General Cable Reports Third Quarter Results; Completes Acquisition of Phelps Dodge International Corporation

    HIGHLAND HEIGHTS, KY., October 31 /CNW/ - General Cable Corporation
(NYSE:  BGC) reported today revenues and earnings for the third quarter.
Revenues were $1,135.3 million compared to $948.4 million in the prior year,
an increase of 19.7%. Net income applicable to common shareholders for the
third quarter of 2007 was $61.1 million compared to $37.0 million in the third
quarter of 2006. Earnings per share for the third quarter of 2007 were $1.11,
an increase of 56% from third quarter of 2006.

    Third Quarter Highlights

    --  Improved operating income by 40% from prior year

    --  Increased year-over-year operating margins by 110 basis points, on a
metal-adjusted basis

    --  Generated approximately $106 million of cash flow from operations in
the third quarter

    Additional Highlights

    --  Completed the acquisition of Phelps Dodge International Corporation
(PDIC) on October 31, 2007

    --  Announced realigned global operating management structure; focusing
business leaders geographically, effective November 1, 2007

    --  Completed offering of $475 million of 1% senior convertible notes due
2012, on October 2, 2007

    Third Quarter Results

    Net sales for the third quarter of 2007 were $1,135.3 million, an
increase of $194.0 million or 20.6% compared to the third quarter of 2006 on a
metal-adjusted basis. Without the impact of acquisitions, revenue growth was
approximately 12.1% in the third quarter of 2007 compared to 2006. This growth
was principally due to the continuing strength of the Company's global
electrical infrastructure and electric utility businesses, as well as
favorable foreign exchange translation, which together more than offset the
impact of declining telecommunications and residential construction demand.
Revenues from acquired businesses contributed $80.3 million in the third

    The average price per pound of copper in the third quarter was $3.48, an
increase of $0.02 from the second quarter of 2007, and a decrease of $0.06 or
1.7% from the third quarter of 2006. The average price per pound of aluminum
in the third quarter was $1.19, a decrease of $0.09, or 7% from the second
quarter of 2007, and equal to the third quarter of 2006.

    Third quarter 2007 operating income was $92.3 million compared to
operating income of $65.8 million in the third quarter of 2006, an increase of
$26.5 million or 40.3%. Operating margin was 8.1% in the third quarter of
2007, an increase of approximately 110 basis points from the operating margin
percentage of 7.0% in the third quarter of 2006 on a metal-adjusted basis.
This improvement was principally due to better price realization in many of
the Company's product lines, operating improvements in acquired businesses,
cost improvements from LEAN initiatives, and approximately $2.4 million in
LIFO gains from the liquidation of lower cost inventory, all of which more
than offset the impact of lower capacity utilization rates for certain
construction and telecommunications product lines.

    Included in the earnings results for the third quarter of 2007 was
approximately $0.08 per share of tax benefits resulting from prior year tax
provision true-ups. In addition, the 2007 estimated full year effective tax
rate has been reduced to 36% as a result of the increasing relative mix of
income generated in lower tax rate countries and the impact of effective tax
planning strategies.

    Market Update

    In North America, revenues increased 9.7% in the third quarter compared
to 2006 on a metal-adjusted basis. This top line improvement is net of nearly
a 20% drop in metal-adjusted revenues for telecommunications products sold
primarily to telephone operating companies. Without the impact of
telecommunications products, North American metal-adjusted revenue grew at
16.1% in the third quarter of 2007 compared to 2006. Operating margin has
increased by 190 basis points to 8.7%. With the exception of
telecommunications products, all North American businesses reported increased
revenues and earnings during the third quarter of 2007 compared to the prior
year. The Company has continued to benefit from its exposure to a wide range
of strong end markets including electric utility, electrical infrastructure,
networking, and electronics that are more than offsetting continued
telecommunications product declines and the impact of a weak housing market on
certain utility cable product families. The Company is examining its
telecommunications footprint in the context of various demand scenarios.

