##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 28, 2007
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to.
 Commission file number: 1-12983
 GENERAL CABLE CORPORATION
  Delaware(State or other jurisdiction of 
incorporation or organization)
    
    06-1398235(I.R.S. Employer Identification No.)4 Tesseneer Drive 
Highland Heights, KY(Address of principal executive offices)
    
    41076-9753(Zip Code)
 Registrants telephone number, including area code: (859) 572-8000
 þ o
  þ o o
 o þ
  Class
    
    Outstanding at November 1, 2007Common Stock, $0.01 per value
    
    52,507,191




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I
    
    Financial StatementsItem 1.
    
    Condensed Consolidated Financial Statements (Unaudited)Statements of Operations -- For the three fiscal months and nine fiscal months ended September 28, 2007 and September 29, 2006
    
    3Balance Sheets - September 28, 2007 and December 31, 2006
    
    4Statements of Cash Flows - For the nine fiscal months ended September 28, 2007 and September 29, 2006
    
    5Notes to Condensed Consolidated Financial Statements
    
    6Item 2.
    
    Management's Discussion and Analysis of Financial Condition and Results of Operations
    
    31Item 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    51Item 4.
    
    Controls and Procedures
    
    52PART II
    
    Other InformationItem 1.
    
    Legal Proceedings
    
    53Item 1A.
    
    Risk Factors
    
    53Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    54Item 3.
    
    Defaults Upon Senior Securities
    
    54Item 5.
    
    Other Information
    
    55Item 6.
    
    Exhibits
    
    55Signature
    
    
    
    56Exhibit Index
    
    57EX-10.109EX-12.1EX-31.1EX-31.2EX-32.1
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PART I. FINANCIAL STATEMENTS
 
 ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Condensed Consolidated Statements of Operations
(in millions, except per share data)
 (unaudited)
 Three Fiscal Months Ended
    
    
    Nine Fiscal Months EndedSept. 28,
    
    
    Sept. 29,
    
    
    Sept. 28,
    
    
    Sept. 29,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    1,135.3
    
    
    $
    948.4
    
    
    $
    3,317.0
    
    
    $
    2,739.8Cost of sales
    
    
    971.8
    
    
    
    826.4
    
    
    
    2,820.6
    
    
    
    2,390.7Gross profit
    
    
    163.5
    
    
    
    122.0
    
    
    
    496.4
    
    
    
    349.1Selling, general and administrative expenses
    
    
    71.2
    
    
    
    56.2
    
    
    
    210.0
    
    
    
    170.7Operating income
    
    
    92.3
    
    
    
    65.8
    
    
    
    286.4
    
    
    
    178.4Other income (expense)
    
    
    (1.3
    )
    
    
    (0.3
    )
    
    
    (2.8
    )
    
    
    0.7Interest income (expense):Interest expense
    
    
    (10.2
    )
    
    
    (8.3
    )
    
    
    (29.7
    )
    
    
    (30.7
    )Interest income
    
    
    5.1
    
    
    
    0.7
    
    
    
    12.0
    
    
    
    1.9Loss on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    (25.1
    )
    
    
    (5.1
    )
    
    
    (7.6
    )
    
    
    (42.8
    )
    
    
    (28.8
    )Income before income taxes
    
    
    85.9
    
    
    
    57.9
    
    
    
    240.8
    
    
    
    150.3Income tax provision
    
    
    (24.7
    )
    
    
    (20.8
    )
    
    
    (78.8
    )
    
    
    (50.3
    )Net income
    
    
    61.2
    
    
    
    37.1
    
    
    
    162.0
    
    
    
    100.0Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.3
    )
    
    
    (0.3
    )Net income applicable to common shareholders
    
    $
    61.1
    
    
    $
    37.0
    
    
    $
    161.7
    
    
    $
    99.7Earnings per shareEarnings per common share-basic
    
    $
    1.19
    
    
    $
    0.74
    
    
    $
    3.16
    
    
    $
    2.00Weighted average common shares-basic
    
    
    51.3
    
    
    
    50.3
    
    
    
    51.1
    
    
    
    49.8Earnings per common share-assuming dilution
    
    $
    1.11
    
    
    $
    0.71
    
    
    $
    2.99
    
    
    $
    1.93Weighted average common shares-assuming dilution
    
    
    55.0
    
    
    
    52.6
    
    
    
    54.2
    
    
    
    51.9
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Condensed Consolidated Balance Sheets
(in millions, except share data)
 (unaudited)
 Sept. 28,
    
    
    Dec. 31,2007
    
    
    2006AssetsCurrent Assets:Cash and cash equivalents
    
    $
    479.6
    
    
    $
    310.5Receivables, net of allowances of $16.7 million at September 28, 2007 and
$10.0 million at December 31, 2006
    
    
    952.6
    
    
    
    723.7Inventories
    
    
    641.1
    
    
    
    563.1Deferred income taxes
    
    
    111.3
    
    
    
    104.1Prepaid expenses and other
    
    
    56.9
    
    
    
    32.9Total current assets
    
    
    2,241.5
    
    
    
    1,734.3Property, plant and equipment, net
    
    
    484.6
    
    
    
    416.7Deferred income taxes
    
    
    34.2
    
    
    
    28.8Other non-current assets
    
    
    43.9
    
    
    
    38.9Total assets
    
    $
    2,804.2
    
    
    $
    2,218.7Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    785.8
    
    
    $
    655.4Accrued liabilities
    
    
    394.8
    
    
    
    284.3Current portion of long-term debt
    
    
    97.4
    
    
    
    55.5Total current liabilities
    
    
    1,278.0
    
    
    
    995.2Long-term debt
    
    
    724.1
    
    
    
    685.1Deferred income taxes
    
    
    13.0
    
    
    
    13.2Other liabilities
    
    
    164.3
    
    
    
    90.8Total liabilities
    
    
    2,179.4
    
    
    
    1,784.3Commitments and ContingenciesShareholders Equity:Redeemable convertible preferred stock, at redemption value
(liquidation preference of $50.00 per share):September 28, 2007  101,940 outstanding sharesDecember 31, 2006  101,949 outstanding shares
    
    
    5.1
    
    
    
    5.1Common stock, $0.01 par value, issued and outstanding shares:September 28, 2007  52,334,098 (net of 5,124,278 treasury shares)December 31, 2006  52,002,052 (net of 4,999,035 treasury shares)
    
    
    0.6
    
    
    
    0.6Additional paid-in capital
    
    
    265.3
    
    
    
    245.5Treasury stock
    
    
    (60.2
    )
    
    
    (53.0
    )Retained earnings
    
    
    381.8
    
    
    
    238.8Accumulated other comprehensive income (loss)
    
    
    32.2
    
    
    
    (2.6
    )Total shareholders equity
    
    
    624.8
    
    
    
    434.4Total liabilities and shareholders equity
    
    $
    2,804.2
    
    
    $
    2,218.7
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Condensed Consolidated Statements of Cash Flows
(in millions)
(unaudited)
 Nine Fiscal Months EndedSept. 28,
    
    
    Sept. 29,2007
    
    
    2006Cash flows of operating activities:Net income
    
    $
    162.0
    
    
    $
    100.0Adjustments to reconcile net income to net cash flows of
operating activities:Depreciation and amortization
    
    
    42.9
    
    
    
    38.3Loss on extinguishment of debt
    
    
    25.1
    
    
    
    Foreign currency exchange (gain) loss
    
    
    2.8
    
    
    
    (0.7
    )Deferred income taxes
    
    
    (5.0
    )
    
    
    7.5Excess tax benefits from stock-based compensation
    
    
    (10.4
    )
    
    
    (11.4
    )Loss on disposal of property
    
    
    1.2
    
    
    
    1.4Changes in operating assets and liabilities, net of effect of
acquisitions:Increase in receivables
    
    
    (151.7
    )
    
    
    (205.6
    )Increase in inventories
    
    
    (23.0
    )
    
    
    (79.2
    )Increase in other assets
    
    
    (8.4
    )
    
    
    (2.1
    )Increase in accounts payable, accrued and other liabilities
    
    
    116.3
    
    
    
    245.9Net cash flows of operating activities
    
    
    151.8
    
    
    
    94.1Cash flows of investing activities:Capital expenditures
    
    
    (73.9
    )
    
    
    (46.5
    )Proceeds from properties sold
    
    
    0.8
    
    
    
    0.5Proceeds from acquisitions including cash acquired
    
    
    28.0
    
    
    
    Acquisitions, net of cash acquired
    
    
    (9.9
    )
    
    
    (28.1
    )Other, net
    
    
    1.7
    
    
    
    0.6Net cash flows of investing activities
    
    
    (53.3
    )
    
    
    (73.5
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.3
    )
    
    
    (0.3
    )Excess tax benefits from stock-based compensation
    
    
    10.4
    
    
    
    11.4Proceeds from revolving credit borrowings
    
    
    
    
    
    
    144.5Repayments of revolving credit borrowings
    
    
    
    
    
    
    (198.3
    )Issuance of long-term debt, net of fees and expenses
    
    
    318.3
    
    
    
    Repayments of long-term debt, including fees and expenses
    
    
    (300.6
    )
    
    
    Proceeds of other debt
    
    
    26.7
    
    
    
    10.4Proceeds from exercise of stock options
    
    
    5.5
    
    
    
    17.7Net cash flows of financing activities
    
    
    60.0
    
    
    
    (14.6
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    10.6
    
    
    
    2.2Increase in cash and cash equivalents
    
    
    169.1
    
    
    
    8.2Cash and cash equivalents  beginning of period
    
    
    310.5
    
    
    
