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UPDATE 1 -Prysmian's 2013 net profit falls on currency woes
February 25, 2014 / 7:05 PM / in 4 years

UPDATE 1 -Prysmian's 2013 net profit falls on currency woes

(Adds estimate on 2014 sales, analyst comment)

MILAN, Feb 25 (Reuters) - Italy’s Prysmian, the world’s largest cable maker by revenue, said on Tuesday it expects currency effects to hit earnings again this year after they contributed to a 4.3 percent drop in net profit in 2013.

Shares in the company, which makes cables for the power and telecoms industries, fell more than 5 percent to a two-week low and closed down 3.4 percent at 18.41 euros.

“We have to keep in mind the company will be hit by a negative impact from exchange rates and commodity prices also in 2014,” a Milan-based analyst said.

The company said full-year adjusted 2013 net profit fell to 268 million euros ($368 million), compared with the year before, above an analyst consensus of 246 million euros provided by the company.

Adjusted earnings before interest, tax, depreciation and amortization, or EBITDA, fell 5.5 percent to 612 million euros, in line with the analyst consensus. The negative currency effects on adjusted EBITDA was 23 millions euros, Prysmian said.

The Milan-based analyst said he expected Prysmian to report an adjusted EBITDA for this year at around 630 million euros, below an analyst consensus of 650 million euros.

While the company is expected to give guidance on core earnings when it publishes first-quarter results, Chief Executive Valerio Battista said in a conference call it was “reasonable” to expect a 3 percent organic growth in sales this year.

This would be a reverse of last year’s trend when sales fell 3.1 percent to 7.3 billion euros.

Prysmian said it would pay a dividend of 0.42 euros per share for 2013, the same as the year before.

$1 = 0.7282 euros Reporting by Francesca Landini and Massimo Gaia; Editing by Pravin Char

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