3
Prysmian Group Insight
Signs of recovery
in the second Q
Prysmian Group results for the
showed signs
of improvement starting from
the second quarter of the year,
when both sales and profitability
increased over the first quarter,
while remaining below the results
from the same period in 2012. The
Group's consolidated results for the
first half of the year, approved by
the Board of Directors, showed an
Adj. EBITDA of
€
282 million and
sales of
€
3,622 million.
CEO Valerio Battista pointed
out that these signs of
improvement acquire special
relevance in a market scenario
that, despite the beginnings of
a stabilisation phase, remains
difficult,
especially because of
the construction industry crisis
in Europe and uncertainties over
broadband stimulus programmes in
North and South America.
The positive performance
reported by power transmission
QUARTERLY OVERVIEW
Profitability increased in the second quarter, to rise further
FY 2013 Adj. EBITDA Target (€ million)
308
282
H1 2012 H1 2013
600
650
339
343
H2 2012 H2 2013E
• Continuous weakness
in European cyclical
businesses
• Strong growth in
Transmission contribution
• Slight recovery in
Telecom vs. H1
• Limited improvement in
Industrial (OGP &
Renewables)
• H1 consistent with
FY target
• Weak telecom
performance due to
lower demand in US
and South America
• Bottom in cyclical
businesses in Europe
• Strong decrease
in Renewables
cables and by cables for
higher value-added industrial
applications have allowed the
Group to limit the effects of
lower volumes for building
wires and for industrial
renewable energy cables in
Europe and of the drop in
demand for optical cables in
the American continent.
Prysmian Group expects
profitability to improve in the
second half, particularly thanks
to high voltage underground
and submarine cables for power
transmission, whose order book has
risen to more than
€
2.8 billion. With
the goal of achieving the expected
full-year target of an adjusted
EBITDA in the range of
€
600-
€
650
million, the Group also confirmed
its focus on cost containment and
rationalization of organisational and
production structures, as well as on
the synergies with Draka, recently
revised up to
€
175 million.
Prysmian is also expecting to see
results from commercial initiatives
to leverage the product portfolio
and improve customer service.
Earlier this year, Prysmian Group
in fact announced the launch of
new commercial initiatives and
actions with the purpose of further
strengthening its presence in certain
high-tech and high value-added
business segments. The announced
initiatives and actions are mainly
focused on leveraging the extensive
range of available products and
are expected to drive a significant
contribution from additional sales
by 2015.
H1 2013
H2 2013E