    European electric utility and electrical infrastructure markets broadly
continue to remain robust with the exception of Spanish construction.
Operating earnings in the Company's European business grew by 35% to $36.8
million in the third quarter of 2007 compared to the prior year. Operating
margin was 7.5% in the third quarter, equal to the same period in 2006 on a
metal adjusted basis. Revenues were up 35% in the quarter on a metal-adjusted
basis. Before the impact of acquired businesses and favorable changes in
exchange rates, organic growth was 7.5%, despite approximately a 20% decline
in demand for cables used in Spanish residential construction since the end of
2006. The Company has initiated growth strategies in other European markets
for these low voltage products including the European do-it-yourself markets.
"The Company's European operations are showing strong results, particularly
from businesses recently acquired. NSW is actively developing products for
submarine power and long-haul fiber optic communications markets and Silec's
high voltage solid dielectric underground cable systems continue to gain
momentum globally. Both businesses are booking projects into the 2009
timeframe. At ECN, we are nearing completion of an important technology
transfer which will allow ECN to manufacture the Company's trapezoidal design
hardened steel core overhead transmission cable. This cable effectively
provides about 75% more capacity compared to a similar sized cable of a
traditional design, perfect for the congested rights of way in Europe," Kenny

    Completion of Acquisition of Phelps Dodge International Corporation

    Today, the Company completed the acquisition of PDIC from
Freeport-McMoRan Copper & Gold Inc. "This is a transformative transaction for
General Cable and one that accelerates our globalization plans by many years.
The developing economies that are served by PDIC are continuing to grow much
faster than the developed world. During the planning process for the
integration of this acquisition, the management teams of both General Cable
and PDIC have been encouraged by the level of common business philosophies and
the opportunities this transaction presents for more efficient utilization of
our combined manufacturing capacity, the ability to enter new markets, and
improvements in raw material and equipment costs," Kenny said.

    In connection with the acquisition of PDIC, the Company recently
completed an offering of $475 million of 1% Senior Convertible Notes due 2012.
Proceeds from this offering were used to partially fund the acquisition of
PDIC. Additionally, as part of the funding of the acquisition of PDIC, the
Company increased the borrowing capacity of its United States revolving asset
backed loan (ABL) from $300 million to $400 million, effective October 31,
2007. This increase will provide additional liquidity to fund future
acquisitions and internal growth opportunities.

    Management Announcements

    The Company has announced several management changes effective November
1, 2007, which will align the Company's management structure along geographic
lines. The Company welcomes Mathias Sandoval to General Cable as Executive
Vice President and Chief Executive Officer of our combined operations in Latin
America, Sub-Saharan Africa and the Middle East/Asia Pacific. This includes
the historical General Cable Asia Pacific and Central and South American
businesses of the Company, as well as Mexico. Domingo Goenaga has been
promoted to Executive Vice President and Chief Executive Officer of General
Cable Europe and North Africa and will continue in his current capacity.
Gregory Lampert has been promoted to Executive Vice President and Group
President of the North American Electrical and Communications Infrastructure
Group. This business includes products supporting data, telephone, industrial
power, assemblies and electronic applications. J. Michael Andrews has been
promoted to Executive Vice President and Group President of the North American
Energy Infrastructure and Technology Group. This business includes products
supporting energy exploration, production, transmission, and distribution
applications. Roddy Macdonald has been promoted to Executive Vice President of
Global Sales and Business Development. In addition to leading our North
American Sales organization, Mr. Macdonald will work with our business and
sales leaders around the globe to align our commercial strategies and ensure
that we will present one face to global customers across all regions and
businesses. Each of these individuals will report directly to Gregory B.

    "Over the last decade, the General Cable management team has successfully
grown the Company from a U.S. centric business focused on communications and
construction cables, to a truly international Company with approximately
two-thirds of its projected revenues generated outside of the United States
and a product range and geographic diversity second to none," Kenny said. "I
expect these leaders to be relentless in their drive for continuous
improvement; have the vision to identify new markets and business
opportunities before they become popular; and have the strength and wisdom to
profitably navigate the Company into the future through all market conditions.
I believe we have one of the most thoughtful and energetic management teams in
the business that we can continue to leverage as we expand globally."