    72.2Cash and cash equivalents  end of period
    
    $
    479.6
    
    
    $
    80.4Supplemental InformationCash paid during the period for:Income tax payments, net of refunds
    
    $
    57.3
    
    
    $
    20.5Interest paid
    
    $
    32.4
    
    
    $
    21.9Non-cash investing and financing activities:Issuance of nonvested shares
    
    $
    4.2
    
    
    $
    6.0Entrance into capital leases
    
    $
    
    
    
    $
    0.1
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Notes to Condensed Consolidated Financial Statements (unaudited)
 1. Basis of Presentation and Principles of Consolidation
   2. New Accounting Standards
 Definition of Settlement in FASB Interpretation
No. 48
 The Fair Value Option for Financial Assets and Financial
Liabilities  Including an Amendment of FASB Statement No. 115
 Fair Value Measurements
 3. Acquisitions and Divestitures
  6




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
   As ofApril 30, 2007Cash
    
    $
    12.3Accounts receivable
    
    
    27.3Inventories
    
    
    27.4Property, plant and equipment
    
    
    0.9Other current and noncurrent assets
    
    
    1.6Total assets
    
    $
    69.5Current liabilities
    
    $
    38.2Other liabilities
    
    
    0.4Pension liabilities
    
    
    41.9Total liabilities
    
    $
    80.5
       4. Inventories
  7




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
   Sept. 28,
    
    
    Dec. 31,2007
    
    
    2006Raw materials
    
    $
    96.1
    
    
    $
    73.6Work in process
    
    
    140.6
    
    
    
    94.9Finished goods
    
    
    404.4
    
    
    
    394.6Total
    
    $
    641.1
    
    
    $
    563.1
    5. Property, Plant and Equipment
   Sept. 28,
    
    
    Dec. 31,2007
    
    
    2006Land
    
    $
    48.2
    
    
    $
    39.1Buildings and leasehold improvements
    
    
    97.5
    
    
    
    76.0Machinery, equipment and office furnishings
    
    
    597.9
    
    
    
    518.4Construction in progress
    
    
    37.0
    
    
    
    19.5Total  gross book value
    
    
    780.6
    
    
    
    653.0Less accumulated depreciation
    
    
    (296.0
    )
    
    
    (236.3
    )Total  net book value
    
    $
    484.6
    
    
    $
    416.7
 8




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
   6. Goodwill and Other Intangible Assets
   7. Long-Term Debt
  Sept. 28,
    
    
    Dec. 31,2007
    
    
    20069.5% Senior Notes due 2010
    
    $
    4.8
    
    
    $
    285.07.125% Senior Notes due 2017
    
    
    200.0
    
    
    
    Senior Floating Rate Notes
    
    
    125.0
    
    
    
    0.875% Convertible Notes
    
    
    355.0
    
    
    
    355.0Spanish Term Loan
    
    
    33.6
    
    
    
    33.9Capital leases
    
    
    3.8
    
    
    
    4.3Other
    
    
    99.3
    
    
    
    62.4Total debt
    
    
    821.5
    
    
    
    740.6Less current maturities
    
    
    97.4
    
    
    
    55.5Long-term debt
    
    $
    724.1
    
    
    $
    685.1
  9.5% Senior Notes due 2010
    
    
    9.5
    %
    
    
    9.5
    %7.125% Senior Notes due 2017
    
    
    7.125
    %
    
    
    Senior Floating Rate Notes
    
    
    7.606
    %
    
    
    0.875% Convertible Notes
    
    
    0.875
    %
    
    
    0.875
    %Spanish Term Loan
    
    
    5.1
    %
    
    
    4.6
    %Capital leases
    
    
    6.5
    %
    
    
    6.5
    %Other
    
    
    4.5
    %
    
    
    3.8
    %
  9




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
      Senior Floating Rate Notes
    
    7.125% Senior NotesBeginning Date
    
    Percentage
    
    Beginning Date
    
    PercentageApril 1, 2009
    
    
    102.000
    %
    
    April 1, 2012
    
    
    103.563
    %April 1, 2010
    
    
    101.000
    %
    
    April 1, 2013
    
    
    102.375
    %April 1, 2011
    
    
    100.000
    %
    
    April 1, 2014
    
    
    101.188
    %April 1, 2015
    
    
    100.000
    %
   10




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
       11




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
         12




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
      8. Derivative and Other Financial Instruments
  Cash Flow Hedges
    13




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
   Net Investment Hedge
  Fair Value of Designated Derivatives
  Sept. 28, 2007
    
    
    Dec. 31, 2006Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.4
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Commodity futures
    
    
    163.2
    
    
    
    10.2
    
    
    
    217.6
    
    
    
    (10.8
    )Foreign currency forward exchange
    
    
    369.9
    
    
    
    (22.6
    )
    
    
    152.0
    
    
    
    (5.6
    )Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (27.7
    )
    
    
    150.0
    
    
    
    (14.3
    )$
    (40.5
    )
    
    
    
    
    
    $
    (31.1
    )
 Other Forward Pricing Agreements
  14




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  9. Income Taxes
     10. Employee Benefit Plans
  Defined Benefit Pension Plans
   15




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
   Employers Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for
Termination Benefits
  Three Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006U.S. Plans
    
    
    Non-U.S Plans
    
    
    U.S. Plans
    
    
    Non-U.S. PlansService cost
    
    $
    0.3
    
    
    $
    0.2
    
    
    $
    0.4
    
    
    $
    0.2Interest cost
    
    
    2.0
    
    
    
    0.5
    
    
    
    2.1
    
    
    
    0.5Expected return on plan assets
    
    
    (2.6
    )
    
    
    (0.5
    )
    
    
    (2.5
    )
    
    
    (0.3
    )Amortization of prior service cost
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.3
    
    
    
    Amortization of net loss
    
    
    0.6
    
    
    
    0.1
    
    
    
    0.7
    
    
    
    0.2Curtailment loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Settlement gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net pension expense (gain)
    
    $
    0.4
    
    
    $
    0.4
    
    
    $
    1.0
    
    
    $
    0.6
 Nine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006U.S. Plans
    
    
    Non-U.S Plans
    
    
    U.S. Plans
    
    
    Non-U.S. PlansService cost
    
    $
    1.3
    
    
    $
    0.6
    
    
    $
    1.4
    
    
    $
    0.7Interest cost
    
    
    6.3
    
    
    
    1.5
    
    
    
    6.6
    
    
    
    1.3Expected return on plan assets
    
    
    (7.8
    )
    
    
    (1.4
    )
    
    
    (7.3
    )
    
    
    (1.1
    )Amortization of prior service cost
    
    
    0.7
    
    
    
    0.1
    
    
    
    0.9
    
    
    
    0.1Amortization of net loss
    
    
    1.5
    
    
    
    0.4
    
    
    
    2.1
    
    
    
    0.3Curtailment loss
    
    
    3.2
    
    
    
    
    
    
    
    
    
    
    
    Settlement gain
    
    
    (4.3
    )
    
    
    
    
    
    
    
    
    
    
    Net pension expense
    
    $
    0.9
    
    
    $
    1.2
    
    
    $
    3.7
    
    
    $
    1.3
  Postretirement Benefits Other Than Pensions
  16




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  Three Fiscal Months Ended
    
    
    Nine Fiscal Months EndedSept. 28,
    
    
    Sept. 29,
    
    
    Sept. 28,
    
    
    Sept. 29,2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    
    
    
    $
    
    
    
    $
    0.1
    
    
    $
    0.1Interest cost
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.4
    
    
    
    0.5Net amortization and deferral
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.2
    
    
    
    0.2Net postretirement benefit expense
    
    $
    0.3
    
    
    $
    0.3
    
    
    $
    0.7
    
    
    $
    0.8
 Defined Contribution Plans
  11. Shareholders Equity
    Accounting for Certain Investments in Debt and Equity
Securities
  17




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
    Sept. 28,
    
    
    Dec. 31,2007
    
    
    2006Foreign currency translation adjustment
    
    $
    83.6
    
    
    $
    44.8Pension adjustments, net of tax
    
    
    (27.0
    )
    
    
    (27.0
    )Change in fair value of derivatives, net of tax
    
    
    (26.9
    )
    
    
    (20.2
    )Unrealized investment gains, net of tax
    
    
    8.0
    
    
    
    6.4Adoption of SFAS 158, net of tax
    
    
    (7.0
    )
    
    
    (7.0
    )Other
    
    
    1.5
    
    
    
    0.4Total
    
    $
    32.2
    
    
    $
    (2.6
    )
  Three Fiscal Months Ended
    
    
    Nine Fiscal Months EndedSept. 28,
    
    
    Sept. 29,
    
    
    Sept. 28,
    
    
    Sept. 29,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    61.2
    
    
    $
    37.1
    
    
    $
    162.0
    
    
    $
    100.0Currency translation gain
    
    
    23.7
    
    
    
    1.1
    
    
    
    38.8
    
    
    
    13.1Change in fair value of derivatives, net of tax
    
    
    (13.0
    )
    
    
    (6.0
    )
    
    
    (6.7
    )
    
    
    (1.9
    )Unrealized investment gain, net of tax
    
    
    (0.3
    )
    
    
    0.4
    
    
    
    1.6
    
    
    
    2.6Comprehensive net income
    
    $
    71.6
    
    
    $
    32.6
    
    
    $
    195.7
    
    
    $
    113.8
 12. Share-Based Compensation
   18




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
    13. Shipping and Handling Costs
  19




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 14. Earnings Per Common Share
  Three Fiscal Months Ended
    
