MILAN, Aug 1 (Reuters) - Italy’s Prysmian, the world’s largest cable maker, on Thursday reported an 8.3 percent drop in first-half core earnings, as the ongoing economic crisis took its toll on the construction sector.
The group, which manufactures cables used in the energy and telecoms industries, said adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months ended June fell to 282 million euros ($374 million).
This compares with a consensus estimate of 280 million provided by the company.
Sales fell 5.3 percent to 3.622 billion euros.
“Despite the beginnings of a stabilisation phase, (the market) remains difficult, especially because of the construction industry crisis in Europe and uncertainties over broadband stimulus programmes in North and South America,” CEO Valerio Battista said in a statement.
“Profitability is expected to improve in the second half, particularly thanks to high voltage underground and submarine cables for Power Transmission.”
Prysmian, with operates in 50 countries at 91 plants, confirmed its guidance for the full year, saying it expected to report an adjusted EBITDA of between 600-650 million euros.
$1 = 0.7531 euros Reporting by Agnieszka Flak, editing by Danilo Masoni