    Preferred Stock Dividend

    In accordance with the terms of the Company's 5.75% Series A Convertible
Redeemable Preferred Stock, the Board of Directors has declared a regular
quarterly preferred stock dividend of approximately $0.72 per share. The
dividend is payable on November 24, 2007 to preferred stockholders of record
as of the close of business on October 31, 2007. The Company expects the
quarterly dividend payment to approximate $0.1 million

    Fourth Quarter 2007 Outlook

    The Company continues to benefit from strong global demand for many of
our products. The North American Electric Reliability Corporation (NERC)
recently suggested that many regions in North America will fall below their
target electricity capacity margins within the next two or three years.
Additionally, NERC suggested that planned transmission projects are
significantly higher than projected a year ago. The Company believes this
assessment supports our view of a continuation of a long-term upgrade cycle
for the aging transmission grid. However, demand for low voltage utility
products in North America will likely continue to be weak as a result of
continued new home construction weakness with particular impact on low voltage
distribution products. As a result, we expect growth in the overall utility
segment to moderate. The Company will be lowering production levels of certain
utility products in North America in the fourth quarter in an effort to better
align its production and inventory mix with end market demand, which will have
the benefit of increasing operating cash flows. While this will result in some
short-term inefficiency in certain manufacturing facilities, overall the
Company is expected to grow operating earnings by 20% or more in the fourth
quarter compared to the prior year before the benefit of PDIC.

    Revenues for the fourth quarter without PDIC are expected to be
approximately $1.05 billion, an increase of 12% from the fourth quarter of
2006 on a metal adjusted basis. In addition, PDIC will contribute
approximately $220 million of revenues for the balance of the fourth quarter.
For the fourth quarter, the Company expects to report earnings per share of
approximately $0.80 to $0.85, including estimated contributions from the PDIC
operations, the related financing impact, and purchase accounting related
expenses. "Looking forward, we are increasing our accretion guidance for 2008
related to the acquisition of PDIC from a range of $0.20 to $0.30 to a range
of $0.40 to $0.50 due to the continuing strength of PDIC's end markets," Kenny

    General Cable will discuss third quarter results on a conference call and
webcast at 8:30 a.m. ET tomorrow, November 1, 2007. For more information
please see our website at

    General Cable (NYSE:  BGC) is a global leader in the development, design,
manufacture, marketing and distribution of copper, aluminum and fiber optic
wire and cable products for the energy, industrial, and communications
markets. Visit our website at

    Certain statements in this press release, including without limitation,
statements regarding future financial results and performance, plans and
objectives, capital expenditures and the Company's or management's beliefs,
expectations or opinions, are forward-looking statements. Actual results may
differ materially from those statements as a result of factors, risks and
uncertainties over which the Company has no control. Such factors include the
economic strength and competitive nature of the geographic markets that the
Company serves; economic, political and other risks of maintaining facilities
and selling products in foreign countries; changes in industry standards and
regulatory requirements; advancing technologies, such as fiber optic and
wireless technologies; volatility in the price of copper and other raw
materials, as well as fuel and energy and the Company's ability to reflect
such volatility in its selling prices; interruption of supplies from the
Company's key suppliers; the failure to negotiate extensions of the Company's
labor agreements on acceptable terms; the Company's ability to increase
manufacturing capacity and achieve productivity improvements; the Company's
dependence upon distributors and retailers for non-exclusive sales of certain
of the Company's products; pricing pressures in the Company's end markets; the
Company's ability to maintain the uncommitted accounts payable or accounts
receivable financing arrangements in its European operations; the impact of
any additional charges in connection with plant closures and the Company's
inventory accounting practices; the impact of certain asbestos litigation,
unexpected judgments or settlements and environmental liabilities; the ability
to successfully identify, finance and integrate acquisitions; the impact of
terrorist attacks or acts of war which may affect the markets in which the
Company operates; the Company's ability to retain key employees; the Company's
ability to service debt requirements and maintain adequate domestic and
international credit facilities and credit lines; the impact on the Company's
operating results of its pension accounting practices; volatility in the
market price of the Company's common stock all of which are more fully
discussed in the Company's Report on Form 10-K filed with the Securities and
Exchange Commission on March 1, 2007, as well as periodic reports filed with
the Commission.

