Nexans : actualization of the outlook for the first semester 2004
Paris, July 6, 2004 - Nexans takes the opportunity of the capital market transaction announced today to confirm its outlook for the first semester as announced at the Annual Shareholders' Meeting held on June 3, 2004. On June 30, 2004, on a comparable consolidation scope and at constant exchange rates, sales should increase by 4% to 5 % and the operating margin should be approximately 2.6 % compared to 1.9 % calculated using comparable accounting methods for first semester 2003. Following the steep increase in copper prices, group debt should be between 205 million to 245 million euros at June 30, 2004 (after sales of receivables on a non-recourse basis for an amount of 128 million euros), as compared to 142 million euros at June 30, 2003 (after sales of receivables on a non-recourse basis in an amount of 108 million euros). Cash generation (excluding acquisitions) for the full year will be a function of whether copper prices return close to levels close to those experienced during the last quarter of 2003. Nexans will announce its full half year figures on July 21, 2004.
Further to its policy of external growth through targeted acquisitions and in addition to the Korean tender offers that have already been announced, Nexans is currently finalizing negotiations on two transactions, which, if closed as expected this summer, would increase Group debt by between 60 million and 70 million euros.