Continued improvement in margins (ADJ EBITDA/Sales) for Energy Projects (17%) and Telecom (16.8%)
The Board of Directors of Prysmian S.p.A. has approved today the Group's consolidated results for the first half of 2017.
"The first half of the year has seen a sharp increase in profitability, with improving margins in the strategic Energy Projects and Telecom businesses," explained CEO Valerio Battista. "Sales have posted a marked improvement in the second quarter after a poor start due to adverse phasing in the Energy Projects business. The Group's profitability has continued to grow thanks to the contribution of the Telecom and Energy Projects businesses. The Industrial business has also enjoyed a positive trend with an order backlog providing a strong outlook for the rest of the year. The major projects awarded not only in the Energy Projects business for the IFA2 interconnector and new offshore wind farm cabling in France but also in the Telecom business with the $300 million Verizon agreement, validate the Group's investment strategy aimed at building up submarine project execution capabilities and optical fibre and optical cable production capacity. The FY 2017 outlook is confirmed with an increase of Adjusted EBITDA forecast in the range of €710-€750 million."
Global economic growth in the first half of 2017 was higher than expected thanks to performance by emerging countries (Brazil, China and Mexico) and consolidation of the positive trend by more developed economies. After an uncertain start to the year marked by lower-than-expected growth, positive jobs data in the United States indicate a clear recovery since the second quarter. China recorded improved economic growth in the second quarter.
The Group is forecasting Adjusted EBITDA for FY 2017 in the range of €710-750 million, up from the €711 million reported in 2016. This forecast is not only based on the Company’s current business perimeter but also takes into account the current order book.