Prysmian slips to the bottom of the Ftse Mib, on an already very difficult day for the Milanese stock market, down by more than 1% on Italian and international uncertainties.
However, the group led by Valerio Battista did worse than the other Blue Chips, losing 14%% at around 8,2 pm at €21,30. Last week the shares lost 6%, while since the beginning of the year the balance by -7,3%.
To cause today's thud is the revision of the estimates on the adjusted EBITDA for 2018 which now also includes General Cable and its subsidiaries. In detail, for the current year, the Milanese company estimates a gross operating margin of 860-910 million from the previous 910-970 million. The reduction in estimates comes, among other things, on the eve of the 500 million capital increase in view of the merger with the Kentucky company.
The decrease in the guidance comes following the decision to set aside 50 million euros to deal with the additional costs arising from the "Westernlink Contract". Problems relating to the functionality of the submarine connection cable between Scotland and Wales, called WesternLink, would in fact require an additional expenditure of 50 million. It should be taken into consideration that, when approving the first quarter results, Prysmian had already set aside 20 million euros, a figure already included in the previous guidance.
Returning to the new Ebitda estimates, of the 860-910 expected, 680-720 (from 730-770 million) refer to the Prysmian perimeter alone, while 175-190 concern General Cable, with cost synergies estimated at 5-10 million. Considering that the General Cable perimeter will only be incorporated for seven months, Prysmian's 2018 consolidated adjusted EBITDA is now expected to be between €787 and €841 million.
(Last update at 14.16)
