PRESS RELEASE
2018 FIRST QUARTER FINANCIAL INFORMATION
ð· Organic sales decrease of -4.6%1 in first quarter 2018 versus first quarter
2017, breaking down as:
o A 2.2% increase for cables excluding Oil & Gas sector activities o A 30.0% decrease for High Voltage project activities excluding umbilicals o A 35.5% decrease for Oil & Gas sector activities
ð· Sharp contraction in sales for High Voltage project activities, with half of the decrease due to the impact of applying IFRS 15 and the remaining half resulting from less favorable project planning
ð· Slight sales growth for cable activities reflecting a slow start to the year,
with business picking up from March, mainly in Europe
ð· A strengthening order book for cable activities, suggesting a gradual upturn during the year
Paris La Défense, May 3, 2018 Today, Nexans announced that its sales for the first quarter of 2018 amounted to 1,538 million euros (versus 1,570 million euros for first-quarter 2017). At constant metal prices2, first quarter sales came in at 1,028 million euros, representing a year-on-year organic decrease of 4.6% after a foreign exchange effect of -60 million euros.The Group's various businesses evolution breaks down as follows:
ð· After a record performance in 2017, which saw a 23.8% sales hike in the first quarter of the year, High Voltage project activities reported a 30.5% year-onyear sales decline for the first three months of 2018. The main reasons for this contraction are (i) the fact that revenue is now recognized at a later stage of project completion (following the first-time application of IFRS 15) and (ii) the timing of the different projects in execution provides a less favorable planning than in 2017.
The situation is expected to reverse in the second half however, when the
Group anticipates a better mix of projects and schedules. Meanwhile, output from the Group's submarine high voltage cable plants remained high in first quarter 2018, following on from the strong levels seen in 2017.
ð· Sales of industrial cables edged up 0.6%, with a 2.4% increase for automotive harnesses, a 36.7% decline for Oil & Gas sector cables and a 4.4% rise for other industrial cables.
ð· The Telecom & Data segment reported a 2.3% overall contraction in sales,
reflecting a slight 0.3% increase for LAN cables, a 2.1% dip for telecom infrastructure cables and an 11.8% decrease for submarine specialty cables.
1
The first quarter 2018 sales figure used for like-for-like comparisons corresponds to sales at constant non-ferrous metal prices adjusted for the effects of exchange rates and changes in the scope of consolidation. Exchange rates had a negative 60 million euro impact on sales at constant nonferrous metal prices during the period and there was no impact from changes in the scope of consolidation.
2
To neutralize the effect of fluctuations in non-ferrous metal prices and therefore measure the underlying sales trend, Nexans also calculates its sales using constant prices for copper and aluminum.
Nexans 2018 First Quarter Financial Information - Page 1/6
ð· The Building & Territories segment delivered 0.2% organic growth. Sales of
