Nexans’ sales trend in the third quarter of 2023 reflects recent challenges. Despite a significant drop in sales in the first nine months of the year, the Group is maintaining its financial forecasts for 2023. This decision is based on optimism about the growing electrification of the economy.
Sales down, but encouraging outlook
Over the first nine months of the year, Nexans recorded a -6.8% drop in its “ordinary metals” sales, to 5.9 billion euros. However, it is essential to note that these figures take into account variations in non-ferrous metal prices. At constant metal prices, “standard” sales fell by 2.4% to 4.9 billion euros.
In the face of geopolitical and economic uncertainty, Nexans is maintaining its financial forecasts for the full year 2023. The Group is targeting EBITDA of between €610 and €650 million. This decision was reiterated by Nexans CEO Christopher Guérin in a recent press release. These forecasts had been raised to the first half of 2023.
Reasons for sales decline
The reduction in Nexans’ sales is due in part to the phasing out of the umbilical cables business, mainly used in the oil and gas sector. In addition, the delay in ramping up the Charleston plant in the United States, which is the only submarine high-voltage manufacturing plant in the country, also had a negative impact.
However, encouraging news emerged in the third quarter. The Charleston plant is now operational, and the power generation and transmission business has seen a significant rebound.
Sharp rise in orders for subsea power cable installations
In this activity, Nexans has announced an adjusted order book of 5.2 billion euros at the end of September 2023, representing an increase of 115% on the same period last year. To cope with this increase in orders, Nexans has taken the strategic decision to invest in a new ultra-modern, technologically advanced cable-laying vessel, which will be operational in 2026.
These developments testify to Nexans’ ability to adapt to market challenges and seize new growth opportunities, despite previous obstacles.
