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General Cable opts for review
Posted on Monday, 17 July 2017 10:16
General Cable has kicked off a review of strategic alternatives which could pave the way for a sale of the US electric wire and cable manufacturer currently valued at USD 821.40 million in the markets.
Financial advisor JPMorgan is in charge of the process which comes amid tough challenges within the sector, despite a two-year transformation to grow and optimise the group’s portfolio and expand through restructuring and divestitures.
President Michael McDonnell noted: “While we are benefiting from these significant operational and financial performance improvements, current dynamics in our industry are masking those accomplishments, and we expect that trend to continue through the second half of 2017 and into 2018.”
Incorporated in 1994 in Delaware, General Cable and its predecessors have actually served the wire and cable markets for over 150 years and its immediate precursor was a unit of American Premier Underwriters, previously known as the Penn Central.
Today, the group is a leader in the development, design, manufacture, marketing and distribution of copper, aluminium and fibre optic wire and cable products for the energy, industrial, and communications segments.
It also provides turnkey integration and installation projects for items such as high and extra-high voltage terrestrial and submarine systems and operated 33 manufacturing facilities, as of 31st December 2016.
End markets include electric utility, electrical infrastructure, communications, construction and rod mill products.
General Cable also noted in the statement it expects to report revenue of USD 923.00 million for North America, Europe and Latin America for the quarter ended 30th June 2017 (Q1 2017: USD 918.20 million).
The company also anticipates operating loss and adjusted operating income of USD 23.00 million and USD 32.00 million, respectively.
It added the loss reflects a one-time non-cash charge of about USD 36.00 million related to the sale of its investment in Algeria.
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