QUARTERLY OVERVIEW
4
Prysmian Group Insight
Ongoing recovery in volumes, transmission
order book reaches record €3 bn
The results of the first half of 2014
of Prysmian approved by the Board
of Directors included the financial
impact of the problems encountered
in the execution of the Western Link
project and the effects of exchange
rate trends. Excluding these two
major factors, the recovery in
volumes continued along with a
slight improvement in profitability
since the start of the year, albeit less
visible than in the first quarter. With
regard to the Western Link project,
CEO Valerio Battista reported that
the extensive and rigorous testing
performed to ensure the perfect
execution of such an important
project has been successfully
completed on the submarine
cables and now allows to have a
realistic view of the overall impact
on the project profitability. The
power transmission business has
continued to grow and, thanks to
intensive tendering and continuous
customer confidence, the Group’s
order book has reached a record
€
3 billion. Group Sales amounted
to
€
3,287 million compared with
€
3,504 million in the first half of
2013, posting organic growth of
+1.3%, assuming the same group
perimeter and excluding metal price
and exchange rate effects. Without
the negative impact of the Western
Link project, organic growth would
have been +3.4%, confirming the
slight uptrend in volumes already
seen in the first quarter after several
quarters of organic decline. Adjusted
EBITDA amounted to
€
204 million
(
€
282 million in the first half of
2013). Excluding the adverse impact
of the Western Link contract of
€
74
million in the first half of 2014,
as well as
€
14 million in negative
exchange rate effects, Adjusted
EBITDA would have been
€
292
million (+3.5% on the first half of
2013). With the aim of preserving
its levels of profitability, the Group
has continued to pursue the policy
of containing costs and rationalising
its manufacturing footprint.
Adjusted EBIT amounted to
€
133
million, or
€
207 million excluding
WL effect (
€
208 million in the first
half of 2013). Net financial charges
reported a negative balance of
€
74
million, down from
€
82 million in
the first half of 2013, thanks to the
improvement in financial structure
and in the cost of Group debt.
Adjusted net profit amounted to
€
59 million. Excluding the negative
impact of the Western Link project,
adjusted net profit would have been
€
111 million, slightly down from
€
115 million in the first half of 2013.
have
been impacted by a
€
74
million negative impact on
the Adj. EBITDA related to
Western Link project execution
problems. Sales posted a 1.3%
organic growth on H1 2013,
and 3.4% excluding Western
Link. Adjusted net profit came
in at
€
59 million or
€
111
million excluding Western Link
impact. Profitability improved
slightly excluding Western Link
and exchange rates.
H1 2014: Sales €3,287 million, Adj. EBITDA €204 million
(€278 million excluding WL)
H1 profitability slightly above previous year excl. Forex and WL
Adj. EBITDA evolution (Euro million)
Utilities
Telecom
H1’13
H1’13
H1’13
H1’13
H1’13
H1’14
H1’14
H1’14
H1’14
H1’14
T&I
Total
Western Link
FX
Industrial
124
41
63 63
58
34
43
50
282
140
38
46
292
204
64
74
74
2
3
4
5
Total includes Other Energy
Business (€4 million in H1 2013,
€5 million in H1 2014)
14
