##### 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 June 29, 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
    
    06-1398235(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)4 Tesseneer Drive
    
    41076-9753Highland Heights, KY
    
    (Zip Code)(Address of principal executive offices)
 Registrants telephone number, including area code: (859) 572-8000
 þ o
  þ o o
 o þ
  Class
    
    Outstanding at August 1, 2007Common Stock, $0.01 per value
    
    52,515,559




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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 six fiscal months ended June 29, 2007
and June 30, 2006
    
    
    3Balance Sheets -
June 29, 2007 and December 31, 2006
    
    
    4Statements of Cash Flows -
For the six fiscal months ended June 29, 2007 and June 30, 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
    
    
    51PART II
    
    Other InformationItem 1.
    
    Legal Proceedings
    
    
    52Item 1A.
    
    Risk Factors
    
    
    52Item 2.
    
    Unregistered Sales of Equity Securities and Use of Proceeds
    
    
    53Item 3.
    
    Defaults Upon Senior Securities
    
    
    53Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    53Item 5.
    
    Other Information
    
    
    53Item 6.
    
    Exhibits
    
    
    53Signature
    
    
    55Exhibit Index
    
    
    56EX-12.1EX-31.1EX-31.2EX-32.1
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##### Table of Contents



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
    
    
    Six Fiscal Months EndedJune 29,
    
    
    June 30,
    
    
    June 29,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net sales
    
    $
    1,172.5
    
    
    $
    987.1
    
    
    $
    2,181.7
    
    
    $
    1,791.4Cost of sales
    
    
    999.4
    
    
    
    857.6
    
    
    
    1,848.8
    
    
    
    1,564.3Gross profit
    
    
    173.1
    
    
    
    129.5
    
    
    
    332.9
    
    
    
    227.1Selling, general and administrative expenses
    
    
    70.1
    
    
    
    59.1
    
    
    
    138.8
    
    
    
    114.5Operating income
    
    
    103.0
    
    
    
    70.4
    
    
    
    194.1
    
    
    
    112.6Other income (expense)
    
    
    (1.5
    )
    
    
    0.2
    
    
    
    (1.5
    )
    
    
    1.0Interest income (expense):Interest expense
    
    
    (10.6
    )
    
    
    (12.3
    )
    
    
    (19.5
    )
    
    
    (22.4
    )Interest income
    
    
    3.9
    
    
    
    0.7
    
    
    
    6.9
    
    
    
    1.2Loss on extinguishment of debt
    
    
    
    
    
    
    
    
    
    
    (25.1
    )
    
    
    (6.7
    )
    
    
    (11.6
    )
    
    
    (37.7
    )
    
    
    (21.2
    )Income before income taxes
    
    
    94.8
    
    
    
    59.0
    
    
    
    154.9
    
    
    
    92.4Income tax provision
    
    
    (31.9
    )
    
    
    (17.5
    )
    
    
    (54.1
    )
    
    
    (29.5
    )Net income
    
    
    62.9
    
    
    
    41.5
    
    
    
    100.8
    
    
    
    62.9Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.2
    )
    
    
    (0.2
    )Net income applicable to common shareholders
    
    $
    62.8
    
    
    $
    41.4
    
    
    $
    100.6
    
    
    $
    62.7Earnings per shareEarnings per common share-basic
    
    $
    1.23
    
    
    $
    0.81
    
    
    $
    1.97
    
    
    $
    1.24Weighted average common shares-basic
    
    
    51.2
    
    
    
    50.8
    
    
    
    51.1
    
    
    
    50.4Earnings per common share-assuming dilution
    
    $
    1.15
    
    
    $
    0.80
    
    
    $
    1.87
    
    
    $
    1.21Weighted average common shares-assuming dilution
    
    
    54.7
    
    
    
    52.2
    
    
    
    53.8
    
    
    
    51.8
  3




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Condensed Consolidated Balance Sheets
 (in millions, except share data)
 (unaudited)
 June 29,
    
    
    December 31,2007
    
    
    2006AssetsCurrent Assets:Cash and cash equivalents
    
    $
    382.4
    
    
    $
    310.5Receivables, net of allowances of $12.5 million at June 29, 2007 and
$10.0 million at December 31, 2006
    
    
    978.9
    
    
    
    723.7Inventories
    
    
    633.4
    
    
    
    563.1Deferred income taxes
    
    
    110.1
    
    
    
