General Cable ends quarter with $533 million net debt in preliminary results

By Lisa Kerner

Charlotte, N.C., Nov. 5 - General Cable Corp. held its earnings call on Tuesday to announce its preliminary selected estimated results for the third quarter ended Sept. 27.

The results are considered preliminary due to the additional time needed to finalize the company's restated financial statements for several prior periods, a process General Cable targets for completion by year end, according to chief financial officer Brian Robinson.

"The company continues to maintain adequate liquidity to fund operations, internal growth and continuing product and geographic expansion opportunities, as well as its stock repurchase program and quarterly dividend and redemption of its $355 million of convertible notes due this month," Robinson said on the call.

At Sept. 27, General Cable had debt of about $1.53 billion and cash of $533 million.

Net debt was about $995 million, a decrease of about $91 million from the end of the second quarter.

"The decrease in net debt is principally due to reductions in working capital as the result of normal seasonal trends," Robinson said.

According to the earnings presentation, General Cable intends to use a portion of the proceeds of its 2012 issuance of $600 million senior notes to repay the $355 million of convertible notes this month.

For the third quarter, estimated net sales were $1.56 billion, operating income was $56 million, and adjusted earnings per share were $0.32.

Looking ahead, General Cable expects its fourth-quarter revenues to be in the range of $1.55 billion to $1.6 billion on flat to slightly lower global unit volume sequentially.

Operating income is expected to be in the range of $50 million to $60 million, with adjusted earnings per share in the range of $0.25 to $0.35 per share.

General Cable is a Highland Heights, Ky.-based developer, designer, manufacturer, marketer and distributor of copper, aluminum, and fiber optic wire and cable products.

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