9
---------- ----------
Total current assets 595.5 572.3
Property, plant and equipment, net 316.4 320.9
Deferred income taxes 40.5 65.0
Other non-current assets 57.1 47.1
---------- ----------
Total assets $ 1,009.5 $ 1,005.3
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 286.0 $ 249.4
Accrued liabilities 133.3 128.5
Current portion of long-term debt 21.5 24.5
---------- ----------
Total current liabilities 440.8 402.4
Long-term debt 387.2 421.0
Deferred income taxes 2.1 2.9
Other liabilities 76.7 74.1
---------- ----------
Total liabilities 906.8 900.4
---------- ----------
Shareholders' Equity:
Common stock, $0.01 par value:
Issued and outstanding shares:
June 30, 2002 - 33,119,465
(net of 4,745,425 treasury shares)
December 31, 2001 - 32,838,227
(net of 4,745,425 treasury shares) 0.4 0.4
Additional paid-in capital 99.2 96.4
Treasury stock (50.0) (50.0)
Retained earnings 74.6 88.9
Accumulated other comprehensive loss (16.6) (25.7)
Other shareholders' equity (4.9) (5.1)
---------- ----------
Total shareholders' equity 102.7 104.9
---------- ----------
Total liabilities and
shareholders' equity $ 1,009.5 $ 1,005.3
========== ==========
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