PARIS (Thomson Financial) - Nexans said it is still expecting a higher full
year operating margin after net profit remained flat at 119 million euros in the
first half as sales fell slightly because of a deliberate reduction in the
electrical wires business.
Sales dropped to 3.554 billion euros in the six months to June from 3.792
billion a year ago but the company achieved 7.2 percent organic sales growth in
its main cable business.
The operating margin improved to 9.1 percent at constant non-ferrous metal
prices from 7.6 percent in the prior year.
Net profit was held back by a smaller gain from revaluation of its exposure
to copper and to an increase in the effective rate of tax, Nexans said.
Its full year sales guidance is for organic growth of more than 6 percent.
Nexans said it has abandoned the possible sale of its automotive cable
harness activities because valuations were not in line with the business's
potential.
Taking this into account, the group's net financial debt at year-end should
be between 500 and 600 million euros, the company said.
Andrew Newby; Andrew.Newby@thomsonreuters.com
an/sal
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