QUARTERLY OVERVIEW
4
Prysmian Group Insight
Improvement in profitability excluding
Western Link extraordinary event
Prysmian Group’s consolidated
results for the first quarter of 2014
showed the first signs of volumes
recovery with positive organic
growth after several quarters of
contraction. Results have been
adversely affected by technical
problems encountered in the
manufacture of the submarine cable
for the Western HVDC Link project
in the United Kingdom; the Group’s
technicians are working to overcome
these difficulties and resume work.
The negative impact of these issues
has been
€
37 million on the quarter
sales and operating income. Apart
from that, profitability would have
improved slightly, despite still
negative exchange rate effects.
Group Sales amounted to
€
1,579
million, compared with
€
1,669
million in the first quarter of 2013,
posting organic growth of +3.2%.
Excluding Western Link impact sales
would have grown 5.4% organically,
showing the first positive signs of
recovery after several quarters
of organic decline. In particular,
the Trade & Installers business
confirmed the steady improvement
underway since the second half
of 2013. Organic growth for the
Telecom business also returned to
positive territory, while Utilities sales
were heavily affected by Western
Link. Industrial cables continued
their upward trend.
Adjusted EBITDA came to
€
78
million from
€
114 million in the
first quarter of 2013, with the
whole decline due to the already
mentioned Western Link event;
excluding this, Adjusted EBITDA
improved slightly. Adjusted
operating income came to
€
42
million (
€
79 million excluding the
Western Link impact, in line with
€
78 million in the first quarter of
2013). Net finance income and
costs reported a negative balance
of
€
35 million, a significant
improvement from
€
48 million in
the corresponding period in 2013,
also thanks to the improvement in
financial structure and in the cost
of Group debt. Adjusted net profit
amounted to
€
12 million (
€
38
million excluding the Western Link
impact after tax of
€
26 million, in
line with
€
39 million in the first
quarter of 2013). As of 31 March,
the net financial position amounted
to
€
1,133 million, compared with
€
805 million at 31 December 2013
and
€
1,161 million at 31 March
2013, reflecting a negative impact
of
€
334 million from changes in net
working capital mainly due to the
normal seasonality in stock levels in
the first part of the year.
The
included
a
€
37M negative impact
on the Adj. EBITDA due to
Western Link project execution
problems, with profitability
improving slightly if this is
excluded. Sales posted a 3.2%
organic growth on Q1 2013,
and 5.4% excluding Western
Link. Adjusted net profit came
in at
€
12 million, or
€
38
million excluding Western Link,
broadly in line with the
€
39
million recorded in the first
quarter of 2013.
Adj. EBITDA €78 million (€115 excluding WL), sales €1,579 million
Organic Growth evolution
(% change on previous year period)
Utilities
Telecom
H1’13
H1’13
H1’13
H1’13
H1’13
H2’13
H2’13
H2’13
H2’13
H2’13
Q1’14
Q1’14
Q1’14
Q1’14
Q1’14
Q1’14*
Q1’14*
T&I
Total
Industrial
0.7%
0.7%
-3.3%
0.6%
-8.5%
0,2%
7.8%
2.5%
3.2%
9.1%
7.7%
5.4%
-16.2%
-7.8%
-0.9%
-5.3%
0.1%
* Q1’14 Org. growth excluding WL submarine
project effect H1’13 and H2’13 Org. growth according
to previous accounting criteria
