Prysmian, the global group specialising in cables and systems for energy and telecoms, saw an increase in sales in the first quarter of 2008, totalling â‚¬1,216 million. Metals prices and exchange rate translation effects aside, organic growth was 3.4%.
The energy cables division grew by 11.3%, due to a sharp volume increases in the submarine cables segment. Prysmian is working on projects such as SA.PE.I. in Italy, GCCIA in Bahrain, Transbay in the US and Cometa in Spain, as well as in the high voltage segment, especially in China, Russia and the Middle East.
In the telecom business, positive sales performance was achieved by optical cables particularly in Europe. Sales to third parties in the Telecom Cables and Systems business totalled â‚¬142 million, posting an organic growth of 2.3%, driven by strong increase in the optical cables business. Adjusted EBIT totalled â‚¬13 million, unchanged compared to the corresponding period of 2007, despite the negative effect of the devaluation of the US dollar and the British pound. The margin on sales rose to 9.6% from 8.3%.
Strong demand in the high voltage and submarine cables segments is expected to continue due to the growing energy consumption combined with high oil price and the need to make transmission networks increasingly efficient and eco-sustainable.
The order book covers production capacity up to the end of 2009-beginning of 2010 for submarine cables, while in high voltage cables the 2009 production capacity is already 50% booked.