|By Business Wire||
|February 7, 2013 04:32 PM EST||
General Cable Corporation (NYSE: BGC) expects to report that its North America and Rest of World (ROW) businesses finished the year with a positive operating performance in the fourth quarter, excluding the impact of certain items. The acquisitions of Alcan Cable North America, Prestolite and Procables (Colombia) are also expected to contribute meaningfully to the fourth quarter results. However, the Company now expects adjusted operating income for the fourth quarter in the range of $45 to $47 million, which includes the absorption of $12 million of expenses related to the revised estimated profitability of certain submarine turnkey projects. The Company expects reported operating income in the range of $2 to $4 million for the fourth quarter. The Company expects the following items will negatively affect its reported fourth quarter results:
- An equipment failure at the Company’s submarine power cable manufacturing facility in Germany as well as submarine turnkey project delays and deferrals are expected to result in one-time charges in the range of $16 million
- Other items consisting of year-end adjustments in ROW including financial restatement and forensic investigation costs, one-off restructuring-related tax charges, acquisition costs and severance-related charges in Spain, which are collectively expected to result in charges in the range of $37 million
Submarine Turnkey Projects - The Company is in the process of finalizing the impact of the equipment failure and continued project delays/deferrals and has initiated steps to potentially recover certain of these costs through legal action and insurance coverage.
Other Items - During the fourth quarter, the Company expects to record several year-end adjustments in ROW particularly as it relates to the collectability of certain customer accounts receivable, a portion of which are in dispute, as well as the net realizable value of certain other assets. The Company also restructured its legal entities to integrate the Alcan Cable Canada business, which will result in a more tax efficient structure going forward. The Company does not expect to experience this level of adjustments in ROW going forward nor does the Company expect to incur restructuring-related tax charges or financial restatement and forensic investigation costs on a regular basis as these items relate to specific events and transactions experienced in 2012.
Initial View of 2013 Business Trends - “Despite the impact of these items in the fourth quarter of 2012, we believe demand growth drivers in important markets in North America and ROW are fundamentally unchanged. We are also encouraged by the performance of recent acquisitions including Alcan Cable, Prestolite and Procables as well as the potential of our long-term growth investments in Brazil, India, Mexico, Peru, and South Africa. For 2013, the Company is expecting to generate operating income in the range of $300 - $340 million as we focus on the integration of recent acquisitions and continuous improvement at our manufacturing facilities around the world. Unit volume for 2013 is expected to be in the range of 1.4 to 1.5 billion metal pounds, including approximately 350 to 400 million metal pounds from acquisitions completed in 2012. For 2013, we expect our recent acquisitions along with our base business in the Americas, Africa, and Asia Pacific to continue to show improvement. Our Europe and Mediterranean segment is expected to contribute in the range of 3-6% of overall operating income in 2013 driven by our businesses throughout the region as our Iberian and submarine turnkey project businesses are expected to operate around breakeven. While the Spanish end market is expected to remain difficult in 2013, our actions taken in Spain over the last four years to reduce our ongoing cost base and deliver growth in our exports from Spain should help offset continuing weakness in the domestic market,” said Gregory B. Kenny, President and Chief Executive Officer of General Cable.
Summary of items excluded from adjusted results:
A summary and the Company’s current estimate of items expected to affect fourth quarter reported results follows:
Estimated Items (1)
EPS Impact (2)
|Submarine turnkey project business|
|Equipment failure and project delays/deferrals||$||16||$||0.31|
|ROW year-end adjustments|
|Disputed accounts receivable||9||0.14|
|Other year-end adjustments||10||0.15|
|Restatement and forensic investigation costs, acquisition and severance-related charges in Spain||8||0.12|
|One-off tax charge in connection with the restructuring of legal entities to integrate the Alcan Cable Canada business||10||0.20|
|Call premium for $200 million of 7.125% senior fixed rate notes and related fee write-off (3)||9||0.11|
Items reflect the impact of specific events and transactions experienced in the fourth quarter of 2012
Computed based on the estimated effective tax rate for the respective location/jurisdiction
Amount is consistent with management’s previously communicated fourth quarter of 2012 outlook on October 29, 2012
Updated fourth quarter outlook - Adjusted operating income:
A summary of management’s updated expectations for the fourth quarter follows:
|In millions||Q4 2012 Outlook|
|Midpoint of management’s previous communication on October 29, 2012 of adjusted operating income range of $55 - $65||$||60|
|Business performance(1)||(1 - 3)|
|Absorption of submarine turnkey projects revised estimated profitability||(12)|
|Adjusted operating income range||$||45- 47|
Reflects current estimates which are subject to change due to the normal year-end financial statement closing process to be completed over the next two weeks
The Company will host a webcast tomorrow morning, February 8, 2013 at 10:00 a.m. ET. Chief Executive Officer Gregory B. Kenny and Chief Financial Officer Brian J. Robinson will discuss the above items and the Company’s initial view of 2013. Media and investors may access the live audio webcast at www.generalcable.com beginning at 10:00 a.m. ET on Friday, February 8, 2013. The webcast will also be available for replay.
The Company will webcast a discussion of its fourth quarter 2012 earnings on Monday, February 25, 2013 at 10:00 a.m. ET. Chief Executive Officer Gregory B. Kenny and Chief Financial Officer Brian J. Robinson will discuss the fourth quarter results and provide additional information on the Company’s 2013 expectations. The Company will also provide an update on the expected timing of filing its restated financial statements stemming from the inventory errors in Brazil and South Africa as disclosed in previous Company filings with the Securities and Exchange Commission. Based on the preliminary findings in the internal review to date, the Company does not believe that its previously disclosed estimates of the amounts of understated cost of sales and overstated inventory will change materially. The news release detailing the fourth quarter results will be issued before the market opens on Monday, February 25, 2013. Media and investors may access the live audio webcast at www.generalcable.com beginning at 10:00 a.m. ET on Monday, February 25, 2013. The webcast will also be available for replay.
