Nexans makes EUR 178 mln net loss in 2011

French cable maker Nexans made a EUR 178 million net loss in 2011, after a substantial provision for an ongoing European competition investigation, compared to a EUR 82 net profit a year earlier. Nexans made a EUR 48 million operating loss, after a EUR 195 million operating profit, and sales at EUR 4.59 billion (vs EUR 4.31 billion). The group's telecom business sales rose by over 5 percent to EUR 446 million from EUR 426 million. Within the total, the telecom infrastructure business generated EUR 208 million in sales, up 11.9 percent on EUR 182 million a year earlier. Copper cables represent almost half the sales for this business. They were driven by strong demand in Europe and South America. Growth for fiber optic cables and accessories, the other half of this sector's sales, was close to 8 percent. The private networks (LAN) division's turnover slipped to EUR 238 million from EUR 244 million, with strong growth in Asia and South America, but demand down slightly in Europe and flat in North America. The slow recovery of the data centers market was not able to offset the sluggish commercial building market. The two divisions' margins were EUR 13 million and EU 17 million, respectively, compared to EUR 9 million and EUR 16 million in 2010. Nexans proposes to pay a dividend of EUR 1.10 per share. Nexans chairman and CEO Frederic Vincent said the group had met its guidance for 2011 and was confident of growing in 2012 if the economic environment remains the same. A reorganisation of European operations will make a positive contribution.