CONSOlidaTEd FiNaNCial STaTEmENTS >
DIRECTORS’ REPORT
74
| 2012 aNNual rEpOrT prySmiaN grOup
FINANCIAL PERFORMANCE
Stable sales and increased profitability thanks to recovery in demand in various parts
of the world.
Sales to third parties by the Industrial business area amounted
to Euro 1,801 million at 31 December 2012, compared with
Euro 1,824 million pro-forma in 2011. The reduction of Euro 23
million (-1.3%) is due to the following factors:
• organic decrease in sales of Euro 27 million (-1.5%), recorded
in the last quarter of the year mainly due to a contraction in
volumes in the Oil & Gas and Renewables sector;
• positive exchange rate effects of Euro 54 million (+3.0%);
• negative change of Euro 50 million (-2.8%) in sales prices
due to fluctuations in metal prices.
In Europe, Prysmian Group focused its commercial efforts
on the Oil & Gas industry with products destined for the
Norwegian market and for export to the major energy-
producing nations, as well as on the Renewables industry with
cables for wind and solar applications. This successfully made
up for the decline in volumes in the Automotive industry,
particularly evident in the French market, and in the rail and
civil infrastructure sectors.
Prysmian Group pursued opportunities arising from
infrastructure development in the Middle East, a market
traditionally served by its European subsidiaries.
The strategy of technological specialisation of the solutions
offered boosted elevator market sales in North America, of
which the World Trade Center project is the prime example.
Similarly, consolidation of the Group’s commercial structure
in North America made it possible to exploit certain
opportunities in the US onshore drilling sector.
During the fourth quarter of the year, the automotive sector
was able to respond quickly to market demand in the United
States, thanks to investments in the Mexican production
facility.
Sales of flexible pipes, manufactured at the new Vila Velha
plant and destined for markets in South America, remained
stable in the third quarter but declined in the last quarter of
the year.
The Asia-Pacific region offered the Group the most attractive
growth opportunities in the first half of the year, thanks to
recovery of market share in Australia and specific actions to
penetrate the Renewables market in China.
Adjusted EBITDA came to Euro 139 million at 31 December
2012, reporting an increase of Euro 23 million (+20%) on
the 2011 pro-forma figure, due to a modest recovery in Oil &
Gas sector demand in various parts of the world, and to the
development of the elevator cables business in North America.
OTHER
This business area encompasses occasional sales by Prysmian
Group operating units of semi-finished products, raw materials
or other products forming part of the production process.
These sales are normally linked to local business situations, do
not generate high margins and can vary in size from period to
period.
(*) 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 (*)
2010
pro-forma
Sales to third parties
135
167
124
adjusted EbiTda
1
5
4
adjusted operating income
(3)
2
3