    104.1Prepaid expenses and other
    
    
    44.1
    
    
    
    32.9Total current assets
    
    
    2,148.9
    
    
    
    1,734.3Property, plant and equipment, net
    
    
    448.2
    
    
    
    416.7Deferred income taxes
    
    
    26.5
    
    
    
    28.8Other non-current assets
    
    
    56.1
    
    
    
    38.9Total assets
    
    $
    2,679.7
    
    
    $
    2,218.7Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    803.4
    
    
    $
    655.4Accrued liabilities
    
    
    340.7
    
    
    
    284.3Current portion of long-term debt
    
    
    434.1
    
    
    
    55.5Total current liabilities
    
    
    1,578.2
    
    
    
    995.2Long-term debt
    
    
    375.7
    
    
    
    685.1Deferred income taxes
    
    
    12.4
    
    
    
    13.2Other liabilities
    
    
    161.5
    
    
    
    90.8Total liabilities
    
    
    2,127.8
    
    
    
    1,784.3Commitments and ContingenciesShareholders Equity:Redeemable convertible preferred stock, at redemption value
(liquidation preference of $50.00 per
share): June 29, 2007  101,949 outstanding shares
December 31, 2006  101,949 outstanding shares
    
    
    5.1
    
    
    
    5.1Common stock, $0.01 par value, issued and outstanding
shares: 
June 29, 2007  52,336,036 (net of 5,098,598 treasury shares)
December 31, 2006  52,002,052 (net of 4,999,035 treasury shares)
    
    
    0.6
    
    
    
    0.6Additional paid-in capital
    
    
    263.0
    
    
    
    245.5Treasury stock
    
    
    (59.2
    )
    
    
    (53.0
    )Retained earnings
    
    
    320.7
    
    
    
    238.8Accumulated other comprehensive income (loss)
    
    
    21.7
    
    
    
    (2.6
    )Total shareholders equity
    
    
    551.9
    
    
    
    434.4Total liabilities and shareholders equity
    
    $
    2,679.7
    
    
    $
    2,218.7
  4




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Condensed Consolidated Statements of Cash Flows
 (in millions)
 (unaudited)
 Six Fiscal Months EndedJune 29,
    
    
    June 30,2007
    
    
    2006Cash flows of operating activities:Net income
    
    $
    100.8
    
    
    $
    62.9Adjustments to reconcile net income to net cash flows of
operating activities:Depreciation and amortization
    
    
    28.7
    
    
    
    25.5Loss on extinguishment of debt
    
    
    25.1
    
    
    
    Foreign currency exchange (gain) loss
    
    
    1.5
    
    
    
    (1.0
    )Deferred income taxes
    
    
    (4.8
    )
    
    
    2.6Excess tax benefits from stock-based compensation
    
    
    (9.3
    )
    
    
    (8.4
    )Loss on disposal of property
    
    
    0.8
    
    
    
    0.8Changes in operating assets and liabilities, net of effect of
acquisitions and divestitures:Increase in receivables
    
    
    (212.6
    )
    
    
    (223.9
    )Increase in inventories
    
    
    (31.5
    )
    
    
    (17.3
    )Increase in other assets
    
    
    (0.5
    )
    
    
    (7.3
    )Increase in accounts payable, accrued and other liabilities
    
    
    147.9
    
    
    
    171.2Net cash flows of operating activities
    
    
    46.1
    
    
    
    5.1Cash flows of investing activities:Capital expenditures
    
    
    (45.7
    )
    
    
    (22.6
    )Proceeds from properties sold
    
    
    0.6
    
    
    
    0.4Proceeds from acquisitions including cash acquired
    
    
    17.0
    
    
    
    Acquisitions, net of cash acquired
    
    
    (5.9
    )
    
    
    (13.7
    )Other, net
    
    
    1.7
    
    
    
    1.6Net cash flows of investing activities
    
    
    (32.3
    )
    
    
    (34.3
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.2
    )
    
    
    (0.2
    )Excess tax benefits from stock-based compensation
    
    
    9.3
    
    
    
    8.4Proceeds from revolving credit borrowings
    
    
    
    
    
    
    101.3Repayments of revolving credit borrowings
    
    
    
    
    
    
    (120.4
    )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
    
    
    22.8
    
    
    
    9.7Proceeds from exercise of stock options
    
    
    5.2
    
    
    
