The macro environment of 2015
remained robust in the US,
and gradually stabilised across
the Eurozone. In contrast,
persistent geopolitical tensions
in the Middle East and Russia,
alongside the slowdown of the
economies of China and Brazil,
continued to raise doubts over
these nations’ contribution
to world economic growth.
In such an economy, the Group predicts that in 2016, demand in the cyclical business of medium voltage cables for utilities and building wires will witness slight recovery and price stabilisation. Regarding our Energy Projects division, the Group confirms an improving trend, with growth of Submarine, general stability of High Voltage Underground, and only a slight contraction of SURF divisions.
The plan we initiated in response to the problems of the Western Link Project is proceeding as expected.
In the Oil & Gas division, reduction in oil industry investments is likely to continue to have a negative impact. Telecom is expected to see continued growth in optical demand, albeit at a slower pace than that of 2015.
Exchange rates are forecast to have a negative impact on FY 2016 results – assuming constancy of the levels seen at the start of the year – due to the conversion of profits from other currencies into The Group’s reporting currency.
Prysmian Group will continue throughout 2016 to rationalise its activities with the objective of not only achieving its projected cost efficiencies, but also improving competitiveness in all areas.