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October 27th, 2009
- Reports
Highland Heights Kentucky - General Cable reports income drop
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General Cable, a global wire and cable maker, said Monday its third quarter net income dipped to $16.4 million, or 31 cents per share, compared to a year ago when the firm reported net income of $50.5 million, or 94 cents per share. The firm said net sales for the quarter were roughly $1.08 billion, a 25.1 percent decrease from $1.6 billion reported in the third quarter of 2008. Operating income before certain items was $49.4 million compared to $121.4 million in the third quarter of 2008, a decrease of $72 million or 59.3 percent. The decrease in operating income was principally the result of a significant decline in prices in response to lower overall demand in many of the company’s end markets, lower capacity utilization, and the unfavorable impact of changes in foreign currency translation, partially offset by lower selling, general and administrative expenses resulting from continuous cost improvement efforts.
“The company is facing a demand environment in North America which is much worse than the last recession earlier this decade, while demand in Iberia is off nearly 50 percent," said Gregory B. Kenny, president and chief executive officer of General Cable in a statement.
"Despite the significant contraction in our end markets, the actions we have taken over the last few years to geographically diversify the business and expand our product portfolio have enabled us to continue to report positive earnings and cash flows."
For the fourth quarter, the company said it expects to report earnings before the impact of non-cash convertible interest expense in the range of 20 cents to 30 cents per share while revenues are expected to be approximately $1.05 billion to $1.10 billion.
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