    
    Nine Fiscal Months EndedSept. 28,
    
    
    Sept. 29,
    
    
    Sept. 28,
    
    
    Sept. 29,2007
    
    
    2006
    
    
    2007
    
    
    2006Earnings per common share  basic:Net income
    
    $
    61.2
    
    
    $
    37.1
    
    
    $
    162.0
    
    
    $
    100.0Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.3
    )
    
    
    (0.3
    )Net income for basic EPS computation (1)
    
    $
    61.1
    
    
    $
    37.0
    
    
    $
    161.7
    
    
    $
    99.7Weighted average shares outstanding for basic EPS
computation (2)
    
    
    51.3
    
    
    
    50.3
    
    
    
    51.1
    
    
    
    49.8Earnings per common share  basic
    
    $
    1.19
    
    
    $
    0.74
    
    
    $
    3.16
    
    
    $
    2.00Earnings per common share  assuming dilution:Net income
    
    $
    61.2
    
    
    $
    37.1
    
    
    $
    162.0
    
    
    $
    100.0Less: preferred stock dividends, if applicable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income for diluted EPS computation(1)
    
    $
    61.2
    
    
    $
    37.1
    
    
    $
    162.0
    
    
    $
    100.0Weighted average shares outstanding including
nonvested shares
    
    
    52.3
    
    
    
    51.3
    
    
    
    52.2
    
    
    
    50.8Dilutive effect of stock options and restricted stock
units
    
    
    0.4
    
    
    
    0.8
    
    
    
    0.4
    
    
    
    0.6Dilutive effect of convertible notes
    
    
    1.8
    
    
    
    
    
    
    
    1.1
    
    
    
    Dilutive effect of assumed conversion of preferred
stock
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5Weighted average shares outstanding for diluted EPS
computation(2)
    
    
    55.0
    
    
    
    52.6
    
    
    
    54.2
    
    
    
    51.9Earnings per common share  assuming dilution
    
    $
    1.11
    
    
    $
    0.71
    
    
    $
    2.99
    
    
    $
    1.93
 
 (1)
    
    Numerator(2)
    
    Denominator Earnings per Share
 20




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  Total Treasury
    
    
    
    
    
    Incremental SharesMethod
    
    Shares Due to the
    
    Issued by theShare
    
    Shares Underlying 0.875%
    
    Warrant
    
    Incremental
    
    Company under
    
    Company uponPrice
    
    Convertible Notes
    
    Shares
    
    Shares(1)
    
    Note Hedges
    
    Conversion(2)$  50.36
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    $  60.36
    
    1,167,502
    
    
    
    
    
    
    1,167,502
    
    
    
    (1,167,502
    )
    
    
    $  70.36
    
    2,003,400
    
    
    
    
    
    
    2,003,400
    
    
    
    (2,003,400
    )
    
    
    $  80.36
    
    2,631,259
    
    
    382,618
    
    
    
    3,013,877
    
    
    
    (2,631,259
    )
    
    
    382,618$  90.36
    
    3,120,150
    
    
    1,120,363
    
    
    
    4,240,513
    
    
    
    (3,120,150
    )
    
    
    1,120,363$100.36
    
    3,511,614
    
    
    1,711,088
    
    
    
    5,222,702
    
    
    
    (3,511,614
    )
    
    
    1,711,088
 
 (1)
    
    Represents the number of incremental shares that must be included in the calculation
of fully diluted shares under U.S. GAAP.(2)
    
    Represents the number of incremental shares to be issued by the Company upon
conversion of the 0.875% Convertible Notes, assuming concurrent settlement of the note hedges
and warrants. 15. Segment Information
   Disclosures about Segments of an Enterprise
and Related Information
 21




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Operating Segments
    
    Reportable SegmentsNorth American Utility
    
    North American Electric UtilityEuropean Utility
    
    International Electric UtilityAsia-Pacific Utility
    
    International Electric UtilityPortable Cord & Electronics
    
    North American Portable Power and ControlIndustrial Products
    
    North American Electrical InfrastructureEuropean Industrial & Specialty Cables
    
    International Electrical InfrastructureAsia-Pacific Industrial & Specialty Cables
    
    International Electrical InfrastructureSpecialty Wire Harnesses
    
    Transportation and Industrial HarnessesTelecommunications
    
    TelecommunicationsDatacom Products
    
    NetworkingEuropean Communications
    
    NetworkingAsia-Pacific Communications
    
    Networking
    Three Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Net sales:North American Electric Utility
    
    $
    215.5
    
    
    $
    200.3International Electric Utility
    
    
    222.2
    
    
    
    155.7North American Portable Power and Control
    
    
    88.1
    
    
    
    75.0North American Electrical Infrastructure
    
    
    111.3
    
    
    
    82.6International Electrical Infrastructure
    
    
    271.6
    
    
    
    225.3Transportation and Industrial Harnesses
    
    
    36.3
    
    
    
    28.6Telecommunications
    
    
    75.1
    
    
    
    95.3Networking
    
    
    115.2
    
    
    
    85.6Total net sales
    
    $
    1,135.3
    
    
    $
    948.4
 Three Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Operating income:North American Electric Utility
    
    $
    19.6
    
    
    $
    14.9International Electric Utility
    
    
    20.8
    
    
    
    14.3North American Portable Power and Control
    
    
    6.7
    
    
    
    6.5North American Electrical Infrastructure
    
    
    12.4
    
    
    
    4.6International Electrical Infrastructure
    
    
    15.3
    
    
    
    15.0Transportation and Industrial Harnesses
    
    
    4.9
    
    
    
    3.9Telecommunications
    
    
    3.4
    
    
    
    5.1Networking
    
    
    9.2
    
    
    
    1.5Total operating income
    
    $
    92.3
    
    
    $
    65.8
 22




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Nine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Net sales:North American Electric Utility
    
    $
    659.9
    
    
    $
    589.1International Electric Utility
    
    
    624.4
    
    
    
    426.5North American Portable Power and Control
    
    
    256.8
    
    
    
    225.6North American Electrical Infrastructure
    
    
    307.3
    
    
    
    238.6International Electrical Infrastructure
    
    
    810.3
    
    
    
    656.7Transportation and Industrial Harnesses
    
    
    107.1
    
    
    
    87.9Telecommunications
    
    
    241.1
    
    
    
    281.6Networking
    
    
    310.1
    
    
    
    233.8Total net sales
    
    $
    3,317.0
    
    
    $
    2,739.8
 Nine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Operating income:North American Electric Utility
    
    $
    67.0
    
    
    $
    35.2International Electric Utility
    
    
    60.4
    
    
    
    37.7North American Portable Power and Control
    
    
    17.6
    
    
    
    17.0North American Electrical Infrastructure
    
    
    30.6
    
    
    
    9.2International Electrical Infrastructure
    
    
    61.5
    
    
    
    42.9Transportation and Industrial Harnesses
    
    
    15.2
    
    
    
    11.6Telecommunications
    
    
    13.7
    
    
    
    23.6Networking
    
    
    20.4
    
    
    
    1.2Total operating income
    
    $
    286.4
    
    
    $
    178.4
 As ofSept. 28, 2007
    
    
    Dec. 31, 2006Identifiable assets:North American Electric Utility
    
    $
    260.0
    
    
    $
    214.7International Electric Utility
    
    
    603.0
    
    
    
    436.5North American Portable Power and Control
    
    
    146.9
    
    
    
    125.4North American Electrical Infrastructure
    
    
    141.1
    
    
    
    106.3International Electrical Infrastructure
    
    
    697.5
    
    
    
    505.0Transportation and Industrial Harnesses
    
    
    67.9
    
    
    
    55.1Telecommunications
    
    
    159.9
    
    
    
    147.1Networking
    
    
    276.8
    
    
    
    218.5Corporate
    
    
    451.1
    
    
    
    410.1Total assets
    
    $
    2,804.2
    
    
    $
    2,218.7
 16. Commitments and Contingencies
    23




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
        
 17. Supplemental Guarantor Information
  24




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  Condensed Statements of Operations
Three Fiscal Months Ended September 28, 2007
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    479.8
    
    
    $
    655.5
    
    
    $
    
    
    
    $
    1,135.3Intercompany
    
    
    13.2
    
    
    
    
    
    
    
    
    
    
    
    (13.2
    )
    
    
    13.2
    
    
    
    479.8
    
    
    
    655.5
    
    
    
    (13.2
    )
    
    
    1,135.3Cost of sales
    
    
    
    
    
    
    403.0
    
    
    
    568.8
    
    
    
    
    
    
    
    971.8Gross profit
    
    
    13.2
    
    
    
    76.8
    
    
    
    86.7
    
    
    
    (13.2
    )
    
    
    163.5Selling, general and administrative expenses
    
    
    10.8
    
    
    
    36.0
    
    
    
    37.6
    
    
    
    (13.2
    )
    
    
    71.2Operating income
    
    
    2.4
    
    
    
    40.8
    
    
    
    49.1
    
    
    
    
    
    
    
    92.3Other income (expense)
    
    
    
    
    
    
    0.1
    
    
    
    (1.4
    )
    
    
    
    
    
    
    (1.3
    )Interest income (expense):Interest expense
    
    
    (7.2
    )
    
    
    (14.6
    )
    
    
    (3.4
    )
    
    
    15.0
    
    
    
    (10.2
    )Interest income
    
    
    17.3
    
    
    
    0.3
    
    
    
    2.5
    
    
    
    (15.0
    )
    
    
    5.110.1
    
    
    
    (14.3
    )
    
    
    (0.9
    )
    
    
    
    
    
    
    (5.1
    )Income before income taxes
    
    
    12.5
    
    
    
