wiredInUSA June 2018

Image: Nexans

First quarter results show minor dip

Nexans is amongst the cable and wire companies announcing first quarter 2018 results. The company revealed that sales for the period amounted to €1,538 million (versus €1,570 million for the same quarter 2017). After a record performance in 2017, which saw a 23.8 percent sales increase in the first quarter of the year, high voltage project activities reported a 30.5 percent year-on- year sales decline. The main reasons for this contraction are that revenue is now recognized at a later stage of project completion (following theapplicationof IFRS 15) and that the timing of various projects in progress provides a less favorable picture than in 2017. The situation is expected to reverse in the second half year.

remained high in the quarter, following on from the strong levels seen in 2017.

Sales of industrial cables edged up 0.6 percent, with a 2.4 percent increase in automotive harnesses, a 36.7 percent decline for oil and gas sector cables, and a 4.4 percent rise for other industrial cables. The telecom and data segment reported a 2.3 percent overall contraction in sales, reflecting a slight 0.3 percent increase for LAN cables, a 2.1 percent drop for telecom infrastructure cables and an 11.8 percent decrease for submarine specialty cables. Commenting on the performance, Arnaud Poupart Lafarge, Nexans’ CEO, said that cable activities sales have picked up pace after a disappointing start to 2018, pointing to a gradual improvement as the year progresses.

Meanwhile output from the group’s submarine high voltage cable plants

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wiredInUSA - June 2018