Nexans announced first-quarter 2015 sales of 1,601 million euros at current metal prices (versus 1,560 million euros in the first three months of 2014). At constant metal prices[2], first quarter sales came in at 1,172 million euros, representing year-on-year organic growth of 1.8%.
This overall sales increase reflects contrasting trends:
- Momentum was very brisk in the high-voltage business, with sales up 16% fueled by steady growth for submarine cables and an upturn in performance for land cables.
- Europe reported 3% year-on-year growth, reflecting a strong showing from automotive harnesses which more than offset the decline in cables sales in the region. Against the backdrop of continuing uncertainty in the European market, the Group pursued its measures to streamline its market/product portfolio, focusing on its most profitable products rather than seeking to increase unit sales volume.
- Sales in North America contracted by around 7% as the sharp rise in sales of cables for the building market and LAN cables was unable to offset the overall impact of a steep falloff in the resources sector (Oil & Gas and mining), a slowdown in sales to utilities and a decrease in external sales of wirerods.
- Despite a significant improvement in Peru and Colombia, sales in South America were down 11% year on year due to heightened difficulties in Brazil.
- In the Asia-Pacific area sales edged back 1%, reflecting the combined impact of extremely difficult ongoing market conditions in Australia and solid trends in Korea and China.
- In spite of a continuing tense geopolitical environment, sales in the Middle East, Russia and Africa area climbed 3% year on year, driven by buoyant performance in Turkey.
Commenting on the Group's performance for the first quarter of 2015, Arnaud Poupart-Lafarge, Nexans' Chief Executive Officer, said: "Our sales figures in the first three months of 2015 reflect our strategic decision to focus on the Group's most profitable operations. We are meeting our objectives in all of the main areas of our strategic plan, particularly in terms of reducing fixed costs. And we were awarded the largest contract in the Group's history during the period, with an order representing over 500 million euros for the NordLink project."