    26.6
    
    
    
    46.8
    
    
    
    
    
    
    
    85.9Income tax provision
    
    
    (4.5
    )
    
    
    (7.7
    )
    
    
    (12.5
    )
    
    
    
    
    
    
    (24.7
    )Equity in net income of subsidiaries
    
    
    53.2
    
    
    
    34.3
    
    
    
    
    
    
    
    (87.5
    )
    
    
    Net income
    
    
    61.2
    
    
    
    53.2
    
    
    
    34.3
    
    
    
    (87.5
    )
    
    
    61.2Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    61.1
    
    
    $
    53.2
    
    
    $
    34.3
    
    
    $
    (87.5
    )
    
    $
    61.1
 Condensed Statements of Operations
Nine Fiscal Months Ended September 28, 2007
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    1,424.6
    
    
    $
    1,892.4
    
    
    $
    
    
    
    $
    3,317.0Intercompany
    
    
    35.8
    
    
    
    
    
    
    
    
    
    
    
    (35.8
    )
    
    
    35.8
    
    
    
    1,424.6
    
    
    
    1,892.4
    
    
    
    (35.8
    )
    
    
    3,317.0Cost of sales
    
    
    
    
    
    
    1,192.5
    
    
    
    1,628.1
    
    
    
    
    
    
    
    2,820.6Gross profit
    
    
    35.8
    
    
    
    232.1
    
    
    
    264.3
    
    
    
    (35.8
    )
    
    
    496.4Selling, general and administrative expenses
    
    
    33.9
    
    
    
    99.5
    
    
    
    112.4
    
    
    
    (35.8
    )
    
    
    210.0Operating income (loss)
    
    
    1.9
    
    
    
    132.6
    
    
    
    151.9
    
    
    
    
    
    
    
    286.4Other income (expense)
    
    
    
    
    
    
    0.1
    
    
    
    (2.9
    )
    
    
    
    
    
    
    (2.8
    )Interest income (expense):Interest expense
    
    
    (22.8
    )
    
    
    (48.3
    )
    
    
    (9.3
    )
    
    
    50.7
    
    
    
    (29.7
    )Interest income
    
    
    56.0
    
    
    
    0.9
    
    
    
    5.8
    
    
    
    (50.7
    )
    
    
    12.0Loss on extinguishment of debt
    
    
    (25.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25.1
    )8.1
    
    
    
    (47.4
    )
    
    
    (3.5
    )
    
    
    
    
    
    
    (42.8
    )Income (loss) before income taxes
    
    
    10.0
    
    
    
    85.3
    
    
    
    145.5
    
    
    
    
    
    
    
    240.8Income tax (provision) benefit
    
    
    (3.6
    )
    
    
    (29.1
    )
    
    
    (46.1
    )
    
    
    
    
    
    
    (78.8
    )Equity in net income of subsidiaries
    
    
    155.6
    
    
    
    99.4
    
    
    
    
    
    
    
    (255.0
    )
    
    
    Net income
    
    
    162.0
    
    
    
    155.6
    
    
    
    99.4
    
    
    
    (255.0
    )
    
    
    162.0Less: preferred stock dividends
    
    
    (0.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )Net income applicable to common
shareholders
    
    $
    161.7
    
    
    $
    155.6
    
    
    $
    99.4
    
    
    $
    (255.0
    )
    
    $
    161.7
 25




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Operations
Three Fiscal Months Ended September 29, 2006
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    444.3
    
    
    $
    504.1
    
    
    $
    
    
    
    $
    948.4Intercompany
    
    
    11.0
    
    
    
    
    
    
    
    
    
    
    
    (11.0
    )
    
    
    11.0
    
    
    
    444.3
    
    
    
    504.1
    
    
    
    (11.0
    )
    
    
    948.4Cost of sales
    
    
    
    
    
    
    386.9
    
    
    
    439.5
    
    
    
    
    
    
    
    826.4Gross profit
    
    
    11.0
    
    
    
    57.4
    
    
    
    64.6
    
    
    
    (11.0
    )
    
    
    122.0Selling, general and administrative expenses
    
    
    13.8
    
    
    
    26.2
    
    
    
    27.2
    
    
    
    (11.0
    )
    
    
    56.2Operating income
    
    
    (2.8
    )
    
    
    31.2
    
    
    
    37.4
    
    
    
    
    
    
    
    65.8Other income
    
    
    
    
    
    
    
    
    
    
    (0.3
    )
    
    
    
    
    
    
    (0.3
    )Interest income (expense):Interest expense
    
    
    (4.8
    )
    
    
    (15.9
    )
    
    
    (2.0
    )
    
    
    14.4
    
    
    
    (8.3
    )Interest income
    
    
    13.4
    
    
    
    0.2
    
    
    
    1.5
    
    
    
    (14.4
    )
    
    
    0.78.6
    
    
    
    (15.7
    )
    
    
    (0.5
    )
    
    
    
    
    
    
    (7.6
    )Income before income taxes
    
    
    5.8
    
    
    
    15.5
    
    
    
    36.6
    
    
    
    
    
    
    
    57.9Income tax provision
    
    
    (2.1
    )
    
    
    (7.7
    )
    
    
    (11.0
    )
    
    
    
    
    
    
    (20.8
    )Equity in net income of subsidiaries
    
    
    33.4
    
    
    
    25.6
    
    
    
    
    
    
    
    (59.0
    )
    
    
    Net income
    
    
    37.1
    
    
    
    33.4
    
    
    
    25.6
    
    
    
    (59.0
    )
    
    
    37.1Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    37.0
    
    
    $
    33.4
    
    
    $
    25.6
    
    
    $
    (59.0
    )
    
    $
    37.0
 Condensed Statements of Operations
Nine Fiscal Months Ended September 29, 2006
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    1,299.5
    
    
    $
    1,440.3
    
    
    $
    
    
    
    $
    2,739.8Intercompany
    
    
    36.7
    
    
    
    
    
    
    
    
    
    
    
    (36.7
    )
    
    
    36.7
    
    
    
    1,299.5
    
    
    
    1,440.3
    
    
    
    (36.7
    )
    
    
    2,739.8Cost of sales
    
    
    
    
    
    
    1,128.5
    
    
    
    1,262.2
    
    
    
    
    
    
    
    2,390.7Gross profit
    
    
    36.7
    
    
    
    171.0
    
    
    
    178.1
    
    
    
    (36.7
    )
    
    
    349.1Selling, general and administrative expenses
    
    
    37.8
    
    
    
    90.8
    
    
    
    78.8
    
    
    
    (36.7
    )
    
    
    170.7Operating income
    
    
    (1.1
    )
    
    
    80.2
    
    
    
    99.3
    
    
    
    
    
    
    
    178.4Other income (expense)
    
    
    
    
    
    
    (0.1
    )
    
    
    0.8
    
    
    
    
    
    
    
    0.7Interest income (expense):Interest expense
    
    
    (20.0
    )
    
    
    (46.4
    )
    
    
    (5.5
    )
    
    
    41.2
    
    
    
    (30.7
    )Interest income
    
    
    38.7
    
    
    
    0.5
    
    
    
    3.9
    
    
    
    (41.2
    )
    
    
    1.918.7
    
    
    
    (45.9
    )
    
    
    (1.6
    )
    
    
    
    
    
    
    (28.8
    )Income before income taxes
    
    
    17.6
    
    
    
    34.2
    
    
    
    98.5
    
    
    
    
    
    
    
    150.3Income tax provision
    
    
    (6.2
    )
    
    
    (13.1
    )
    
    
    (31.0
    )
    
    
    
    
    
    
    (50.3
    )Equity in net income of subsidiaries
    
    
    88.6
    
    
    
    67.5
    
    
    
    
    
    
    
    (156.1
    )
    
    
    Net income
    
    
    100.0
    
    
    
    88.6
    
    
    
    67.5
    
    
    
    (156.1
    )
    
    
    100.0Less: preferred stock dividends
    
    
    (0.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )Net income applicable to common
shareholders
    
    $
    99.7
    
    
    $
    88.6
    
    
    $
    67.5
    
    
    $
    (156.1
    )
    
    $
    99.7
 26




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Balance Sheets
September 28, 2007
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash and cash equivalents
    
    $
    251.7
    
    
    $
    10.6
    
    
    $
    217.3
    
    
    $
    
    
    
    $
    479.6Receivables, net of allowances
    
    
    
    
    
    
    271.5
    
    
    
    681.1
    
    
    
    
    
    
    
    952.6Inventories
    
    
    
    
    
    
    255.0
    
    
    
    386.1
    
    
    
    
    
    
    
    641.1Deferred income taxes
    
    
    4.8
    
    
    
    95.0
    
    
    
    11.5
    
    
    
    
    
    
    
    111.3Prepaid expenses and other
    
    
    3.3
    
    
    
    30.0
    
    
    
    23.6
    
    
    
    
    
    
    
    56.9Total current assets
    
    
    259.8
    
    
    
    662.1
    
    
    
    1,319.6
    
    
    
    
    
    
    
    2,241.5Property, plant and equipment, net
    
    
    0.6
    
    
    
    161.6
    
    
    
    322.4
    
    
    
    
    
    
    
    484.6Deferred income taxes
    
    
    5.6
    
    
    
    15.3
    
    
    
    13.3
    
    
    
    
    
    
    
    34.2Intercompany accounts
    
    
    814.3
    
    
    
    100.0
    
    
    
    109.2
    
    
    
    (1,023.5
    )
    
    
    Investment in subsidiaries
    
    
    288.1
    
    
    
    525.6
    
    
    
