5
Prysmian Group Insight
QUARTERLY OVERVIEW
Positive trend for submarine continues
with intense tendering activity
Stabilisation in building wires, decline in renewables offset by O&G
and other industrial sectors
Energy
Sales to third parties amounted
to €4,543 million, compared
with €4,801 million in the first
nine months of 2012, reporting
marginally negative organic
growth (-1.3%) while third
quarter organic growth was
slightly positive (+1.4%).
Adjusted EBITDA came to €353
million, up from €348 million in
the first nine months of 2012.
Utilities
Sales to third parties amounted to
€
1,650 million, recording an organic
change of just -0.8%. The high
profitability of the submarine business
has reflected positively on the overall
Adjusted EBITDA of Utilities, which
increased to
€
192 million from
€
185
million in the first nine months of
2012, thus more than offsetting the
weak performance posted by the
Power Distribution business. In the
High Voltage underground business,
the Group has made up for market
weakness in Europe thanks to its
commercial initiatives in emerging
economies requiring infrastructure
development and by strengthening
its high-end business, with work
on high-tech projects, such as the
underground sections of submarine
links and interconnections. The
order book assures sales visibility for
about one year. Sales performance
and profitability were both excellent
in the Submarine business, thus
confirming the Group‘s leadership in
a strategic and constantly growing
market. The order book assures
sales visibility for about three years,
with the Group constantly engaged
in intense tendering activities The
Power Distribution business line
has shown no signs of recovery in
demand, which remained weak,
particularly in Europe and Australia.
In the Americas, the Group has
implemented selective sales policies
in South America in defence of
earnings, while the upward trend
in volumes has continued in North
America.
Trade & Installer
Sales to third parties amounted
to
€
1,471 million in the first nine
months with signs of stabilisation
and recovery in the third quarter
when, for the first time in many
quarters, organic growth returned to
a positive figure of +1.8%. Adjusted
EBITDA came in at
€
61 million,
broadly in line with
€
62 million in
the corresponding nine months of
2012, with a ratio on sales of 4.1%,
up from 3.7%.
Industrial
Sales to third parties amounted to
€
1,340 million delivering positive
organic growth of 3.0%. The Oil
& Gas sector has confirmed the
positive trend for offshore, with
major projects in the North Sea,
Asia Pacific and South America.
The SURF (Subsea Umbilical Risers
Flowlines) segment has made a
positive contribution thanks to the
execution of Umbilicals projects
in Indonesia and Angola and the
renewed partnership with Petrobras.
Adjusted EBITDA amounted to
€
97
million, compared with
€
101 million
Organic Growth evolution
(% change on previous year period)
Utilities
Telecom
H1’13
H1’13
H1’13
H1’13
H1’13
Q3’13
Q3’13
Q3’13
Q3’13
Q3’13
T&I
Total
Industrial
0.7%
-3.4%
0.6%
-8.5%
1.8%
7.8%
-16.2%
-11.4%
-1.1%
-5.3%
in the first nine months of 2012,
with stable margins on sales.
Telecom
The decline in optical cable
sales continued in North and
South America; there were high
growth rates in China; and the
development of presence in
South East Asia. Profitability is
still declining.
Sales to third parties amounted
to
€
945 million in the first nine
months, down 14.6% organically on
the previous year. Such a decrease
reflects on the one hand the steep
decline in optical cable demand in
North and South America because
of the ending of incentive policies in
the U.S. and Brazil and, on the other
hand, a downturn in Multimedia
Solutions and copper cables
businesses in Europe. Demand is
expected to show signs of recovery
in Europe and South America over
the next few quarters. Optical
cables have nonetheless maintained
high growth rates in China and
Australia, while Multimedia Solutions
continued its expansion in South
America and Asia Pacific. Adjusted
EBITDA came to
€
91 million (
€
120
million one year earlier).