    14.8Net cash flows of financing activities
    
    
    54.8
    
    
    
    13.6Effect of exchange rate changes on cash and cash equivalents
    
    
    3.3
    
    
    
    2.4Increase (decrease) in cash and cash equivalents
    
    
    71.9
    
    
    
    (13.2
    )Cash and cash equivalents  beginning of period
    
    
    310.5
    
    
    
    72.2Cash and cash equivalents  end of period
    
    $
    382.4
    
    
    $
    59.0Supplemental InformationCash paid during the period for:Income tax payments, net of refunds
    
    $
    27.8
    
    
    $
    15.8Interest paid
    
    $
    31.4
    
    
    $
    19.4Non-cash investing and financing activities:Issuance of nonvested shares
    
    $
    3.5
    
    
    $
    5.5Entrance into capital leases
    
    $
    
    
    
    $
    0.1
  5




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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
  The Fair Value Option for Financial Assets and Financial
Liabilities  Including an Amendment of FASB Statement No. 115
 Fair Value Measurements
  6




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)  (Continued)
  3. Acquisitions and Divestitures
   As ofApril 30, 2007Cash
    
    $
    12.3Accounts receivable
    
    
    21.8Inventories
    
    
    27.4Property, plant and equipment
    
    
    0.9Other current and noncurrent assets
    
    
    1.6Total assets
    
    $
    64.0Current liabilities
    
    $
    38.2Other liabilities
    
    
    0.9Pension liabilities
    
    
    41.9Total liabilities
    
    $
    81.0
       4. Inventories
  7




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
  June 29,
    
    
    December 31,2007
    
    
    2006Raw materials
    
    $
    94.0
    
    
    $
    73.6Work in process
    
    
    128.9
    
    
    
    94.9Finished goods
    
    
    410.5
    
    
    
    394.6Total
    
    $
    633.4
    
    
    $
    563.1
    5. Property, Plant and Equipment
   June 29,
    
    
    Dec. 31,2007
    
    
    2006Land
    
    $
    41.1
    
    
    $
    39.1Buildings and leasehold improvements
    
    
    84.5
    
    
    
    76.0Machinery, equipment and office furnishings
    
    
    563.2
    
    
    
    518.4Construction in progress
    
    
    29.0
    
    
    
    19.5Total  gross book value
    
    
    717.8
    
    
    
    653.0Less accumulated depreciation
    
    
    (269.6
    )
    
    
    (236.3
    )Total  net book value
    
    $
    448.2
    
    
    $
    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
  June 29,
    
    
    December 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
    
    
    31.9
    
    
    
    33.9Capital leases
    
    
    3.8
    
    
    
    4.3Other
    
    
    89.3
    
    
    
    62.4Total debt
    
    
    809.8
    
    
    
    740.6Less current maturities
    
    
    434.1
    
    
    
    55.5Long-term debt
    
    $
    375.7
    
    
    $
    685.1Weighted average interest rates on the above outstanding balances were as follows:9.5% Senior Notes due 2010
    
    
    9.5
    %
    
    
    9.5
    %7.125% Senior Notes due 2017
    
    
    7.125
    %
    
    
    
    %Senior Floating Rate Notes
    
    
    7.725
    %
    
    
    
    %0.875% Convertible Notes
    
    
    0.875
    %
    
    
    0.875
    %Spanish Term Loan
    
    
    4.6
    %
    
    
    4.6
    %Capital leases
    
    
    6.5
    %
    
    
    6.5
    %Other
    
    
    4.0
    %
    
    
    3.8
    %
  9




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##### Table of Contents



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
     Net Investment Hedge
  13




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
  Fair Value of Designated Derivatives
  June 29, 2007
    
    
    December 31, 2006Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.3
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Commodity futures
    
    
    165.4
    
    
    
    9.6
    
    
    
    217.6
    
    
    
    (10.8
    )Foreign currency forward exchange
    
    
    312.4
    
    
    
    (9.9
    )
    
    
    152.0
    
    
    
    (5.6
    )Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (18.6
    )
    
    
    150.0
    
    
    
    (14.3
    )$
    (19.2
    )
    
    
    
    
    
    $
    (31.1
    )
 Other Forward Pricing Agreements
  9. Income Taxes
   14




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
   10. Employee Benefit Plans
  Defined Benefit Pension Plans
    Employers Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for
Termination Benefits
 15