    
    
    
    
    (813.7
    )
    
    
    Other non-current assets
    
    
    15.1
    
    
    
    23.7
    
    
    
    5.1
    
    
    
    
    
    
    
    43.9Total assets
    
    $
    1,383.5
    
    
    $
    1,488.3
    
    
    $
    1,769.6
    
    
    $
    (1,837.2
    )
    
    $
    2,804.2Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    180.8
    
    
    $
    605.0
    
    
    $
    
    
    
    $
    785.8Accrued liabilities
    
    
    18.8
    
    
    
    118.6
    
    
    
    257.4
    
    
    
    
    
    
    
    394.8Current portion of long-term debt
    
    
    
    
    
    
    0.9
    
    
    
    96.5
    
    
    
    
    
    
    
    97.4Total current liabilities
    
    
    18.8
    
    
    
    300.3
    
    
    
    958.9
    
    
    
    
    
    
    
    1,278.0Long-term debt
    
    
    684.8
    
    
    
    11.7
    
    
    
    27.6
    
    
    
    
    
    
    
    724.1Deferred income taxes
    
    
    
    
    
    
    0.9
    
    
    
    12.1
    
    
    
    
    
    
    
    13.0Intercompany accounts
    
    
    42.8
    
    
    
    806.0
    
    
    
    174.7
    
    
    
    (1,023.5
    )
    
    
    Other liabilities
    
    
    12.3
    
    
    
    81.3
    
    
    
    70.7
    
    
    
    
    
    
    
    164.3Total liabilities
    
    
    758.7
    
    
    
    1,200.2
    
    
    
    1,244.0
    
    
    
    (1,023.5
    )
    
    
    2,179.4Total shareholders equity
    
    
    624.8
    
    
    
    288.1
    
    
    
    525.6
    
    
    
    (813.7
    )
    
    
    624.8Total liabilities and shareholders equity
    
    $
    1,383.5
    
    
    $
    1,488.3
    
    
    $
    1,769.6
    
    
    $
    (1,837.2
    )
    
    $
    2,804.2
 27




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Balance Sheets
December 31, 2006
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash and cash equivalents
    
    $
    197.7
    
    
    $
    8.8
    
    
    $
    104.0
    
    
    $
    
    
    
    $
    310.5Receivables, net of allowances
    
    
    
    
    
    
    206.0
    
    
    
    517.7
    
    
    
    
    
    
    
    723.7Inventories
    
    
    
    
    
    
    257.6
    
    
    
    305.5
    
    
    
    
    
    
    
    563.1Deferred income taxes
    
    
    4.8
    
    
    
    86.7
    
    
    
    12.6
    
    
    
    
    
    
    
    104.1Prepaid expenses and other
    
    
    3.5
    
    
    
    17.9
    
    
    
    11.5
    
    
    
    
    
    
    
    32.9Total current assets
    
    
    206.0
    
    
    
    577.0
    
    
    
    951.3
    
    
    
    
    
    
    
    1,734.3Property, plant and equipment, net
    
    
    0.7
    
    
    
    163.7
    
    
    
    252.3
    
    
    
    
    
    
    
    416.7Deferred income taxes
    
    
    
    
    
    
    16.4
    
    
    
    12.4
    
    
    
    
    
    
    
    28.8Intercompany accounts
    
    
    798.1
    
    
    
    82.4
    
    
    
    106.3
    
    
    
    (986.8
    )
    
    
    Investment in subsidiaries
    
    
    124.4
    
    
    
    386.8
    
    
    
    
    
    
    
    (511.2
    )
    
    
    Other non-current assets
    
    
    13.8
    
    
    
    20.8
    
    
    
    4.3
    
    
    
    
    
    
    
    38.9Total assets
    
    $
    1,143.0
    
    
    $
    1,247.1
    
    
    $
    1,326.6
    
    
    $
    (1,498.0
    )
    
    $
    2,218.7Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    172.4
    
    
    $
    483.0
    
    
    $
    
    
    
    $
    655.4Accrued liabilities
    
    
    17.8
    
    
    
    100.2
    
    
    
    166.3
    
    
    
    
    
    
    
    284.3Current portion of long-term debt
    
    
    
    
    
    
    1.0
    
    
    
    54.5
    
    
    
    
    
    
    
    55.5Total current liabilities
    
    
    17.8
    
    
    
    273.6
    
    
    
    703.8
    
    
    
    
    
    
    
    995.2Long-term debt
    
    
    640.0
    
    
    
    12.1
    
    
    
    33.0
    
    
    
    
    
    
    
    685.1Deferred income taxes
    
    
    
    
    
    
    
    
    
    
    13.2
    
    
    
    
    
    
    
    13.2Intercompany accounts
    
    
    38.5
    
    
    
    782.4
    
    
    
    165.9
    
    
    
    (986.8
    )
    
    
    Other liabilities
    
    
    12.3
    
    
    
    54.6
    
    
    
    23.9
    
    
    
    
    
    
    
    90.8Total liabilities
    
    
    708.6
    
    
    
    1,122.7
    
    
    
    939.8
    
    
    
    (986.8
    )
    
    
    1,784.3Total shareholders equity
    
    
    434.4
    
    
    
    124.4
    
    
    
    386.8
    
    
    
    (511.2
    )
    
    
    434.4Total liabilities and shareholders equity
    
    $
    1,143.0
    
    
    $
    1,247.1
    
    
    $
    1,326.6
    
    
    $
    (1,498.0
    )
    
    $
    2,218.7
 28




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Cash Flows
Nine Fiscal Months Ended September 28, 2007
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    11.0
    
    
    $
    19.9
    
    
    $
    120.9
    
    
    $
    
    
    
    $
    151.8Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (18.4
    )
    
    
    (55.5
    )
    
    
    
    
    
    
    (73.9
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    0.7
    
    
    
    
    
    
    
    0.8Proceeds from acquisitions including
cash
acquired
    
    
    
    
    
    
    
    
    
    
    28.0
    
    
    
    
    
    
    
    28.0Acquisitions, net of cash acquired
    
    
    
    
    
    
    
    
    
    
    (9.9
    )
    
    
    
    
    
    
    (9.9
    )Intercompany accounts
    
    
    9.7
    
    
    
    
    
    
    
    
    
    
    
    (9.7
    )
    
    
    Other, net
    
    
    
    
    
    
    1.7
    
    
    
    
    
    
    
    
    
    
    
    1.7Net cash flows of investing activities
    
    
    9.7
    
    
    
    (16.6
    )
    
    
    (36.7
    )
    
    
    (9.7
    )
    
    
    (53.3
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )Excess tax benefits from stock-based
compensation
    
    
    10.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    10.4Intercompany accounts
    
    
    
    
    
    
    (0.9
    )
    
    
    (8.8
    )
    
    
    9.7
    
    
    
    Proceeds
from revolving credit borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Repayments of revolving credit borrowings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Issuance of long-term debt, net of
fees and
expenses
    
    
    318.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    318.3Repayments of long-term debt,
including fees and expenses
    
    
    (300.6
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (300.6
    )Proceeds (repayments) of other debt
    
    
    
    
    
    
    (0.6
    )
    
    
    27.3
    
    
    
    
    
    
    
    26.7Proceeds from exercise of stock options
    
    
    5.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.5Net cash flows of financing activities
    
    
    33.3
    
    
    
    (1.5
    )
    
    
    18.5
    
    
    
    9.7
    
    
    
    60.0Effect of exchange rate changes on cash
and cash equivalents
    
    
    
    
    
    
    
    
    
    
    10.6
    
    
    
    
    
    
    
    10.6Increase (decrease) in cash and cash
equivalents
    
    
    54.0
    
    
    
    1.8
    
    
    
    113.3
    
    
    
    
    
    
    
    169.1Cash and cash equivalents  beginning of
period
    
    
    197.7
    
    
    
    8.8
    
    
    
    104.0
    
    
    
    
    
    
    
    310.5Cash and cash equivalents  end of period
    
    $
    251.7
    
    
    $
    10.6
    
    
    $
    217.3
    
    
    $
    
    
    
    $
    479.6
 29




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Cash Flows
Nine Fiscal Months Ended September 29, 2006
 Guarantor
    
    
    Non-GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    31.7
    
    
    $
    (9.5
    )
    
    $
    71.9
    
    
    $
    
    
    
    $
    94.1Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (11.0
    )
    
    
    (35.5
    )
    
    
    
    
    
    
    (46.5
    )Acquisitions, net of cash acquired
    
    
    
    
    
    
    0.1
    
    
    
    0.4
    
    
    
    
    
    
    
    0.5Proceeds from properties sold
    
    
    
    
    
    
    
    
    
    
    (28.1
    )
    
    
    
    
    
    
    (28.1
    )Intercompany accounts
    
    
    (60.4
    )
    
    
    
    
    
    
    
    
    
    
    60.4
    
    
    
    Other, net
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    
    
    
    
    0.6Net cash flows of investing activities
    
    
    (60.4
    )
    
    
    (10.3
    )
    
    
    (63.2
    )
    
    
    60.4
    
    
    
    (73.5
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.3
    )Excess tax benefits from stock-based
compensation
    
    
    11.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    11.4Intercompany accounts
    
    
    
    
    
    
    73.2
    
    
    
    (12.8
    )
    
    
    (60.4
    )
    
    
    Proceeds from revolving credit
borrowings
    
    
    
    
    
    
    144.5
    
    
    
    
    
    
    
    
    
    
    
    144.5Repayments of revolving credit
borrowings
    
    
    
    
    
    
    (198.3
    )
    
    
    
    
    
    
    
