CHICAGO General Cable
Corp. is hoping for a rebound in the second quarter after a
weak start to 2013 following a net loss at the end of 2012.
conditions" in Europe hurt the companys fourth-quarter
results, and the region is expected to continue to drag on its
performance in the first quarter, the copper, aluminum, and
fiber-optic wire and cable products company said in an outlook
accompanying earnings data released Feb. 25.
The Highland Heights, Ky.-based
company also expects its results to be hurt by a $42-million
charge related to the devaluation of Venezuelas
General Cable posted a net loss
of $17.3 million during the quarter on sales of $1.6 billion.
Year-ago results werent immediately available, as they
were being revisited due to inventory theft at its Brazilian
operations. The theft, which might be covered in part by
insurance, was previously thought to be related to accounting
errors, the company said. Restated financial results are
expected to be available later this week.
While first-quarter activity
might be slow, General Cable expects a "sharp improvement" in
the second quarter as construction activity ramps up,
benefitting businesses such as Alcan Cable North America. Other
recent acquisitions should further bolster results in the
second half of the year, the company said.
General Cable last year
completed its $151-million cash acquisition of Alcan
Cables North American operations from London-based Rio
Tinto Plc (
amm.com, Sept. 5) and a related purchase of Alcan
Cable China for $34 million (
amm.com, Dec. 4).
The company also had completed
its acquisition of Prestolite Wire LLC on Nov. 2, it said.
In North America, the
residential and nonresidential construction sectors drive
demand for roughly 45 percent of General Cables products,
including those manufactured by Alcan Cable North America,
General Cable said.
"While the operating environment
remains challenging in some markets and product lines, we are
encouraged by the demand growth drivers," General Cable
president and chief executive officer Gregory B. Kenny said in
General Cable should benefit
from growth in the energy and infrastructure sectors, as well
as increased construction activity. The company expects
strength in housing-related utility and construction products
in the United States, and in construction and electrical
infrastructure spending in Asia, it said. Spending in Brazil
ahead of the 2014 World Cup and the 2016 Olympics, as well as
government-sponsored programs, should also boost demand in
South America in 2013, the company said.
In a separate development,
General Cable said it had made Gregory J. Lampert responsible
for all company operations in the Americas. Lampert has served
as executive vice president, president and chief executive
officer of General Cable North America since 2008. The company
also promoted Peter A. Campbell to executive vice president and
chief executive officer of the Asia-Pacific region, it said.
Campbell joined General Cable more than two years ago as senior
vice president of Asia.