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Stock Market & Financial Investment News

News Breaks
April 17, 2014
08:21 EDTBGCGeneral Cable remeasures Venezuelan unit's exchange rate
General Cable announced that based on recent changes to the Venezuelan currency exchange system, the company is changing the exchange rate used to remeasure its Venezuelan subsidiary’s financial statements. The company has decided to use the exchange rate determined by periodic auctions for U.S. dollars conducted under Venezuela’s Complementary System of Foreign Currency Administration. As of Q1, the SICAD I exchange rate used by the company was 10.8 bolivars to the U.S. dollar as compared with the official exchange rate of 6.3 bolivars to the U.S. dollar used previously. As a result of remeasuring the balance sheet of its Venezuelan subsidiary on March 28, at the SICAD I exchange rate of 10.8 bolivars to one U.S. dollar, the company expects to record a charge in the range of $80M-$85M in Q1 results. Due to the changes in the currency exchange system, restrictive pricing controls, ongoing labor negotiations and lingering social unrest, management estimates pre-tax income for 2014 from Venezuela to be in the range of $0-$20M, which is down from its previous communicated expectation of $30M. As a result of the above, the company has initiated an impairment analysis of goodwill and indefinite-lived intangible assets attributable to the company’s Phelps Dodge International business unit, which includes the operating results of Venezuela. While the amount of the non-cash impairment charge has yet to be determined, the goodwill and indefinite-lived intangible assets attributable to the PDIC business unit were approximately $155M and $124M, respectively, as of March 28. The company anticipates the amount of the impairment charge may be a material portion or all of the goodwill and/or indefinite-lived intangible assets attributable to the PDIC business unit.
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July 10, 2014
10:53 EDTBGCGeneral Cable slides after cutting jobs, FY14 income guidance
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06:44 EDTBGCGeneral Cable to host conference call
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July 9, 2014
16:22 EDTBGCGeneral Cable sees Q2 adjusted operating income within prior guidance
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16:21 EDTBGCGeneral Cable lowers FY14 adjusted operating income view to $200M-$230M
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16:18 EDTBGCGeneral Cable announces restructuring, to cut about 7% of workforce
General Cable announced it is implementing a restructuring program designed to improve profitability and return on invested capital in each of its three reportable segments. The restructuring program, which builds on the company’s existing productivity and asset optimization plans, is expected to result in ongoing annual savings of approximately $75M, beginning in 2014 with full realization starting in early 2016. The restructuring program is focused on the closure of certain underperforming assets as well as the consolidation and realignment of other facilities. The company is also implementing reductions in selling, general and administrative expenses globally. As a result of the restructuring, the company expects to record pre-tax charges of approximately $200M, which includes approximately $80M of cash costs. The company anticipates a majority of the total charges will be incurred in 2014. These actions are anticipated to result in the elimination of approximately 1,000 positions globally, representing nearly 7% of the company’s workforce. Progress on the restructuring will be communicated periodically throughout the implementation of the program which is expected to be completed over the next 12 months, the company said.
16:16 EDTBGCGeneral Cable announces restructuring, revises 2014 income view

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