    
    
    
    (198.3
    )Proceeds (repayments) of other debt
    
    
    
    
    
    
    (0.6
    )
    
    
    11.0
    
    
    
    
    
    
    
    10.4Proceeds from exercise of stock
options
    
    
    17.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    17.7Net cash flows of financing activities
    
    
    28.8
    
    
    
    18.8
    
    
    
    (1.8
    )
    
    
    (60.4
    )
    
    
    (14.6
    )Effect of exchange rate changes on cash
and cash equivalents
    
    
    
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    2.2Increase (decrease) in cash and cash
equivalents
    
    
    0.1
    
    
    
    (1.0
    )
    
    
    9.1
    
    
    
    
    
    
    
    8.2Cash and cash equivalents  beginning
of period
    
    
    
    
    
    
    8.5
    
    
    
    63.7
    
    
    
    
    
    
    
    72.2Cash and cash equivalents  end of
period
    
    $
    0.1
    
    
    $
    7.5
    
    
    $
    72.8
    
    
    $
    
    
    
    $
    80.4
 18. Subsequent Events
     30




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
  Overview
     Three Fiscal Months Ended
    
    
    Nine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006
    
    
    Sept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Net sales:North America
    
    $
    583.3
    
    
    
    51
    %
    
    $
    535.8
    
    
    
    56
    %
    
    $
    1,743.6
    
    
    
    53
    %
    
    $
    1,579.5
    
    
    
    58
    %International
    
    
    552.0
    
    
    
    49
    %
    
    
    412.6
    
    
    
    44
    %
    
    
    1,573.4
    
    
    
    47
    %
    
    
    1,160.3
    
    
    
    42
    %Total net sales
    
    $
    1,135.3
    
    
    
    100
    %
    


    $
    948.4
    
    
    
    100
    %
    
    $
    3,317.0
    
    
    
    100
    %
    
    $
    2,739.8
    
    
    
    100
    %Operating income:North America
    
    $
    51.1
    
    
    
    55
    %
    
    $
    36.4
    
    
    
    55
    %
    
    $
    155.0
    
    
    
    54
    %
    
    $
    98.7
    
    
    
    55
    %International
    
    
    41.2
    
    
    
    45
    %
    
    
    29.4
    
    
    
    45
    %
    
    
    131.4
    
    
    
    46
    %
    
    
    79.7
    
    
    
    45
    %Total operating income
    
    $
    92.3
    
    
    
    100
    %
    
    $
    65.8
    
    
    
    100
    %
    
    $
    286.4
    
    
    
    100
    %
    
    $
    178.4
    
    
    
    100
    %
  31




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##### Table of Contents



Current Business Environment
   
    
    Worldwide underlying growth trends in energy and industrial infrastructure markets;
    
    Softness in demand for low-voltage utility products in North America;
    
    Increasing demand for natural resources, such as oil and gas, and alternative energy
initiatives; and
    
    Factory utilization increases industry-wide that are driving higher selling prices and
margin improvements.
   32




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33




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##### Table of Contents



Acquisitions and Divestitures
    As ofApril 30, 2007Cash
    
    $
    12.3Accounts receivable
    
    
    27.3Inventories
    
    
    27.4Property, plant and equipment
    
    
    0.9Other current and noncurrent assets
    
    
    1.6Total assets
    
    $
    69.5Current liabilities
    
    $
    38.2Other liabilities
    
    
    0.4Pension liabilities
    
    
    41.9Total liabilities
    
    $
    80.5
  34




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##### Table of Contents



Critical Accounting Policies and Estimates
  New Accounting Standards
 Definition of Settlement in FASB Interpretation
No. 48
 The Fair Value Option for Financial Assets and Financial
Liabilities  Including an Amendment of FASB Statement No. 115
 35




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##### Table of Contents



Fair Value Measurements
 Results of Operations
  Three Fiscal Months Ended
    
    Nine Fiscal Months EndedSept. 28, 2007
    
    Sept. 29, 2006
    
    Sept. 28, 2007
    
    Sept. 29, 2006Amount
    
    %
    
    Amount
    
    %
    
    Amount
    
    %
    
    Amount
    
    %Net sales
    
    $
    1,135.3
    
    
    
    100.0
    %
    
    $
    948.4
    
    
    
    100.0
    %
    
    $
    3,317.0
    
    
    
    100.0
    %
    
    $
    2,739.8
    
    
    
    100.0
    %Cost of sales
    
    
    971.8
    
    
    
    85.6
    %
    
    
    826.4
    
    
    
    87.1
    %
    
    
    2,820.6
    
    
    
    85.0
    %
    
    
    2,390.7
    
    
    
    87.3
    %Gross profit
    
    
    163.5
    
    
    
    14.4
    %
    
    
    122.0
    
    
    
    12.9
    %
    
    
    496.4
    
    
    
    15.0
    %
    
    
    349.1
    
    
    
    12.7
    %Selling, general and
administrative
expenses
    
    
    71.2
    
    
    
    6.3
    %
    
    
    56.2
    
    
    
    5.9
    %
    
    
    210.0
    
    
    
    6.3
    %
    
    
    170.7
    
    
    
    6.2
    %Operating income
    
    
    92.3
    
    
    
    8.1
    %
    
    
    65.8
    
    
    
    6.9
    %
    
    
    286.4
    
    
    
    8.6
    %
    
    
    178.4
    
    
    
    6.5
    %Other income (expense)
    
    
    (1.3
    )
    
    
    (0.1
    )%
    
    
    (0.3
    )
    
    
    
    %
    
    
    (2.8
    )
    
    
    (0.1
    )%
    
    
    0.7
    
    
    
    -
    %Interest expense, net
    
    
    (5.1
    )
    
    
    (0.4
    )%
    
    
    (7.6
    )
    
    
    (0.8
    )%
    
    
    (17.7
    )
    
    
    (0.5
    )%
    
    
    (28.8
    )
    
    
    (1.1
    )%Loss on
extinguishment of
debt
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    (25.1
    )
    
    
    (0.8
    )%
    
    
    
    
    
    
    -
    %Income before income
taxes
    
    
    85.9
    
    
    
    7.6
    %
    
    
    57.9
    
    
    
    6.1
    %
    
    
    240.8
    
    
    
    7.3
    %
    
    
    150.3
    
    
    
    5.5
    %Income tax provision
    
    
    (24.7
    )
    
    
    (2.2
    )%
    
    
    (20.8
    )
    
    
    (2.2
    )%
    
    
    (78.8
    )
    
    
    (2.4
    )%
    
    
    (50.3
    )
    
    
    (1.8
    )%Net income
    
    
    61.2
    
    
    
    5.4
    %
    
    
    37.1
    
    
    
    3.9
    %
    
    
    162.0
    
    
    
    4.9
    %
    
    
    100.0
    
    
    
    3.6
    %Less: preferred stock
dividends
    
    
    (0.1
    )
    
    
    
    %
    
    
    (0.1
    )
    
    
    
    %
    
    
    (0.3
    )
    
    
    
    %
    
    
    (0.3
    )
    
    
    -
    %Net income applicable
to
common shareholders
    
    $
    61.1
    
    
    
    5.4
    %
    
    $
    37.0
    
    
    
    3.9
    %
    
    $
    161.7
    
    
    
    4.9
    %
    
    $
    99.7
    
    
    
    3.6
    %
 Three Fiscal Months Ended September 28, 2007 Compared with Three Fiscal Months Ended September 29,
2006
  36




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##### Table of Contents



Net Sales
  Net SalesThree Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    215.5
    
    
    
    19
    %
    
    $
    200.3
    
    
    
    21
    %International Electric Utility
    
    
    222.2
    
    
    
    20
    %
    
    
    155.7
    
    
    
    16
    %North American Portable Power and Control
    
    
    88.1
    
    
    
    8
    %
    
    
    75.0
    
    
    
    8
    %North American Electrical Infrastructure
    
    
    111.3
    
    
    
    10
    %
    
    
    82.6
    
    
    
    9
    %International Electrical Infrastructure
    
    
    271.6
    
    
    
    24
    %
    
    
    225.3
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    36.3
    
    
    
    3
    %
    
    
    28.6
    
    
    
    3
    %Telecommunications
    
    
    75.1
    
    
    
    6
    %
    
    
    95.3
    
    
    
    10
    %Networking
    
    
    115.2
    
    
    
    10
    %
    
    
    85.6
    
    
    
    9
    %Total net sales
    
    $
    1,135.3
    
    
    
    100
    %
    
    $
    948.4
    
    
    
    100
    %
 Metal-Adjusted Net SalesThree Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    215.5
    
    
    
    19
    %
    
    $
    200.0
    
    
    
    21
    %International Electric Utility
    
    
    222.2
    
    
    
    20
    %
    
    
    156.0
    
    
    
    16
    %North American Portable Power and Control
    
    
    88.1
    
    
    
    8
    %
    
    
    74.2
    
    
    
    8
    %North American Electrical Infrastructure
    
    
    111.3
    
    
    
    10
    %
    
    
    81.6
    
    
    
    9
    %International Electrical Infrastructure
    
    
    271.6
    
    
    
    24
    %
    
    
    222.2
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    36.3
    
    
    
    3
    %
    
    
    28.6
    
    
    
    3
    %Telecommunications
    
    
    75.1
    
    
    
    6
    %
    
    
    93.7
    
    
    
    10
    %Networking
    
    
    115.2
    
    
    
    10
    %
    
    
    85.0
    
    
    
    9
    %Total metal-adjusted net sales
    
    $
    1,135.3
    
    
    
    100
    %
    
    $
    941.3
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    7.1Total net sales
    
