Annual Shareholders’ Meeting of May 15, 2006
Nexans’ outlook for the first half of 2006
Paris, May 15, 2006 - The Annual Shareholders' Meeting of Nexans, presided by Gérard Hauser, Chairman and CEO, will take place today, May 15, 2006, at 3.30pm, in Paris.
During this Annual Shareholders' Meeting, the Group will confirm its outlook for the first half of 2006:
- At June 30, 2006, Nexans’ organic sales growth is expected to be 8 to 10% at constant non-ferrous metal prices and exchange rates, which is better than the organic growth of Nexans of over 7% recently announced for the first quarter of this year.
- The operating margin should reach 4.3% to 4.5% (compared to 3.6% at June 2005).
- This significant growth of volumes and margins occurs in an unusual and speculative context characterized by a sharp rise in the price of copper which has increased by 90% since 1 January 2006, and by 21% since Nexans’ press release published on April 26, 2006. This increase in the price of copper, which is passed on to customers, is not due to any shortage of copper and does not affect customer demand. Its financial effects on the Group are however two-fold: firstly a positive variation in the fair value of non-ferrous metal derivatives (IAS 39) which are marked to market resulting in a positive but temporary non-cash effect in an amount of 85 million euros and secondly the increase of financial debt.
- In this context, net income should show a substantial increase reflecting, beyond the capital gain on the disposal of the distribution business in Switzerland (150 million euros) and a limited restructuring charge of 25 million euros, the temporary but reversible effect of the application of IAS standard 39 referred to above.
- The anticipated increase in debt as of 30 June will be limited by tightening control of working capital requirements as well as by the expected conversion of the convertible bonds (OCEANE) issued in July 2004, and should be close to 540 million euros.
- May 19, 2006: payment of dividend
- July 25, 2006: publication of first half 2006 sales and results
- October 3, 2006*: information meeting for individual shareholders in Versailles
- October 24, 2006*: information meeting for individual shareholders in Tours
- November 13, 2006*: information meeting for individual shareholders in Lyon
- December 7, 2006*: information meeting for individual shareholders in Montpellier
* provisional dates
I Vostri Contatti
Nexans in breve
Nexans e' leader nell'industria dei cavi. Il Gruppo propone una vasta gamma di soluzioni avanzate inerenti cavi in rame o in fibra ottica per il mercato dell'industria, delle costruzioni civili e per le infrastrutture. I cavi e i sistemi Nexans sono in ogni luogo, in reti di telecomunicazione e di energia, nel settore sanitario, automobilistico, ferroviario, edile, aeronautico, etc. Nexans, con la sua presenza industriale in 29 paesi e con le sue attivita' commerciali, impiega oltre 20.000 persone, con una cifra d'affari di 5,4 miliardi d'euro nel 2005. Nexans e' quotata alla Borsa di Parigi.