General Cable Slips To Loss In Q2; Guides Q3

(RTTNews) - General Cable Corp. (BGC) reported a net loss for the second quarter of $24.8 million or $0.51 per share, compared to a profit of $8.2 million or $0.16 per share for the year-ago quarter. For the quarter, excluding certain items, the company recorded adjusted income per share of $0.29.

Adjusted operating income was $57 million, while reported operating income was $14 million for the quarter.

Net sales for the quarter fell to $1.53 billion from $1.66 billion a year ago.

Analysts polled by Thomson Reuters expected the company to report a profit of $0.28 per share on revenue of $1.60 billion for the quarter. Analysts' estimates typically exclude special items.

The company stated that immediate action taken under restructuring program with the announced closure of the India and Peru greenfield locations in Rest of World as well as the closure of one manufacturing facility in North America. The closure of these three facilities is expected to generate around $12 million in annual savings and result in one-time pre-tax charges in the range of $50 million including approximately $12 million of cash.

Looking ahead to third quarter, the company expects revenues to be in the range of $1.5 billion to $1.55 billion as volume is anticipated to increase in the low single digit range sequentially. The company anticipates adjusted operating income to be in the range of $60 to $75 million . Adjusted earnings per share are expected to be in the range of $0.35 to $0.55 per share. Analysts currently expect the company to earn $0.51 per share on revenue of $1.57 billion for the third quarter.

For 2014, the company reconfirms its outlook for adjusted operating income for 2014 in the range of $200 million to $230 million, which excludes the impact of Venezuela. Management expects the business in Venezuela to generate $0 to $10 million in pre-tax income for the full year.