    $
    1,135.3
    
    
    
    
    
    
    $
    948.4
 Metal Pounds SoldThree Fiscal Months EndedSept. 28, 2007
    
    Sept. 29, 2006Pounds
    
    %
    
    Pounds
    
    %North American Electric Utility
    
    
    52.8
    
    
    
    28
    %
    
    
    54.7
    
    
    
    30
    %International Electric Utility
    
    
    49.5
    
    
    
    26
    %
    
    
    32.2
    
    
    
    18
    %North American Portable Power and Control
    
    
    12.5
    
    
    
    7
    %
    
    
    10.2
    
    
    
    6
    %North American Electrical Infrastructure
    
    
    16.1
    
    
    
    8
    %
    
    
    12.8
    
    
    
    7
    %International Electrical Infrastructure
    
    
    36.7
    
    
    
    19
    %
    
    
    40.9
    
    
    
    23
    %Transportation and Industrial Harnesses
    
    
    0.2
    
    
    
    
    
    
    
    0.3
    
    
    
    -Telecommunications
    
    
    15.6
    
    
    
    8
    %
    
    
    20.3
    
    
    
    11
    %Networking
    
    
    8.3
    
    
    
    4
    %
    
    
    9.0
    
    
    
    5
    %Total metal pounds sold
    
    
    191.7
    
    
    
    100
    %
    
    
    180.4
    
    
    
    100
    %
  37




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38




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##### Table of Contents



Gross Profit
  Selling, General and Administrative Expense
  Operating Income
  Operating IncomeThree Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    19.6
    
    
    
    21
    %
    
    $
    14.9
    
    
    
    22
    %International Electric Utility
    
    
    20.8
    
    
    
    23
    %
    
    
    14.3
    
    
    
    22
    %North American Portable Power and Control
    
    
    6.7
    
    
    
    7
    %
    
    
    6.5
    
    
    
    10
    %North American Electrical Infrastructure
    
    
    12.4
    
    
    
    13
    %
    
    
    4.6
    
    
    
    7
    %International Electrical Infrastructure
    
    
    15.3
    
    
    
    17
    %
    
    
    15.0
    
    
    
    23
    %Transportation and Industrial Harnesses
    
    
    4.9
    
    
    
    5
    %
    
    
    3.9
    
    
    
    6
    %Telecommunications
    
    
    3.4
    
    
    
    4
    %
    
    
    5.1
    
    
    
    8
    %Networking
    
    
    9.2
    
    
    
    10
    %
    
    
    1.5
    
    
    
    2
    %Total operating income
    
    $
    92.3
    
    
    
    100
    %
    
    $
    65.8
    
    
    
    100
    %
   39




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##### Table of Contents



Other Income (Expense)
  Interest Expense
  Tax Provision
  Preferred Stock Dividends
  Nine Fiscal Months Ended September 28, 2007 Compared with Nine Fiscal Months Ended September 29,
2006
  40




---



##### Table of Contents



Net Sales
  Net SalesNine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    659.9
    
    
    
    20
    %
    
    $
    589.1
    
    
    
    22
    %International Electric Utility
    
    
    624.4
    
    
    
    19
    %
    
    
    426.5
    
    
    
    16
    %North American Portable Power and Control
    
    
    256.8
    
    
    
    8
    %
    
    
    225.6
    
    
    
    8
    %North American Electrical Infrastructure
    
    
    307.3
    
    
    
    9
    %
    
    
    238.6
    
    
    
    9
    %International Electrical Infrastructure
    
    
    810.3
    
    
    
    25
    %
    
    
    656.7
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    107.1
    
    
    
    3
    %
    
    
    87.9
    
    
    
    3
    %Telecommunications
    
    
    241.1
    
    
    
    7
    %
    
    
    281.6
    
    
    
    10
    %Networking
    
    
    310.1
    
    
    
    9
    %
    
    
    233.8
    
    
    
    8
    %Total net sales
    
    $
    3,317.0
    
    
    
    100
    %
    
    $
    2,739.8
    
    
    
    100
    %
 Metal-Adjusted Net SalesNine Fiscal Months EndedSept. 28, 2007
    
    
    Sept. 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    659.9
    
    
    
    20
    %
    
    $
    608.5
    
    
    
    22
    %International Electric Utility
    
    
    624.4
    
    
    
    19
    %
    
    
    436.4
    
    
    
    16
    %North American Portable Power and Control
    
    
    256.8
    
    
    
    8
    %
    
    
    230.9
    
    
    
    8
    %North American Electrical Infrastructure
    
    
    307.3
    
    
    
    9
    %
    
    
    245.2
    
    
    
    9
    %International Electrical Infrastructure
    
    
    810.3
    
    
    
    25
    %
    
    
    680.9
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    107.1
    
    
    
    3
    %
    
    
    88.0
    
    
    
    3
    %Telecommunications
    
    
    241.1
    
    
    
    7
    %
    
    
    291.7
    
    
    
    10
    %Networking
    
    
    310.1
    
    
    
    9
    %
    
    
    238.1
    
    
    
    8
    %Total metal-adjusted net sales
    
    $
    3,317.0
    
    
    
    100
    %
    
    $
    2,819.7
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (79.9
    )Total net sales
    
    $
    3,317.0
    
    
    
    
    
    
    $
    2,739.8
 Metal Pounds SoldNine Fiscal Months EndedSept. 28, 2007
    
    Sept. 29, 2006Pounds
    
    %
    
    Pounds
    
    %North American Electric Utility
    
    
    172.6
    
    
    
    29
    %
    
    
    175.8
    
    
    
    30
    %International Electric Utility
    
    
    146.9
    
    
    
    25
    %
    
    
    99.8
    
    
    
    17
    %North American Portable Power and Control
    
    
    37.6
    
    
    
    6
    %
    
    
    35.0
    
    
    
    6
    %North American Electrical Infrastructure
    
    
    46.4
    
    
    
    8
    %
    
    
    41.8
    
    
    
    7
    %International Electrical Infrastructure
    
    
    120.8
    
    
    
    20
    %
    
    
    146.2
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    0.7
    
    
    
    
    
    
    
    0.8
    
    
    
    -Telecommunications
    
    
    47.7
    
    
    
    8
    %
    
    
    66.3
    
    
    
    11
    %Networking
    
    
    25.4
    
    
    
    4
    %
    
    
    28.8
    
    
    
    5
    %Total metal pounds sold
    
    
    598.1
    
    
    
    100
    %
    
    
    594.5
    
    
    
    100
    %
  41




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42




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Gross Profit
  Selling, General and Administrative Expense
  Operating Income
  Operating IncomeNine Fiscal Months EndedSept 28, 2007
    
    
    Sept 29, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    67.0
    
    
    
    23
    %
    
    $
    35.2
    
    
    
    20
    %International Electric Utility
    
    
    60.4
    
    
    
    21
    %
    
    
    37.7
    
    
    
    21
    %North American Portable Power and Control
    
    
    17.6
    
    
    
    6
    %
    
    
    17.0
    
    
    
    10
    %North American Electrical Infrastructure
    
    
    30.6
    
    
    
    11
    %
    
    
    9.2
    
    
    
    5
    %International Electrical Infrastructure
    
    
    61.5
    
    
    
    22
    %
    
    
    42.9
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    15.2
    
    
    
    5
    %
    
    
    11.6
    
    
    
    6
    %Telecommunications
    
    
    13.7
    
    
    
    5
    %
    
    
    23.6
    
    
    
    13
    %Networking
    
    
    20.4
    
    
    
    7
    %
    
    
    1.2
    
    
    
    1
    %Total operating income
    
    $
    286.4
    
    
    
    100
    %
    
    $
    178.4
    
    
    
    100
    %
   43




---



##### Table of Contents



Other Income (Expense)
  Interest Expense
  Loss on Extinguishment of Debt
  Tax Provision
  Preferred Stock Dividends
  44




---



##### Table of Contents



Liquidity and Capital Resources
   Nine Fiscal Months EndedSept 28, 2007
    
    
    Sept 29, 2006Net Cash Flows of Operating Activities:North America
    
    $
    34.8
    
    
    $
    20.7International
    
    
    117.0
    
    
    
    73.4Total
    
    $
    151.8
    
    
    $
    94.1
 Summary of Cash Flows
    45




---



##### Table of Contents



Debt and Other Contractual Obligations
      Senior Floating Rate Notes
    
    7.125% Senior NotesBeginning Date
    
    Percentage
    
    Beginning Date
    
    PercentageApril 1, 2009
    
    102.000%
    
    April 1, 2012
    
    103.563%April 1, 2010
    
    101.000%
    
    April 1, 2013
    
    102.375%April 1, 2011
    
    100.000%
    
    April 1, 2014
    
    101.188%April 1, 2015
    
    100.000%
   46




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##### Table of Contents



47




---



##### Table of Contents




 
 48




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##### Table of Contents




      49




---



##### Table of Contents



Payments Due by PeriodLess than
    
    
    1 - 3
    
    
    4 - 5
    
    
    After 5Total
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    YearsContractual obligations(1):Total debt
    
    $
    821.5
    
    
    $
    97.4
    
    
    $
    14.4
    
    
    $
    17.6
    
    
    $
    692.1Interest payments on 9.5% Senior Notes
    
    
    1.6
    
    
    
    0.5
    
    
    
    1.0
    
    
    
    0.1
    
    
    
    Interest payments on 7.125% Senior Notes
    
    
    149.6
    
    
    
    14.2
    
    
    
    28.5
    
    
    
    28.5
    
    
    
