General Cable 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Divesting Asian and African assets

“We’re developing a divestiture plan for Asia Pacific and African assets. We will have more to say about that plan and our progress in upcoming calls, where our plan is to exit these operations as expeditiously and orderly as possible, while protecting the substantial underlying value.”

CEO transition

“We announced yesterday that we’ll be moving forward to implement our planned leadership transition. Our board has formed a search committee to identify my successor as CEO. Once a successor is identified, the board has asked me to remain on the board and become Chairman, and I’ve agreed to do so on an open-ended basis as the needs of the company dictate. ”

800m in liquidity offsetting 1.4B in debt

“Collectively, we have approximately $800 million of liquidity in the system to fund operations and support the quarterly dividend, the restructuring program and the anticipated retirement of the $125 million senior floating rate notes due in April 2015. Net debt was $1,359 million at the end of the third quarter of 2014”

Construction and infrastructure spend drive the business

“as construction and infrastructure spend go, so goes General Cable for the most part.”

Flat to up environment in NA

“distributors are — about 40% of our business that’s through distributors are channel partner. As you well know, and I’m seeing some mix as slightly positive. We saw the Anixter results, I think Rexel just announced. It’s sort of a mixed story. But I think consistent with what we’re seeing some positive movement in North America, particularly the U.S. The other big piece of our business, about 35% of global is utilities, and we watch energy demand and their rate cases. And it’s again way off from where we were say, 10 years ago, but we do see transmission is generally stronger, and of course, we have wind, which has been — wasn’t there 10 years ago. So I’m watching a lot of the industrial infrastructure companies like Ford or Foster Wheeler, or others watching the utilities what they’re saying and then finally the distributors, but I think it’s — what we’re seeing is fairly consistent with what you’re reading on a macro.’