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
  Three Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006U.S. Plans
    
    
    Non-U.S Plans
    
    
    U.S. Plans
    
    
    Non-U.S. PlansService cost
    
    $
    0.5
    
    
    $
    0.2
    
    
    $
    0.6
    
    
    $
    0.2Interest cost
    
    
    2.1
    
    
    
    0.5
    
    
    
    2.3
    
    
    
    0.4Expected return on plan assets
    
    
    (2.6
    )
    
    
    (0.5
    )
    
    
    (2.4
    )
    
    
    (0.4
    )Amortization of prior service cost
    
    
    0.3
    
    
    
    
    
    
    
    0.3
    
    
    
    Amortization of net loss
    
    
    0.4
    
    
    
    0.2
    
    
    
    0.7
    
    
    
    0.1Curtailment loss
    
    
    3.2
    
    
    
    
    
    
    
    
    
    
    
    Settlement gain
    
    
    (4.3
    )
    
    
    
    
    
    
    
    
    
    
    Net pension expense (gain)
    
    $
    (0.4
    )
    
    $
    0.4
    
    
    $
    1.5
    
    
    $
    0.3
 Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006U.S. Plans
    
    
    Non-U.S Plans
    
    
    U.S. Plans
    
    
    Non-U.S. PlansService cost
    
    $
    1.0
    
    
    $
    0.4
    
    
    $
    1.0
    
    
    $
    0.5Interest cost
    
    
    4.3
    
    
    
    1.0
    
    
    
    4.5
    
    
    
    0.8Expected return on plan assets
    
    
    (5.2
    )
    
    
    (0.9
    )
    
    
    (4.8
    )
    
    
    (0.8
    )Amortization of prior service cost
    
    
    0.6
    
    
    
    
    
    
    
    0.6
    
    
    
    0.1Amortization of net loss
    
    
    0.9
    
    
    
    0.3
    
    
    
    1.4
    
    
    
    0.1Curtailment loss
    
    
    3.2
    
    
    
    
    
    
    
    
    
    
    
    Settlement gain
    
    
    (4.3
    )
    
    
    
    
    
    
    
    
    
    
    Net pension expense
    
    $
    0.5
    
    
    $
    0.8
    
    
    $
    2.7
    
    
    $
    0.7
  Postretirement Benefits Other Than Pensions
   Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 29,
    
    
    June 30,
    
    
    June 29,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Service cost
    
    $
    
    
    
    $
    
    
    
    $
    0.1
    
    
    $
    0.1Interest cost
    
    
    0.1
    
    
    
    0.2
    
    
    
    0.2
    
    
    
    0.3Net amortization and deferral
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Net postretirement benefit expense
    
    $
    0.2
    
    
    $
    0.3
    
    
    $
    0.4
    
    
    $
    0.5
 Defined Contribution Plans
  16




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
 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)
  June 29,
    
    
    December 31,2007
    
    
    2006Foreign currency translation adjustment
    
    $
    59.9
    
    
    $
    44.8Pension adjustments, net of tax
    
    
    (27.0
    )
    
    
    (27.0
    )Change in fair value of derivatives, net of tax
    
    
    (13.9
    )
    
    
    (20.2
    )Unrealized investment gains, net of tax
    
    
    8.3
    
    
    
    6.4Adoption of SFAS 158, net of tax
    
    
    (7.0
    )
    
    
    (7.0
    )Other
    
    
    1.4
    
    
    
    0.4Total
    
    $
    21.7
    
    
    $
    (2.6
    )
  Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 29,
    
    
    June 30,
    
    
    June 29,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Net income
    
    $
    62.9
    
    
    $
    41.5
    
    
    $
    100.8
    
    
    $
    62.9Currency translation gain
    
    
    13.5
    
    
    
    12.2
    
    
    
    15.1
    
    
    
    12.0Change in fair value of derivatives, net of
tax
    
    
    (4.1
    )
    
    
    1.2
    
    
    
    6.3
    
    
    
    4.1Unrealized investment gain, net of tax
    
    
    1.2
    
    
    
    0.6
    
    
    
    1.9
    
    
    
    2.2Comprehensive net income
    
    $
    73.5
    
    
    $
    55.5
    
    
    $
    124.1
    
    
    $
    81.2
 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
  14. Earnings Per Common Share
  Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 29,
    
