5
Prysmian Group Insight
QUARTERLY OVERVIEW
Growth resumed across most businesses
Sales showed signs of improvement: the building wires business confirmed the steady
improvement that began in late 2013; organic growth for the Telecom business returned
to positive territory; and industrial cables continued its upward trend. There was a growing
transmission order book but Utilities was affected by Western Link extraordinary event.
Energy
Sales to third parties by the
Energy Cables and Systems
business amounted to
€
1,343
million, with organic growth of
+3.6% on the first quarter of
2013. Excluding the Western
Link impact of
€
37 million,
sales would have been
€
1,380
million, with organic growth
of +6.2%. Adjusted EBITDA
was
€
60 million (
€
97 million
excluding Western Link impact,
up +3.2% on the first quarter
of 2013).
Utilities
Sales amounted to
€
462 million
with an organic increase of 0.1%.
Excluding the Western Link impact,
the organic growth was 7.7%. The
decrease in Adjusted EBITDA to
€
18
million from
€
50 million in 2013
was entirely due to Western Link,
excluding which Adj. EBITDA would
have risen 10% to
€
55 million.
Sales of High Voltage Underground
Cables were positive, benefiting in
particular from good performance
in strategic markets like North
and South America and Northern
Europe. The Submarine business
has been hit by technical problems
in the manufacturing of cables for
the Western Link that the Group
is seeking to overcome. Thanks to
new projects worth a total of more
than
€
300 million, the Group has
strengthened its leadership in the
high value-added submarine cables
market. The Power Distribution
business continued to suffer from
weak demand in Europe and South
America.
Trade & Installer
Volumes showed significant signs
of recovery, with organic growth
of 9.1%. In Europe, demand was
particularly dynamic in countries
such as Germany and the United
Kingdom, and in the non-residential
construction markets of Eastern
and Northern Europe. Demand was
also positive in North America and
in the vast Asian market, with the
exception of Australia, while South
America had a weak start to the
year. Adjusted EBITDA amounted
to
€
13 million, compared with
€
16
million in the first quarter of 2013,
with a slight fall in margins mainly
due to a negative currency effect.
Industrial
Sales amounted to
€
401 million,
delivering organic growth of 2.5%.
Oil & Gas reported an upturn in
onshore demand, particularly
in Europe and the Middle East,
but persistently low volumes for
offshore, although this is expected
to recover significantly in coming
months. The SURF business
(products and services for offshore
oil drilling) and the Specialties &
OEM business had a weak start to
the year, while other sectors, such
as port cranes, infrastructure and
rail transport, enjoyed positive
trends. Renewables showed signs of
recovery, while Elevators delivered
an excellent sales performance.
Adjusted EBITDA remained stable
at
€
27 million, despite a negative
impact of currencies.
Telecom
There was recovery for optical
cables in Europe and positive
signs in North and South
America, but profitability was
affected by price reductions
over recent quarters and
negative exchange rates.
Sales posted a slight organic increase to
€
236 million. Opticals enjoyed
a strong recovery in demand that only partially translated into higher
revenues. Of particular note were the first signs of an upturn in volumes in
North America and the start of a recovery in South America. In Asia, the
Group aims to make the most of its important manufacturing presence in
China and to strengthen market penetration in the South East. The high
value-added connectivity business grew particularly in France, United
Kingdom and the Netherlands. Adjusted EBITDA came in at
€
18 million,
compared with
€
20 million in the first quarter of 2013, negatively affected
by currency effect.
