General Cable Corporation (BGC): Richard Pzena Increase Stake Despite Plummeting Share Prices

At the end of 2014, General Cable concluded the sale of its stake in Phelps Dodge International Philippines, Inc., which allowed it to obtain $67 million in cash. The proceeds will be directed towards the reduction of the outstanding debt currently affecting the company’s assets in North America and Europe. Furthermore, this recent transaction comes as part of General Cable’s overall plan to divest all of its operations in the Asia Pacific and Africa regions. According to the company, this will result in a simplified geographic portfolio and in turn, enable it to concentrate on its core strategic markets.

Meanwhile, as General Cable Corporation (NYSE:BGC)’s stock has been plummeting over the past year, in December the company announced a quarterly dividend of $0.18 per share on its outstanding stock. Furthermore, the Board of Directors recently appointed new executives, lending new strength and experience to the company’s leadership team.  In addition, General Cable created a new position – Senior Vice President, Chief Compliance Officer – which will be filled by Kurt L. Drake, who has more than 19 years of experience in the fields of compliance and finance.

Pzena Investment Management is surely hoping to hear some good news at General Cable’s upcoming webcast discussion of its fourth quarter earnings. Currently, quarterly earnings consensus estimate stands at $0.44 per share, up from $0.36 per share the company reported for the fourth quarter of 2013. In addition, the revenue for the fourth quarter is expected at $1.6 billion, compared to $1.7 billion posted for the same period last year. Furthermore, for full-2014, analysts expect earnings of $1.09 per share, with revenue estimated to reach $6.1 billion.

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