    
    June 30,
    
    
    June 29,
    
    
    June 30,2007
    
    
    2006
    
    
    2007
    
    
    2006Earnings per common share  basic:Net income
    
    $
    62.9
    
    
    $
    41.5
    
    
    $
    100.8
    
    
    $
    62.9Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.2
    )
    
    
    (0.2
    )Net income for basic EPS computation (1)
    
    $
    62.8
    
    
    $
    41.4
    
    
    $
    100.6
    
    
    $
    62.7Weighted average shares outstanding for basic EPS
computation (2)
    
    
    51.2
    
    
    
    50.8
    
    
    
    51.1
    
    
    
    50.4Earnings per common share  basic
    
    $
    1.23
    
    
    $
    0.81
    
    
    $
    1.97
    
    
    $
    1.24Earnings per common share  assuming dilution:Net income
    
    $
    62.9
    
    
    $
    41.5
    
    
    $
    100.8
    
    
    $
    62.9Less: preferred stock dividends, if applicable
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Net income for diluted EPS computation(1)
    
    $
    62.9
    
    
    $
    41.5
    
    
    $
    100.8
    
    
    $
    62.9Weighted average shares outstanding including
nonvested shares
    
    
    52.3
    
    
    
    50.8
    
    
    
    52.2
    
    
    
    50.4Dilutive effect of stock options and restricted
stock units
    
    
    0.4
    
    
    
    0.9
    
    
    
    0.4
    
    
    
    0.9Dilutive effect of convertible notes
    
    
    1.5
    
    
    
    
    
    
    
    0.7
    
    
    
    Dilutive effect of assumed conversion of preferred
stock
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5
    
    
    
    0.5Weighted average shares outstanding for diluted EPS
computation(2)
    
    
    54.7
    
    
    
    52.2
    
    
    
    53.8
    
    
    
    51.8Earnings per common share  assuming dilution
    
    $
    1.15
    
    
    $
    0.80
    
    
    $
    1.87
    
    
    $
    1.21
 
 (1)
    
    Numerator(2)
    
    Denominator Earnings per Share
 19




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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
 20




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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 InfrastructureAutomotive Products
    
    Transportation and Industrial HarnessesAssemblies
    
    Transportation and Industrial HarnessesTelecommunications
    
    TelecommunicationsDatacom Products
    
    NetworkingEuropean Communications
    
    NetworkingAsia-Pacific Communications
    
    Networking
    Three Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Net sales:North American Electric Utility
    
    $
    228.3
    
    
    $
    216.2International Electric Utility
    
    
    213.9
    
    
    
    143.3North American Portable Power and Control
    
    
    93.0
    
    
    
    85.6North American Electrical Infrastructure
    
    
    107.8
    
    
    
    82.7International Electrical Infrastructure
    
    
    295.0
    
    
    
    244.2Transportation and Industrial Harnesses
    
    
    39.1
    
    
    
    30.6Telecommunications
    
    
    86.7
    
    
    
    100.3Networking
    
    
    108.7
    
    
    
    84.2Total net sales
    
    $
    1,172.5
    
    
    $
    987.1
 Three Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Operating income:North American Electric Utility
    
    $
    24.3
    
    
    $
    14.1International Electric Utility
    
    
    21.8
    
    
    
    11.1North American Portable Power and Control
    
    
    5.1
    
    
    
    6.4North American Electrical Infrastructure
    
    
    10.6
    
    
    
    3.4International Electrical Infrastructure
    
    
    22.4
    
    
    
    17.1Transportation and Industrial Harnesses
    
    
    6.2
    
    
    
    3.9Telecommunications
    
    
    7.2
    
    
    
    12.5Networking
    
    
    5.4
    
    
    
    1.9Total operating income
    
    $
    103.0
    
    
    $
    70.4
 21




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
 Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Net sales:North American Electric Utility
    
    $
    444.4
    
    
    $
    388.8International Electric Utility
    
    
    402.2
    
    
    
    270.8North American Portable Power and Control
    
    
    168.7
    
    
    
    150.6North American Electrical Infrastructure
    
    
    196.0
    
    
    
    156.0International Electrical Infrastructure
    
    
    538.7
    
    
    
    431.4Transportation and Industrial Harnesses
    
    
    70.8
    
    
    
    59.3Telecommunications
    
    
    166.0
    
    
    
    186.3Networking
    
    
    194.9
    
    
    
