Second-Quarter & Half-Year 2015 Results
SECOND-QUARTER & HALF-YEAR 2015 RESULTS (unaudited)
SOLID GROWTH IN REPORTED SALES
SEQUENTIAL IMPROVEMENT IN ADJUSTED EBITA MARGIN IN Q2,
DESPITE SLOWDOWN IN ORGANIC SALES
FULL-YEAR 2015 TARGETS CONFIRMED AT LOW END OF GUIDANCE
→ SOLID GROWTH IN REPORTED SALES
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+8.4% in Q2 after +7.2% in Q1; +7.8% in H1, boosted by strong positive currency effect
→ SLOWDOWN IN ORGANIC SALES IN Q2
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Constant and same-day sales: -1.6% in Q2 after -0.4% in Q1; -1.0% in H1
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Slowdown mainly due to North America, impacted by the strong drop in the Oil & Gas segment (-32% year-on-year in Q2)
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Sequential improvement in Europe and Asia-Pacific
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→ SEQUENTIAL IMPROVEMENT IN ADJUSTED EBITA MARGIN IN Q2, AT 4.4% OF SALES
-
Despite slowdown in sales in North America and lower gross margin on cable sales in Europe
→ FULL-YEAR 2015 TARGETS CONFIRMED AT LOW END OF GUIDANCE
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Key figures
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Q2 2015
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YoY
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H1 2015
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YoY
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Sales
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€3,423.5m
|
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€6,645.2m
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|
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On a reported basis
|
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+8.4%
|
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+7.8%
|
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On a constant and same-day basis
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-1.6%
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-1.0%
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Adjusted EBITA
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€149.7m
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-18.4%
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€280.6m
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-14.9%
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As a percentage of sales
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4.4%
|
|
4.2%
|
|
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Change in bps as a % of sales
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-90bps
|
|
-70bps
|
|
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Reported EBITA
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€149.0m
|
-8.8%
|
€275.4m
|
-7.3%
|
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Operating income
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€102.6m
|
-29.0%
|
€207.6m
|
-18.9%
|
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Net income from continuing op.
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€20.0m
|
-70.4%
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€43.2m
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-61.4%
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Recurring net income
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€81.0m
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-6.2%
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€133.4m
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-8.0%
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FCF before interest & tax from continuing op.
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€144.2m
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€49.7m
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€2.4m
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€(13.7)m
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|
Net debt at end of period
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€2,556.5m
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+6.2%
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€2,556.5m
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+6.2%
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1 See definition in the Glossary section of this document; as from this announcement, Latin American operations are presented as “Discontinued operations” and related assets/liabilities as “Assets/Liabilities held for sale”
Rudy PROVOOST, Chairman of the Management Board and CEO, said:
“In the second quarter, our profitability improved sequentially, despite a slowdown in organic sales, which was strongly impacted by a drop in demand of more than 30% in the Oil & Gas segment, representing around 10% of our total sales in North America. We are planning a year-on-year gain in profitability in the second half thanks to further actions on gross margin and enhanced cost efficiency, mainly in North America. This expected improvement allows us to confirm our full-year sales and margin targets at the low-end of our February guidance, while maintaining our cash-flow generation objective. Since the beginning of the year, we have also taken significant steps to further reduce our cost of financing.”