HIGHLAND HEIGHTS, Ky., Jan. 9, 2002 — General Cable New Zealand has acquired the shares of Brand-Rex Pty. Limited, a supplier of data communications cables in Australia, from United Kingdom based Novar Plc.
The purchase substantially expands General Cable’s reach into the communications market in Oceania, complementing its existing business in the region.
Commenting on the data cable acquisition, Gregory B. Kenny, President and CEO of General Cable Corporation said, “We expect the acquisition to add $10-15 million in new revenues, solidify our position in Australia, and nicely leverage data communications cable manufacturing equipment acquired from Southwire. This equipment was received as partial consideration for the sale of our building wire assets.”
Kenny added, “The Company will continue to look for `bolt on’ acquisitions that create value immediately by leveraging General Cable’s investment in operating systems and its `one company’ approach to the market.”
In light of the economic slowdown and as the industry consolidates globally, Kenny expects to continue to see opportunities to acquire under-performing assets at compelling valuations.
Separately, General Cable said that based upon improving energy cable demand and cost reductions enabled by the strategic restructuring completed in the fourth quarter of 2001, it was comfortable that it would meet the consensus earnings estimate for the fourth quarter of $0.10 per fully diluted share. Metals adjusted revenues for the quarter were approximately 10% below the prior year for ongoing businesses.
Commenting on the first quarter of 2002, Kenny was optimistic that the benefits of the company’s restructuring would produce a sequential improvement in EPS despite a continuation of fourth quarter demand patterns.
General Cable is involved in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic wire and cable products for the communications, energy and industrial markets.
For more information, visit the company’s web site at http://www.generalcable.com.