    148.2Total net sales
    
    $
    2,181.7
    
    
    $
    1,791.4
 Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Operating income(loss):North American Electric Utility
    
    $
    47.4
    
    
    $
    20.3International Electric Utility
    
    
    39.6
    
    
    
    23.4North American Portable Power and Control
    
    
    10.9
    
    
    
    10.5North American Electrical Infrastructure
    
    
    18.2
    
    
    
    4.6International Electrical Infrastructure
    
    
    46.2
    
    
    
    27.9Transportation and Industrial Harnesses
    
    
    10.3
    
    
    
    7.7Telecommunications
    
    
    10.3
    
    
    
    18.5Networking
    
    
    11.2
    
    
    
    (0.3
    )Total operating income
    
    $
    194.1
    
    
    $
    112.6
 As ofJune 29, 2007
    
    
    Dec. 31, 2006Identifiable assets:North American Electric Utility
    
    $
    262.2
    
    
    $
    214.7International Electric Utility
    
    
    564.4
    
    
    
    436.5North American Portable Power and Control
    
    
    149.9
    
    
    
    125.4North American Electrical Infrastructure
    
    
    142.7
    
    
    
    106.3International Electrical Infrastructure
    
    
    653.1
    
    
    
    505.0Transportation and Industrial Harnesses
    
    
    68.8
    
    
    
    55.1Telecommunications
    
    
    166.5
    
    
    
    147.1Networking
    
    
    269.5
    
    
    
    218.5Corporate
    
    
    402.6
    
    
    
    410.1Total assets
    
    $
    2,679.7
    
    
    $
    2,218.7
 16. Commitments and Contingencies
    22




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
        
 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
  Condensed Statements of Operations
Three Fiscal Months Ended June 29, 2007
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    501.4
    
    
    $
    671.1
    
    
    $
    
    
    
    $
    1,172.5Intercompany
    
    
    14.2
    
    
    
    
    
    
    
    
    
    
    
    (14.2
    )
    
    
    14.2
    
    
    
    501.4
    
    
    
    671.1
    
    
    
    (14.2
    )
    
    
    1,172.5Cost of sales
    
    
    
    
    
    
    416.6
    
    
    
    582.8
    
    
    
    
    
    
    
    999.4Gross profit
    
    
    14.2
    
    
    
    84.8
    
    
    
    88.3
    
    
    
    (14.2
    )
    
    
    173.1Selling, general and administrative
expenses
    
    
    11.7
    
    
    
    36.9
    
    
    
    35.7
    
    
    
    (14.2
    )
    
    
    70.1Operating income
    
    
    2.5
    
    
    
    47.9
    
    
    
    52.6
    
    
    
    
    
    
    
    103.0Other income (expense)
    
    
    
    
    
    
    0.2
    
    
    
    (1.7
    )
    
    
    
    
    
    
    (1.5
    )Interest income (expense):Interest expense
    
    
    (8.6
    )
    
    
    (15.5
    )
    
    
    (3.3
    )
    
    
    16.8
    
    
    
    (10.6
    )Interest income
    
    
    18.4
    
    
    
    0.3
    
    
    
    2.0
    
    
    
    (16.8
    )
    
    
    3.99.8
    
    
    
    (15.2
    )
    
    
    (1.3
    )
    
    
    
    
    
    
    (6.7
    )Income before income taxes
    
    
    12.3
    
    
    
    32.9
    
    
    
    49.6
    
    
    
    
    
    
    
    94.8Income tax provision
    
    
    (4.5
    )
    
    
    (10.3
    )
    
    
    (17.1
    )
    
    
    
    
    
    
    (31.9
    )Equity in net income of subsidiaries
    
    
    55.1
    
    
    
    32.5
    
    
    
    
    
    
    
    (87.6
    )
    
    
    Net income
    
    
    62.9
    
    
    
    55.1
    
    
    
    32.5
    
    
    
    (87.6
    )
    
    
    62.9Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    62.8
    
    
    $
    55.1
    
    
    $
    32.5
    
    
    $
    (87.6
    )
    
    $
    62.8
 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
Six Fiscal Months Ended June 29, 2007
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    944.8
    
    
    $
    1,236.9
    
    
    $
    
    
    
    $
    2,181.7Intercompany
    
    
    22.6
    
    
    
    
    
    
    
    
    
    
    
    (22.6
    )
    
    
    22.6
    
    
    
