General Cable Corporation (BGC) entered into a joint venture with International Cable Industries LLC (ICI), a limited liability company in Oman for distribution of wire and cable products.
With the gradual recovery in the global economic conditions, there has been an enhancement in investment in large-scale transportation, construction, oil and gas, power generation, transmission and distribution infrastructure.
General Cable, the majority interest holder in the venture will primarily explore opportunities in the energy, electrical infrastructure and construction markets of Oman and other Gulf Cooperation Council (GCC) countries. The joint venture will enable the company to supply a full range of its products in the markets of these countries.
Based in Highland Heights , Kentucky , General Cable Corporation is a global leader in developing, designing, manufacturing, marketing, distributing and installing copper, aluminum, and fiber optic wire and cable products. The company’s products are for the energy, industrial, specialty and communications markets.
We believe the company is well positioned to benefit as one of the world’s leading providers of wire and cable over the long term. Acquisitions have been an important way through which the company has been broadening its geographic reach and depth of product offerings over the last decade.
Moreover, the company’s efficient management team, its focus on continuous cost reduction and scale advantages will likely provide a solid foundation for its long-term earnings growth.
However, stiff competition from across the different product categories might impact the company’s financial results and also influence factors such as price, quality, breadth of product line, inventory availability, delivery time and customer service. A major competitor of General Cable is Sumitomo Electric Industries Ltd. (SMTOY.PK).
We currently maintain a Neutral recommendation on the stock, supported by Zacks # 3 (Hold) Rank.
GENL CABLE CORP (BGC): Free Stock Analysis Report
Zacks Investment Research