                               TABLES TO FOLLOW

                  General Cable Corporation and Subsidiaries
                    Consolidated Statements of Operations
                     (in millions, except per share data)

                                   ------------------- -------------------
                                   Three Fiscal Months Nine Fiscal Months
                                          Ended               Ended
                                   ------------------- -------------------
                                   Sept. 28, Sept. 29, Sept. 28, Sept. 29,
                                        2007      2006      2007      2006
                                   --------- --------- --------- ---------
    Net sales                      $1,135.3    $948.4  $3,317.0  $2,739.8
    Cost of sales                     971.8     826.4   2,820.6   2,390.7
                                   --------- --------- --------- ---------
    Gross profit                      163.5     122.0     496.4     349.1

    Selling, general and
     administrative expenses           71.2      56.2     210.0     170.7
                                   --------- --------- --------- ---------
    Operating income                   92.3      65.8     286.4     178.4
    Other income (expense)             (1.3)     (0.3)     (2.8)      0.7
    Interest income (expense):
       Interest expense               (10.2)     (8.3)    (29.7)    (30.7)
       Interest income                  5.1       0.7      12.0       1.9
       Loss on extinguishment of
        debt                            0.0       0.0     (25.1)      0.0
                                   --------- --------- --------- ---------
                                       (5.1)     (7.6)    (42.8)    (28.8)
                                   --------- --------- --------- ---------

    Income before income taxes         85.9      57.9     240.8     150.3
    Income tax provision              (24.7)    (20.8)    (78.8)    (50.3)
                                   --------- --------- --------- ---------
    Net income                         61.2      37.1     162.0     100.0
    Less: preferred stock
     dividends                         (0.1)     (0.1)     (0.3)     (0.3)
                                   --------- --------- --------- ---------
    Net income applicable to common
     shareholders                  $   61.1    $ 37.0  $  161.7  $   99.7
                                   --------- --------- --------- ---------
    Earnings per share
    Earnings per common share -
     basic                         $   1.19    $ 0.74  $   3.16  $   2.00
                                   --------- --------- --------- ---------
    Weighted average common shares
     - basic                           51.3      50.3      51.1      49.8
                                   --------- --------- --------- ---------
    Earnings per common share -
     assuming dilution             $   1.11    $ 0.71  $   2.99  $   1.93
                                   --------- --------- --------- ---------
    Weighted average common shares
     - assuming dilution               55.0      52.6      54.2      51.9
                                   --------- --------- --------- ---------


                         Consolidated Balance Sheets
                       (in millions, except share data)

                                                September 28, December 31,
    ASSETS                                          2007          2006
    ------------------------------------------- --------------------------
    Current Assets:                              (unaudited)
     Cash and cash equivalents                      $  479.6     $  310.5
     Receivables, net of allowances of $16.7
      million at September 28, 2007 and $10.0
      million at December 31, 2006                     952.6        723.7
     Inventories                                       641.1        563.1
     Deferred income taxes                             111.3        104.1
     Prepaid expenses and other                         56.9         32.9
                                                ------------- ------------
      Total current assets                           2,241.5      1,734.3

    Property, plant and equipment, net                 484.6        416.7
    Deferred income taxes                               34.2         28.8
    Other non-current assets                            43.9         38.9
                                                ------------- ------------
      Total assets                                  $2,804.2     $2,218.7
                                                ------------- ------------
    Current Liabilities:
     Accounts payable                               $  785.8     $  655.4
     Accrued liabilities                               394.8        284.3
     Current portion of long-term debt                  97.4         55.5
                                                ------------- ------------
      Total current liabilities                      1,278.0        995.2

    Long-term debt                                     724.1        685.1
    Deferred income taxes                               13.0         13.2
    Other liabilities                                  164.3         90.8
                                                ------------- ------------
      Total liabilities                              2,179.4      1,784.3
                                                ------------- ------------
    Shareholders' Equity:
     Redeemable convertible preferred stock, at
      redemption value
      (liquidation preference of $50.00 per
      September 28, 2007 - 101,940 outstanding
      December 31, 2006 - 101,949 outstanding
       shares                                            5.1          5.1
     Common stock, $0.01 par value, issued and
      outstanding shares:
      September 28, 2007 - 52,334,098 (net of
       5,124,278 treasury shares)
      December 31, 2006 - 52,002,052 (net of
       4,999,035 treasury shares)                        0.6          0.6
     Additional paid-in capital                        265.3        245.5
     Treasury stock                                    (60.2)       (53.0)
     Retained earnings                                 381.8        238.8
     Accumulated other comprehensive income
      (loss)                                            32.2         (2.6)
                                                ------------- ------------
      Total shareholders' equity                       624.8        434.4
                                                ------------- ------------
      Total liabilities and shareholders'
       equity                                       $2,804.2     $2,218.7
                                                ------------- ------------

For further information:

For further information: General Cable Corporation Michael P. Dickerson,
859-572-8684 Vice President of Finance and Investor Relations

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