    944.8
    
    
    
    1,236.9
    
    
    
    (22.6
    )
    
    
    2,181.7Cost of sales
    
    
    
    
    
    
    789.5
    
    
    
    1,059.3
    
    
    
    
    
    
    
    1,848.8Gross profit
    
    
    22.6
    
    
    
    155.3
    
    
    
    177.6
    
    
    
    (22.6
    )
    
    
    332.9Selling, general and administrative
expenses
    
    
    23.1
    
    
    
    63.5
    
    
    
    74.8
    
    
    
    (22.6
    )
    
    
    138.8Operating income (loss)
    
    
    (0.5
    )
    
    
    91.8
    
    
    
    102.8
    
    
    
    
    
    
    
    194.1Other income (expense)
    
    
    
    
    
    
    
    
    
    
    (1.5
    )
    
    
    
    
    
    
    (1.5
    )Interest income (expense):Interest expense
    
    
    (15.6
    )
    
    
    (33.7
    )
    
    
    (5.9
    )
    
    
    35.7
    
    
    
    (19.5
    )Interest income
    
    
    38.7
    
    
    
    0.6
    
    
    
    3.3
    
    
    
    (35.7
    )
    
    
    6.9Loss on extinguishment of debt
    
    
    (25.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (25.1
    )(2.0
    )
    
    
    (33.1
    )
    
    
    (2.6
    )
    
    
    
    
    
    
    (37.7
    )Income (loss) before income taxes
    
    
    (2.5
    )
    
    
    58.7
    
    
    
    98.7
    
    
    
    
    
    
    
    154.9Income tax (provision) benefit
    
    
    0.9
    
    
    
    (21.4
    )
    
    
    (33.6
    )
    
    
    
    
    
    
    (54.1
    )Equity in net income of subsidiaries
    
    
    102.4
    
    
    
    65.1
    
    
    
    
    
    
    
    (167.5
    )
    
    
    Net income
    
    
    100.8
    
    
    
    102.4
    
    
    
    65.1
    
    
    
    (167.5
    )
    
    
    100.8Less: preferred stock dividends
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Net income applicable to common
shareholders
    
    $
    100.6
    
    
    $
    102.4
    
    
    $
    65.1
    
    
    $
    (167.5
    )
    
    $
    100.6
 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 June 30, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    478.1
    
    
    $
    509.0
    
    
    $
    
    
    
    $
    987.1Intercompany
    
    
    13.5
    
    
    
    
    
    
    
    
    
    
    
    (13.5
    )
    
    
    13.5
    
    
    
    478.1
    
    
    
    509.0
    
    
    
    (13.5
    )
    
    
    987.1Cost of sales
    
    
    
    
    
    
    411.1
    
    
    
    446.5
    
    
    
    
    
    
    
    857.6Gross profit
    
    
    13.5
    
    
    
    67.0
    
    
    
    62.5
    
    
    
    (13.5
    )
    
    
    129.5Selling, general and administrative
expenses
    
    
    12.6
    
    
    
    32.5
    
    
    
    27.5
    
    
    
    (13.5
    )
    
    
    59.1Operating income
    
    
    0.9
    
    
    
    34.5
    
    
    
    35.0
    
    
    
    
    
    
    
    70.4Other income
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    0.2Interest income (expense):Interest expense
    
    
    (8.8
    )
    
    
    (15.1
    )
    
    
    (2.0
    )
    
    
    13.6
    
    
    
    (12.3
    )Interest income
    
    
    12.8
    
    
    
    0.2
    
    
    
    1.3
    
    
    
    (13.6
    )
    
    
    0.74.0
    
    
    
    (14.9
    )
    
    
    (0.7
    )
    
    
    
    
    
    
    (11.6
    )Income before income taxes
    
    
    4.9
    
    
    
    19.6
    
    
    
    34.5
    
    
    
    
    
    
    
    59.0Income tax provision
    
    
    (1.7
    )
    
    
    (5.0
    )
    
    
    (10.8
    )
    
    
    
    
    
    
    (17.5
    )Equity in net income of subsidiaries
    
    
    38.3
    
    
    
    23.7
    
    
    
    
    
    
    
    (62.0
    )
    
    
    Net income
    
    
    41.5
    
    
    
    38.3
    
    
    
    23.7
    
    
    
    (62.0
    )
    
