REFILE-UPDATE 1-Prysmian sticks to forecast despite rival Nexans' warning
(Re-files with modified headline)
* 2013 EBITDA guidance 600-650 mln euros
* Group has to absorb negative forex impact
* CEO says always looking round for M&A opportunities
MILAN, Oct 24 (Reuters) - Italy's Prysmian, the world's biggest maker of power and telecommunications cables, said on Thursday it was sticking to its full-year profit forecast, despite French rival Nexans cutting its own targets earlier this month.
"I can confirm to you the guidance we gave to the market with first-half results," Prysmian's chief executive Valerio Battista said on the sidelines of a conference.
Prysmian is aiming for adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of between 600 million and 650 million euros ($896 million) in 2013.
On Oct. 15 Nexans cut its own full-year EBITDA forecast range to 285-305 million euros after sales fell 2.9 percent in the first nine months of the year.
A lack of growth, overcapacity and fierce competition in the European market were some of the reasons Nexans gave for the revision, which accompanied an announcement on job cuts and a capital raising.
However, Battista did say the strong euro would have a negative effect on Prysmian's results of between 15 and 20 million euros, noting its full-year EBITDA would likely be towards the middle of the target range given.
"We had hoped to be better off but with the forex variant that won't be possible," he said.
Analysts have said reduced spending by utilities and telecom groups is impacting margins in the cable industry.
Prysmian overtook Nexans to become world leader in 2011 when it bought rival Draka for 1.3 billion euros - a move that raised the group's exposure to emerging markets in China, the Middle east, Brazil and India.
Asked if the company was interested in buying other rivals in a fragmented industry, Battista said he was always on the look out.
"There are always dossiers on table," he said. ($1=0.7256 euros) (Editing by Greg Mahlich)
- Alabama man gets $1,000 in police settlement, his lawyers get $459,000
- Two dead, including gunman, in shooting at Washington high school: police
- U.S. officials considering quarantines for returning healthcare workers |
- New York police officer critically wounded in hatchet attack |
- Putin accuses United States of damaging world order