CORPORATE NEWS:
Nexans improves profit margin to 3.3%
Nexans, France, has announced interim results that reveal sales growth of 6.6% in 2004 to just over 4 billion Euros.
Chairman Gérard Hauser comments:
“The encouraging results for 2004 mean that we can anticipate growth in our business in 2005 between 3 and 4%, at constant exchange rates and metal prices, with further improvement in operating margin.”
In individual business sectors, sales in the energy cables market increased most (by 8.9% to 2,593 million Euros). High voltage and umbilical cables once again recorded impressive results, according to a company statement, while cables for the building market were boosted by the buoyancy of the North American market and by the positive effects of price increases and restructuring measures in Europe. It is reported that industrial cables achieved a turnaround in operating profitability.
The telecom cables market recorded Nexans second largest sales growth (by 8.2% to 570 million Euros). “Following three years of crisis, this business returned to profitability in 2004, with an operating margin of 3%,” says the company. “Growth in ADSL in Europe boosted the infrastructure business. Private Local Area Network (LAN) cables continued to perform well in the United States and Brazil, while the first signs of a recovery for these products appeared in Europe.”
Sales in the electrical wire sector totalled 985 million Euros in 2004, an increase of 4.2%. The company states: “In the wire rod market we were able to maintain our market share despite strong pressure on prices and unfavourable exchange rates between the US and Canadian dollars.
The winding wires business returned to profitability following the sale of the American activity and the restructuring programmes implemented in Europe.”
Looking at activities by region, Europe accounts for Nexans’ largest tranche of income, followed by North America and then Asia: sales were 3,048 million Euros, 697 million Euros and 214 million Euros respectively.
Company: |
Nexans |
Country: |
France |
Fax: |
+33 1 56 69 84 84 |
Email: |
|
Website: |
www.nexans.com |