General Cable (BGC 16.55) is down 13.1% year-to-date, yet it said the magic words this morning that have gotten its stock moving in pre-market action. Specifically, the company said it is launching a review of strategic alternatives to maximize shareholder value, including a potential sale of the company.
Shares of General Cable, which designs, develops, manufactures, markets, and distributes copper, aluminum and fiber optic wire and cable products for the energy, industrial and communications markets, are up 3.0%.
This review comes in the wake of a business transformation process over the last two years intended to make the company more efficient and more profitable, yet industry dynamics, according to the company, are masking its accomplishments.
The expectation that challenging industry dynamics will persist through the second half of 2017 and into 2018 has prompted General Cable's Board to initiate the strategic review process. There won't be any disclosure on the review unless the Board has approved a specific transaction or determines further disclosure is appropriate.
Separately, General Cable disclosed in conjunction with today's news that it expects to report second quarter revenues of approximately $923 million for North America, Europe and Latin America and adjusted operating income of $32 million.
Following its first quarter report in May, the company said it expected second quarter revenues in the range of $925 to $975 million and adjusted operating income to be between $30 and $45 million. The outlook for adjusted operating results did not include results from Asia Pacific and Africa.
General Cable plans to report its second quarter results on August 2, 2017.