PARIS -- Nexans' Board of Directors met on 12 February 2002 under the chairmanship of Gérard Hauser to review the Group's preliminary results for the 2001 financial year.- Sales were stable at 4,777 million euros. At constant non-ferrous metals prices, sales come to 4,467 million euros vs. 4,361 million in 2000, for a 2.4% increase (or 0.4% on a basis of comparable group structure).
- Operating profit in 2001 was 139 million euros, down 18% from 169 million euros the year before. Net income stood at 30 million euros, vs. 75 million euros reported on 31 December 2000.
- Operational cash flow amounted to 210 million euros, close to the 225 million euros reported at year-end 2000.
- The company recorded a net debt of 71 million euros on 31 December 2001.Gérard Hauser, Chairman and CEO, made the following comments concerning these results:"Full Year 2001 was a difficult year marked by an abrupt deterioration in our markets during the second half. In this context, Nexans demonstrated its resilience as well as its ability to react quickly to these events."The company maintained its sales despite a fourth-quarter slowdown in orders in the telecom and winding wires activities. Owing to vigorous efforts to reduce stocks and lower fixed costs, Nexans maintained its operating cash flow and sharply reduced its debt from the 247 million recorded on 30 June to a level below that of 31 December 2000 (76 million euros)."In an economy that will continue to be very difficult in 2002, we must expand our restructuring efforts worldwide in order to regain profitability in selected areas. These new programmes, which are currently under study, will probably result in 80 million euros of cash expenditures over the years 2002 and 2003 (i.e. 30 million euros more than the restructuring initially foreseen for such period), to which should be added asset write downs of 40 million euros."These strong actions, coupled with ongoing efforts to generate cash and reduce costs, and Nexans' solid fundamentals and sound Balance Sheet, should enable Nexans to reach in 2004 its objectives of a 5% operating margin and a return on capital employed of 16 to 20%."Against this backdrop, the Board of Directors has decided to retire the 1,990,031 shares of treasury stock resulting from the share buyback programme launched in October 2001, by means of a corresponding reduction in share capital.The Board of Directors was in favour of the management proposal in principle to declare a dividend of 10 million euros, being 0,43 euro per share. The dividend proposal, to be submitted to the shareholders meeting for approval, will be made by the Board at its next meeting on April 19, 2002.Nexans