General Cables got fined $75 million for Business Bribery

2017.01.07

General Cables got fined $75 million for Business Bribery

The US Securities and Exchange Commission (SEC) said Thursday that General Cable, based in Kentucky, agreed to pay a total of more than $ 75 million to the US Department of Justice and the Securities and Exchange Commission for a summary of its alleged violation of the US Securities and Exchange Commission's (SEC) Allegations of the US Foreign Corrupt Practices Act. The company is accused of bribing local government officials in China, Angola, Bangladesh, Egypt, Indonesia and Thailand to win business.

General Cable Corporation, based in Kentucky, is a global wire and cable manufacturer engaged in the development, design, manufacture, sale and distribution of copper, aluminum and fiber optic cable products covering energy, industrial , Professional, construction and communication markets. In October 2014, General Cable announced its withdrawal from the Asian and African markets, focusing on the development of the Americas and Europe, and plans to divest the nine manufacturing plants in the Asia-Pacific region and five production plants in Africa, a total of about 1 billion US dollars.

General Electric, Apar Industries, Nexans, CTC Global and Sterlite Technologies India have become the top five electric conductor suppliers in the global power industry, according to a report by the supplier of the electricity market for electric conductors from international market research firm Technavio.

In FY2015, General Cable achieved sales of $ 4.255 billion, a decrease of 21.60% from the previous year's $ 5.389 billion. Net income attributable to the Company's common shareholders was $ 122 million.

According to the investor brief, General Cable will begin the transition plan in the fourth quarter of 2015, with the goal of increasing sales revenue to US $ 4.4 billion by the end of 2018 and increasing its adjusted operating income to US $ 335 million to maintain the current dividend level.

It is reported that the purpose of the General Cable three-year transition plan (2015-2018) is to reduce the debt, improve the cost structure, increase innovation, market innovation products.

Currently, the two major markets for general cable are power and power infrastructure products, accounting for 64% of total revenue. With the adjustment of business structure, is expected to 2018, this proportion will be further improved. In the fastest-growing category of applications, the wind and solar industries will be the two target markets for general-purpose cables, with an expected compound annual growth rate of 10% and 15%.

However, the pre-transformation of regional expansion and accounting violations and other issues, many high-level cable began to resign, or even dismissed. According to the latest news, Brian Robinson, vice president and chief financial officer of General Cable, who has served 17 years at General Cable, has announced his resignation, and General Cable will hire Heidrick & Struggles International to help find a new chief financial officer. Completed in the second half.

Overall, demand for distribution and non-residential construction in the North American market rose in January-September 2016, but the demand for industrial cables and specialty cables continued to decline in the oil and gas sector, down 5% and 50% year-on-year respectively / RTI; In Europe, the terminal application market demand is basically the same as last year. While Latin America is experiencing a slowdown in demand for investment in power infrastructure and infrastructure projects.

"Overall third-quarter results were weaker than expected due to temporary weak demand in North America and continued pressure on Latin American markets," said Michael T. McDonnell, Chief Executive Officer of General Cable Corp. "Looking ahead to the fourth quarter, we expect all sales volumes to increase At the same time, the strategic reorganization of enterprises will continue to promote the stable sale of Asian - African market assets will further reduce the debt burden of the company to create an efficient business structure.

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