    78.4Interest payments on Senior Floating Rate Notes
    
    
    83.2
    
    
    
    10.1
    
    
    
    20.2
    
    
    
    20.2
    
    
    
    32.7Interest payments on 0.875% Convertible Notes
    
    
    20.2
    
    
    
    3.1
    
    
    
    6.2
    
    
    
    6.2
    
    
    
    4.7Operating leases
    
    
    25.0
    
    
    
    4.5
    
    
    
    10.1
    
    
    
    6.1
    
    
    
    4.3Defined benefit pension obligations(2)
    
    
    7.0
    
    
    
    7.0
    
    
    
    
    
    
    
    
    
    
    
    Postretirement benefits
    
    
    12.4
    
    
    
    1.7
    
    
    
    3.2
    
    
    
    2.9
    
    
    
    4.6Commodity futures and forward pricing
agreements(3)
    
    
    274.5
    
    
    
    270.1
    
    
    
    4.4
    
    
    
    
    
    
    
    Foreign currency contracts(3)
    
    
    369.9
    
    
    
    296.0
    
    
    
    69.6
    
    
    
    4.3
    
    
    
    Cross currency and interest rate swap
    
    
    181.9
    
    
    
    181.9
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    1,946.8
    
    
    $
    886.5
    
    
    $
    157.6
    
    
    $
    85.9
    
    
    $
    816.8
 
 (1)
    
    This table does not include interest payments on some of General Cables variable
rate debt because the future amounts are based on variable interest rates and the amount of
the borrowings under the Amended Credit Facility and Spanish Credit Facility fluctuate
depending upon the Companys working capital requirements.(2)
    
    Defined benefit pension obligations reflect the Companys estimates of
contributions that will be required in 2007 to meet current law minimum funding
requirements. Amounts beyond one year have not been provided because they are not
determinable.(3)
    
    Information on these items is provided under Item 7A, Quantitative and
Qualitative Disclosures About Market Risk.   Off Balance Sheet Assets and Obligations
    50




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Environmental Matters
     
 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
  51




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##### Table of Contents



September 28, 2007
    
    
    December 31, 2006Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.4
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Foreign currency forward exchange
    
    
    369.9
    
    
    
    (22.6
    )
    
    
    152.0
    
    
    
    (5.6
    )Commodity futures
    
    
    163.2
    
    
    
    10.2
    
    
    
    217.6
    
    
    
    (10.8
    )Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (27.7
    )
    
    
    150.0
    
    
    
    (14.3
    )$
    (40.5
    )
    
    
    
    
    
    $
    (31.1
    )
 Other Forward Pricing Agreements
  
 ITEM 4. CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
 .
 .
 52




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##### Table of Contents



Changes in Internal Control over Financial Reporting
  
    
    In February 2007, a significant portion of Silecs financial systems were migrated
to the Companys existing European financial system. Silecs remaining systems are
expected to be migrated to independent systems, with appropriate controls in place, by
December 31, 2007.
    
    To ensure successful transition to a formal control structure and to address the
related internal control implementation issues, Silec has added several resources with
experience operating in a Sarbanes-Oxley compliance environment to its financial
reporting function including a Chief Accountant, a Treasurer and an IT Director.
   
 PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
  
 ITEM 1A. RISK FACTORS
  The current accounting treatment applicable to our convertible notes may be rescinded.
 Accounting for Convertible Debt
Instruments That May Be Settled in Cash Upon Conversion (Including Partial Cash Settlement) (FSP
14-a)
 53




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The Company will face the risk of political and economic developments, crises, instability,
terrorism, civil strife, expropriation and other risks of doing business in foreign markets.
  
    
    Brazil and other Latin American countries have historically experienced uneven
periods of economic growth as well as recession, high
inflation, currency devaluation and economic instability.  The countries
governments have been known to intervene in their respective economies which has
involved price controls, currency devaluations, capital controls and limits on
imports.
    
    Thailand has recently experienced significant political and militant
unrest in certain provinces.  The countrys elected government was overthrown
in September of 2006, with no assurance that democracy will be restored.
    
    In recent years Venezuela has experienced difficult economic conditions,
relatively high levels of inflation, and foreign exchange and price controls.  The
President of Venezuela has the authority to legislate certain areas by decree, and
the government has nationalized or announced plans to nationalize certain industries
and to expropriate certain companies and property.
 
 ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
 Dividends
  Purchases of Equity Securities by the Issuer and Affiliated Purchasers
  
 ITEM 3. DEFAULTS UPON SENIOR SECURITIES
  54




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ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
   1.2
    
    
    Purchase Agreement for the $475.0 million 1.00% Senior Convertible Notes
Due 2012, dated September 26, 2007, by and among General Cable Corporation, the
subsidiary guarantors named therein, Merrill Lynch & Co. and Merrill Lynch, Pierce,
Fenner & Smith Incorporated (incorporated by reference to Exhibit 1.1 to the Form
8-K as filed on October 2, 2007).4.7
    
    
    Indenture for the $475.0 million 1.00% Senior Convertible Notes Due 2012,
dated October 2, 2007, by and among General Cable Corporation, the subsidiary
guarantors named therein, and U.S. Bank National Association, as Trustee
(incorporated by reference to Exhibit 4.1 to the Form 8-K as filed on October 2,
2007).
 10.107
    
    
    Stock Purchase Agreement, dated as of September 12, 2007, by and among
Freeport-McMoRan Copper & Gold Inc., Phelps Dodge Corporation, Phelps Dodge
Industries, Inc., Habirshaw Cable and Wire Corporation and General Cable Corporation
(incorporated by reference to Exhibit 2.1 to the form 8-K as filed on September 12,
2007).10.108
    
    
    Third Amended and Restated Credit Agreement, dated October 31, 2007, by and among
GCI, as Borrower, the Company and those certain other subsidiaries of the Company
party thereto, as Guarantors, the Issuing Banks, the Lenders and Merrill Lynch
Capital, a division of Merrill Lynch Business Financial Services Inc., as
Administrative Agent for the Lenders, Collateral Agent and Security Trustee
(incorporated by reference to Exhibit 10.1 to the Form 8-K as filed on November 1,
2007).*10.109
    
    
    Letter Agreement, dated October 29, 2007, to the Stock Purchase Agreement, dated
as of September 12, 2007, by and among Freeport-McMoRan Cooper & Gold Inc., Phelps
Dodge Corporation, Phelps Dodge Industries, Inc., Habirshaw Cable and Wire
Corporation and General Cable Corporation.*12.1
    
    
    Computation of Ratio of Earnings to Fixed Charges*31.1
    
    
    Certification of Chief Executive Officer pursuant to Rule 13a 
14(a) or 15d  14*31.2
    
    
    Certification of Chief Financial Officer pursuant to Rule 13a 
14(a) or 15d  14*32.1
    
    
    Certification pursuant to 18 U.S.C. § 1350, as adopted under Section
906 of the Sarbanes-Oxley Act of 2002.
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Signature
  General Cable CorporationSigned:  November 7, 2007
    By:
    /s/ BRIAN J. ROBINSONBrian J. RobinsonSenior Vice President, Chief 

Financial Officer and Treasurer

(Chief Accounting Officer) 56




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##### Table of Contents



Exhibit Index
 1.2
    
    
    Purchase Agreement for the $475.0 million 1.00% Senior Convertible Notes
Due 2012, dated September 26, 2007, by and among General Cable Corporation, the
subsidiary guarantors named therein, Merrill Lynch & Co. and Merrill Lynch, Pierce,
Fenner & Smith Incorporated (incorporated by reference to Exhibit 1.1 to the Form
8-K as filed on October 2, 2007).4.7
    
    
    Indenture for the $475.0 million 1.00% Senior Convertible Notes Due 2012,
dated October 2, 2007, by and among General Cable Corporation, the subsidiary
guarantors named therein, and U.S. Bank National Association, as Trustee
(incorporated by reference to Exhibit 4.1 to the Form 8-K as filed on October 2,
2007).
 10.107
    
    
    Stock Purchase Agreement, dated as of September 12, 2007, by and among
Freeport-McMoRan Copper & Gold Inc., Phelps Dodge Corporation, Phelps Dodge
Industries, Inc., Habirshaw Cable and Wire Corporation and General Cable Corporation
(incorporated by reference to Exhibit 2.1 to the form 8-K as filed on September 12,
2007).10.108
    
    
    Third Amended and Restated Credit Agreement, dated October 31, 2007, by and among
GCI, as Borrower, the Company and those certain other subsidiaries of the Company
party thereto, as Guarantors, the Issuing Banks, the Lenders and Merrill Lynch
Capital, a division of Merrill Lynch Business Financial Services Inc., as
Administrative Agent for the Lenders, Collateral Agent and Security Trustee
(incorporated by reference to Exhibit 10.1 to the Form 8-K as filed on November 1,
2007).10.109
    
    
    Letter Agreement, dated October 29, 2007, to the Stock Purchase Agreement, dated
as of September 12, 2007, by and among Freeport-McMoRan Cooper & Gold Inc., Phelps
Dodge Corporation, Phelps Dodge Industries, Inc., Habirshaw Cable and Wire
Corporation and General Cable Corporation.12.1
    
    
    Computation of Ratio of Earnings to Fixed Charges31.1
    
    
    Certification of Chief Executive Officer pursuant to Rule 13a 
14(a) or 15d  1431.2
    
    
    Certification of Chief Financial Officer pursuant to Rule 13a  14(a)
or 15d  1432.1
    
    
    Certification pursuant to 18 U.S.C. § 1350, as adopted under Section
906 of the Sarbanes-Oxley Act of 2002.
 57