Consolidated Financial Statements >
Directors’ Report
68
| 2012 annual report prysmian group
TRADE & INSTALLERS
During 2012 the range of products and services was further extended and specialised.
MARKET OVERVIEW
Differing performance of reference markets, affected by credit restrictions in some
European countries.
The Prysmian Group produces a comprehensive range of rigid
and flexible low voltage cables for distributing power to and
within residential and non-residential buildings in compliance
with international standards.
Product development and innovation particularly focuses on
high performance cables, such as Fire-Resistant cables and
Low Smoke zero Halogen (LSOH) cables, which are used in all
those applications where safety must be guaranteed. In fact,
in the event of fire, Fire-Resistant cables continue to operate
and Low Smoke zero Halogen cables have reduced emissions
of toxic gas and smoke.
The reference markets have distinct geographical
characteristics (despite international product standards) both
in terms of customer and supplier fragmentation and the
range of items produced and sold.
Construction industry demand, already depressed in 2011,
declined even more in Central and Southern Europe during
2012, while remaining generally stable in Northern and Eastern
Europe.
Throughout the year, persistent uncertainty about future
prospects for the construction industry prevailed over the
positive effects of stable metal and commodity prices; as
a result, the largest industry players continued to maintain
minimum stocks and constant pressure on sales prices.
During the past year the range of products and services has
been further extended and specialised with the addition of
cables for infrastructure such as airports, ports and railway
stations.
Prysmian Group’s customers for these products cover a
wide spectrum, from international distributors and buying
syndicates to installers and wholesalers.
In Europe, countries like Spain and Italy particularly suffered
because of the negative impact on the property market of their
tough restrictions on bank credit.
Following rising demand for products for infrastructure
projects in the first six months of the year, markets in North
America remained stable in the second half of the year
mainly due to the US presidential election and expectations
concerning energy-efficient construction incentives.
Even in the last quarter of the year, markets in South America
confirmed slightly higher volumes, driven by the industrial and
residential construction sectors.
(*) The pro-forma figures are calculated by aggregating the Draka Group’s results for the two-month pre-acquisition period (January-February) with the consolidated
figures.
(in milions of Euro)
2012
2011 (*)
% Change
% Organic
2010
Pro-forma
sales change
Sales to third parties
2,159
2,233
-3.3%
-2.6%
1,465
Adjusted EBITDA
77
73
36
% of sales
3.6%
3.3%
2.4%
Adjusted operating income
49
35
20
% of sales
2.3%
1.6%
1.4%
