Market Overview

General Cable Reports Second Quarter 2017 Results

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General Cable Corporation (NYSE:BGC) reported today results for
the second quarter ended June 30, 2017. For the quarter, reported loss
per share and reported operating loss were $1.42 and $23 million,
respectively. The Company generated adjusted earnings per share and
adjusted operating income of $0.11 and $32 million, respectively, for
the quarter. See page 2 of this press release for the reconciliation of
reported to adjusted results and related disclosures.

Michael T. McDonnell, President and Chief Executive Officer, said, "We
are pleased with our continued strong execution. During the second
quarter, we drove our strategic initiatives toward completion in North
America and generated continued performance improvement in Latin
America. As a result, we were within our guidance range for adjusted
operating income as the positive impact of these items partially offset
unfavorable industry dynamics experienced during the quarter. While we
expect these dynamics to continue, we anticipate our performance over
the second half of 2017 to be consistent with the first half of the year
and up more than 30% as compared to the second half of 2016. We
anticipate the momentum from our restructuring initiatives in North
America and Latin America and project activity in our European land and
subsea turn-key businesses to accelerate through the end of the year.
Our entire team remains focused on operational excellence, outstanding
customer service and execution of our strategic roadmap."

Second Quarter Summary

  • Board of Directors initiated review of strategic alternatives to
    maximize shareholder value, including a potential sale of the Company
  • Reported operating loss of $23 million due to a non-cash charge
    of $36 million related to the sale of the Company's investment in
    Algeria in the second quarter of 2017, compared to a gain of $53
    million on the sale of the Company's North American automotive
    ignition wire business in the second quarter of 2016
  • Adjusted operating income of $32 million declined by $17 million
    period over period as restructuring savings and the continued
    performance improvement in Latin America were more than offset by the
    impact of lower subsea project activity and industry dynamics
    including pricing pressure in certain end markets in North America and
    Europe
  • Maintained significant liquidity with $378 million of
    availability on the Company's $700 million asset-based revolving
    credit facility; completed the amendment of its asset-based revolving
    credit facility extending maturity date to 2022
  • Impact of metal prices was a $2 million benefit compared to a
    negative $3 million impact in the prior year period

Second Quarter Segment Demand

North America – Unit volume was up 7%
versus prior year driven principally by stronger demand for aerial
transmission cables and industrial, construction and specialty (ICS)
products.

Europe – Unit volume was down 7% versus
prior year as stronger demand for electric utility products including
land-based turnkey projects was more than offset by the easing
performance of the subsea turnkey project business and continued weak
demand for industrial and construction projects throughout the region.

Latin America – Unit volume was down 18%
versus prior year driven by the impact of restructuring initiatives and
uneven spending on electric infrastructure and construction projects
throughout the region. The shipment of aerial transmission cables in
Brazil was up 8% year over year.

Net Debt

At the end of the second quarter of 2017 and the end of the fourth
quarter of 2016, total debt was $1,083 million and $939 million,
respectively, and cash and cash equivalents were $97 million and $101
million, respectively. The increase in net debt was principally due to
investment in working capital, partly due to higher metal prices, and
payments totaling $52 million related to our FCPA resolution through the
first half of 2017.

Other Matters

As a result of the Board of Directors' review of strategic alternatives,
the Company has suspended its practice of issuing quarterly guidance and
will not hold an earnings conference call for the second quarter of
2017. The second quarter of 2017 Investor Presentation is available on
the Investor Relations page on our website at www.generalcable.com.

Non-GAAP Financial Measures

Adjusted operating income (defined as operating income before
extraordinary, nonrecurring or unusual charges and other certain items),
adjusted earnings per share (defined as diluted earnings per share
before extraordinary, nonrecurring or unusual charges and other certain
items) and net debt (defined as long-term debt plus current portion of
long-term debt less cash and cash equivalents) are "non-GAAP financial
measures" as defined under the rules of the Securities and Exchange
Commission. Metal-adjusted revenues, and return on metal-adjusted sales
on a segment basis, both of which are non-GAAP financial measures, are
also provided herein. See "Segment Information."

These Company-defined non-GAAP financial measures exclude from reported
results those items that management believes are not indicative of our
ongoing performance and are being provided herein because management
believes they are useful in analyzing the operating performance of the
business and are consistent with how management reviews our operating
results and the underlying business trends. Use of these non-GAAP
measures may be inconsistent with similar measures presented by other
companies and should only be used in conjunction with the Company's
results reported according to GAAP. Historical segment adjusted
operating results are disclosed in the Second Quarter 2017 Investor
Presentation available on the Company's website.

A reconciliation of GAAP operating income (loss) and diluted earnings
(loss) per share to adjusted operating income and earnings per share
follows:

Second Quarter of 2017 versus Second Quarter of 2016    
Second Quarter
2017   2016
In millions, except per share amounts Operating

Income

  EPS

Operating
Income

  EPS
Reported $ (22.8 )   $ (1.42 ) $ 53.3   $ 0.57
Adjustments to reconcile operating Income/EPS
Non-cash convertible debt interest expense (1) - 0.01 - 0.01
Mark to market (gain) loss on derivative instruments (2) - 0.08 - (0.05 )
Restructuring and divestiture costs (3) 12.2 0.21 16.7 0.25
Legal and investigative costs (4) 0.3 - 1.1 0.02
(Gain) loss on sale of assets (5) - - (46.5 ) (0.86 )
Foreign Corrupt Practices Act (FCPA) (6) - 0.20 5.0 0.09
Asia Pacific and Africa (income)/loss (7)   42.5       1.03     19.4       0.27  
Total adjustments   55.0       1.53     (4.3 )     (0.27 )
Adjusted $ 32.2     $ 0.11   $ 49.0     $ 0.30  
 

NOTE: The tables above reflect EPS adjustments based on the
Company's full year effective tax rate for 2017 of 40% and 2016 of
50%.

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