Prysmian, based on Italy, and the world’s largest cable maker, posted on Thursday a 20% drop in its 9-month earnings, however, confirmed a full-year regulation for its consolidated profit.
Italy’s Prysmian said economic conditions continuously became difficult as other Latin American nations experienced a slowdown, and the European recovery continued to stumble. Simultaneously, the tensions within the Middle East were damaging the business, making it hard to finish some orders.
The company stated that in order to recover from such struggles, it has planned on closing two European plants towards the year-end, adding 3 more ending activities in 2015.
Valerio Battista, company CEO said many plants are no longer efficient through a fixed-cost perspective. Battista also stated that Prysmian will move towards a structure of the regional supply chain so as to better compete with rivals that are operating in low-cost nations.
In 2011, the company became an industry leader, taking the lead over Draka, which operates 91 plants in 50 nations currently.
In August, the company also cut its 2014 core earnings estimate, fearing investors that another reduction may be declared on Thursday.
Adjusted earnings before EBITDA for January to September dropped to 355 million euros, marginally in proportion to analysts’ estimates of 352 million euros. Meanwhile, sales were flat at 5.014B euros during the first 9 months, and expected to increase nearly 2% of the entire 2014.