BREAKING NEWS

After adding nearly 70 East Texas jobs in 2016, General Cable could be going up for sale

Harrison County, Texas (KETK) - Just a year after adding nearly 70 jobs in East Texas, General Cable could be going up for sale.

The company, headquartered  in Highland Heights, Kentucky, develops, designs, manufactures, markets and distributes copper, aluminum and fiber optic wire and cable products for the energy, industrial, specialty and communications markets.

The corporation expanded their Harrison County facility just over a year ago. In addition to the new jobs, the Marshall News-Messenger reports the company invested $23,000,000 in a new building, which added approximately 100,000 square feet of workspace. They also purchased new equipment.

According to Nasdaq.com, General Cable Corp. (NYSE: BGC) said its board has "initiated a review of strategic alternatives to maximize shareholder value, including a potential sale of the company." 

“After careful consideration, our Board has determined to undertake a review of strategic alternatives with the goal of maximizing shareholder value," John E. Welsh, III, Non-Executive Chairman of the Board said. "While the management team has made excellent progress in the execution of our strategic roadmap to transform the Company into a more focused, efficient and innovative organization, we expect the industry to consolidate over time and believe the review at this time is in the best interests of shareholders.”

J.P. Morgan Securities LLC and Sullivan & Cromwell LLP have been hired as financial and legal advisors, respectively.

“I am proud of the efforts of our people to transform our business over the last two years, including rationalizing the asset base and refocusing on core businesses, streamlining our supply chain, and accelerating profitable growth in key segments," Michael T. McDonnell, President and Chief Executive Officer said. "While we are benefiting from these significant operational and financial performance improvements, current dynamics in our industry are masking those accomplishments, and we expect that trend to continue through the second half of 2017 and into 2018. As the Board conducts its review, we remain committed to executing our plan, to competing and to continuing to deliver innovative wire and cable solutions that exceed customer expectations.”

Nasdaq.com reports the company expects a second quarter reported operating loss of $23,000,000 and an adjusted operating income of $32,000,000.

General Cable expects to release exact second quarter numbers on August 2, 2017, which could ultimately determine the company's fate.


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