Christopher Guérin, the new CEO of the cable manufacturer, is launching a program to restore the group's competitiveness.
THE ECONOMY WORLD
by Denis Cosnard
This is the last remnant of the General Electricity Company (CGE), the former large French industrial empire, now Alcatel-Alstom. Alcatel was sold to the Finnish Nokia, Alstom was split between Siemens and General Electric, Saft was absorbed by Total, the shipyards of Saint-Nazaire are under the thumb of the Italian Fincantieri. Only Nexans remained independent. But the French cabinet champion, which achieved a turnover of 6.4 billion euros in 2017, is also vulnerable and under threat. A hard blow, and he might fall. Avoiding Crisis, Sustaining Nexans Sustainably: this is the purpose of the battle plan that will be presented by the new General Director, Christopher Guérin, on Friday, November 9, along with a new reduction in annual forecasts. The group was coldly welcomed by investors, the share fell early with 17% in the session.
The plan provides for the freezing of some of the investments to maintain cash flow, and measures to reduce costs by 20 million euros by 2021, including "Optimization of the industrial base". This announces restructuring and probable job losses, not yet quantified. It is a matter of quickly restoring the situation of problematic activities. "More than 45 people will take care of it in command mode, explains Guérin. Structures that lose money must report every week instead of every three months for those who do well. " After a decline in 2018, the gross operating surplus should recover by 20% from 2021 to 500 million euros.
Moreover, mr. Guérin will soon have to appoint a new management team, with probably a new financial manager. The current non-executive president, Georges Chodron de Courcel, should also be replaced at the next general meeting.
The stock plunged 55% into a …