Reconciliation of Non-GAAP Measures
In addition to reporting financial results in accordance with accounting principles generally accepted in the United States (GAAP), we discuss adjusted operating income for the fourth quarter of 2012 as adjusted for certain items including charges for an equipment failure at the Company’s submarine power cable manufacturing facility and submarine turnkey project delays and deferrals, ROW year-end adjustments, restatement and forensic investigation costs, acquisition costs and severance-related charges in Spain. This Company-defined adjusted measure is being provided because management believes it is useful in analyzing the operating performance of the business and consistent with how management reviews underlying business trends. This non-GAAP measure may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to GAAP. A reconciliation of estimated operating income as reported to estimated adjusted non-GAAP operating income follows:
|Estimated operating income, GAAP||$||2 - 4|
|Submarine business equipment failure and project delays/deferrals||16|
|ROW year-end adjustments|
|Disputed accounts receivable||9|
|Other year-end adjustments||10|
|Restatement and forensic investigation costs, acquisition and severance-related charges in Spain||8|
|Estimated adjusted operating income, Non-GAAP||$||45 - 47|
Reflects current estimates which are subject to change due to the year-end financial statement closing process to be completed over the next two weeks
General Cable (NYSE:BGC), a Fortune 500 Company, is a global leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty, construction and communications markets. For more information about General Cable products, please contact your local sales representative or visit our Web site at www.generalcable.com.
Forward Looking Statements
Certain statements in this press release are forward-looking statements that involve risks and uncertainties, predict or describe future events or trends and that do not relate solely to historical matters. Forward looking statements can generally be identified by use of forward-looking terminology such as “believe,” “expect,” “may,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume,” “seek to” or other similar expressions, although not all forward-looking statements contain these identifying words. Actual results may differ materially from those discussed in forward-looking statements as a result of factors, risks and uncertainties over many of which we have no control. These factors include, but are not limited to: the economic strength and competitive nature of the geographic markets that the Company serves; our ability to increase manufacturing capacity and productivity, our ability to increase our selling prices during periods of increasing raw material costs; our ability to service, and meet all requirements under, our debt, and to maintain adequate domestic and international credit facilities and credit lines; the impact of unexpected future judgments or settlements of claims and litigation; the impact of foreign currency fluctuations, compliance with U.S. and foreign laws, the Company’s ability to implement and make appropriate, timely and beneficial decisions as to when, how and if to purchase shares under the repurchase program and the other risks detailed from time to time in the Company’s filings with the Securities and Exchange Commission (“SEC”), including but not limited to, its annual report on Form 10-K filed with the SEC on February 23, 2012, and subsequent SEC filings. You are cautioned not to place undue reliance on these forward-looking statements. General Cable does not undertake, and hereby disclaims, any obligation, unless required to do so by applicable securities laws, to update any forward-looking statements as a result of new information, future events or other factors.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
Mar. 24, 2017 06:00 AM EDT Reads: 8,362
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Mar. 24, 2017 04:30 AM EDT Reads: 2,485
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 24, 2017 04:15 AM EDT Reads: 1,131
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 24, 2017 04:15 AM EDT Reads: 1,215
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
Mar. 24, 2017 03:30 AM EDT Reads: 3,170
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 24, 2017 01:45 AM EDT Reads: 1,250
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
Mar. 24, 2017 01:30 AM EDT Reads: 3,494
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
Mar. 23, 2017 11:30 PM EDT Reads: 4,366
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 23, 2017 11:30 PM EDT Reads: 746
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Mar. 23, 2017 10:15 PM EDT Reads: 3,283
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
Mar. 23, 2017 07:15 PM EDT Reads: 4,310
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
Mar. 23, 2017 06:00 PM EDT Reads: 1,357
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 23, 2017 04:15 PM EDT Reads: 2,491
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 23, 2017 03:45 PM EDT Reads: 1,798
SYS-CON Events announced today that Telecom Reseller has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. Telecom Reseller reports on Unified Communications, UCaaS, BPaaS for enterprise and SMBs. They report extensively on both customer premises based solutions such as IP-PBX as well as cloud based and hosted platforms.
Mar. 23, 2017 03:30 PM EDT Reads: 1,732
SYS-CON Events announced today that Ocean9will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Ocean9 provides cloud services for Backup, Disaster Recovery (DRaaS) and instant Innovation, and redefines enterprise infrastructure with its cloud native subscription offerings for mission critical SAP workloads.
Mar. 23, 2017 03:30 PM EDT Reads: 1,631
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 23, 2017 02:30 PM EDT Reads: 1,491
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
Mar. 23, 2017 12:45 PM EDT Reads: 1,726
SYS-CON Events announced today that Addteq will exhibit at SYS-CON's DevOps Summit at Cloud Expo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Addteq specializes in creating innovative solutions to solve business processes through the use of DevOps automation. Addteq was founded on the firm belief that automation is essential for successful software releases. Addteq's products and services are centered around the fundamental approach of understanding the pr...
Mar. 23, 2017 12:30 PM EDT Reads: 2,791
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
Mar. 23, 2017 09:30 AM EDT Reads: 2,572