5
Prysmian Group Insight
QUARTERLY OVERVIEW
Utilities posted increase in profitability
Optical demand expected to gradually recover in coming quarters
Energy
Sales by the Energy Cables and
Systems business amounted
to €1,418 million compared
with €1,528 million in the first
quarter 2012, while Adjusted
EBITDA amounted to €91
million, compared with €95
million in the first quarter 2012.
Sales by the
Utilities
business
amounted to
€
491 million, recording
a 2.3% organic increase.
The positive performance reported
by the submarine cables business
line helped completely neutralize
poor performance by other business
lines, such as Power Distribution
in Europe. The improvement in
sales mix, with a larger proportion
of high value-added submarine
projects, has allowed adjusted
EBITDA to increase to
€
49 million
from
€
46 million in the first quarter
2012. While sales by the high
voltage underground line reported
a generally stable trend, sales by
the submarine cables and systems
business line increased thanks to
the execution of interconnection and
renewable energy projects acquired.
The order book at the end of the
first quarter 2013 further increased
thanks to over
€
450 million new
projects awarded (DolWin3,
Deutsche Bucht, Normandie 3) and
provides sales visibility for more
than 3 years.
Sales by the
Trade & Installers
business amounted to
€
470 million,
posting a negative organic variation
of 11.7% on the first quarter 2012.
Construction industry demand
showed further signs of contraction,
in particular in southern Europe,
following on from the decline
already recorded in the second half
of 2012. Adjusted EBITDA came to
€
14 million.
Sales by the
Industrial
business
amounted to
€
429 million, down
by 4.9% organically. The weak
start of the year for umbilicals and
flexible pipes should be recovered
in the umbilicals segment during
coming quarters. Specialties & OEM
and Elevator sales were up, along
with profitability. Adjusted EBITDA
amounted to
€
27 million, from
€
31
million on posted in the first quarter
2012.
Telecom
Sales by the Telecom Cables and
Systems business amounted to
€293 million, compared with
€346 million in the first quarter
2012, due to the drastic decline
in demand for optical cables
in North and South America.
Adjusted EBITDA amounted to
€24 million.
Incentive policies to stimulate
investments have been suspended
in the Americas, while a gradual
recovery is expected in the new
few quarters in Brazil, thanks to
the new incentive plan introduced
by the Government. Demand
is also expected to pick up in
China from the second quarter.
In Europe, however, plans for
investment in optical cabling by
large telecom operators are still at
a preliminary stage. The Multimedia
Solutions business line continued
its commercial expansion in South
America and Australia, while OPGW
performed well in Southern Europe,
the Middle East and Africa.