    
    41.5Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    41.4
    
    
    $
    38.3
    
    
    $
    23.7
    
    
    $
    (62.0
    )
    
    $
    41.4
 Condensed Statements of Operations
Six Fiscal Months Ended June 30, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    855.2
    
    
    $
    936.2
    
    
    $
    
    
    
    $
    1,791.4Intercompany
    
    
    25.7
    
    
    
    
    
    
    
    
    
    
    
    (25.7
    )
    
    
    25.7
    
    
    
    855.2
    
    
    
    936.2
    
    
    
    (25.7
    )
    
    
    1,791.4Cost of sales
    
    
    
    
    
    
    741.6
    
    
    
    822.7
    
    
    
    
    
    
    
    1,564.3Gross profit
    
    
    25.7
    
    
    
    113.6
    
    
    
    113.5
    
    
    
    (25.7
    )
    
    
    227.1Selling, general and administrative
expenses
    
    
    24.0
    
    
    
    64.6
    
    
    
    51.6
    
    
    
    (25.7
    )
    
    
    114.5Operating income
    
    
    1.7
    
    
    
    49.0
    
    
    
    61.9
    
    
    
    
    
    
    
    112.6Other income (expense)
    
    
    
    
    
    
    (0.1
    )
    
    
    1.1
    
    
    
    
    
    
    
    1.0Interest income (expense):Interest expense
    
    
    (15.2
    )
    
    
    (30.5
    )
    
    
    (3.5
    )
    
    
    26.8
    
    
    
    (22.4
    )Interest income
    
    
    25.3
    
    
    
    0.3
    
    
    
    2.4
    
    
    
    (26.8
    )
    
    
    1.210.1
    
    
    
    (30.2
    )
    
    
    (1.1
    )
    
    
    
    
    
    
    (21.2
    )Income before income taxes
    
    
    11.8
    
    
    
    18.7
    
    
    
    61.9
    
    
    
    
    
    
    
    92.4Income tax provision
    
    
    (4.1
    )
    
    
    (5.4
    )
    
    
    (20.0
    )
    
    
    
    
    
    
    (29.5
    )Equity in net income of subsidiaries
    
    
    55.2
    
    
    
    41.9
    
    
    
    
    
    
    
    (97.1
    )
    
    
    Net income
    
    
    62.9
    
    
    
    55.2
    
    
    
    41.9
    
    
    
    (97.1
    )
    
    
    62.9Less: preferred stock dividends
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Net income applicable to common
shareholders
    
    $
    62.7
    
    
    $
    55.2
    
    
    $
    41.9
    
    
    $
    (97.1
    )
    
    $
    62.7
 26




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
 Condensed Balance Sheets
June 29, 2007
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash and cash equivalents
    
    $
    225.8
    
    
    $
    2.6
    
    
    $
    154.0
    
    
    $
    
    
    
    $
    382.4Receivables, net of allowances
    
    
    
    
    
    
    275.4
    
    
    
    703.5
    
    
    
    
    
    
    
    978.9Inventories
    
    
    
    
    
    
    266.0
    
    
    
    367.4
    
    
    
    
    
    
    
    633.4Deferred income taxes
    
    
    4.8
    
    
    
    94.5
    
    
    
    10.8
    
    
    
    
    
    
    
    110.1Prepaid expenses and other
    
    
    3.0
    
    
    
    26.7
    
    
    
    14.4
    
    
    
    
    
    
    
    44.1Total current assets
    
    
    233.6
    
    
    
    665.2
    
    
    
    1,250.1
    
    
    
    
    
    
    
    2,148.9Property, plant and equipment, net
    
    
    0.6
    
    
    
    161.5
    
    
    
    286.1
    
    
    
    
    
    
    
    448.2Deferred income taxes
    
    
    2.1
    
    
    
    9.2
    
    
    
    15.2
    
    
    
    
    
    
    
    26.5Intercompany accounts
    
    
    816.3
    
    
    
    102.6
    
    
    
    97.6
    
    
    
    (1,016.5
    )
    
    
    Investment in subsidiaries
    
    
    225.4
    
    
    
    470.6
    
    
    
    
    
    
    
    (696.0
    )
    
    
    Other non-current assets
    
    
    15.7
    
    
    
    23.5
    
    
    
    16.9
    
    
    
    
    
    
    
    56.1Total assets
    
    $
    1,293.7
    
    
    $
    1,432.6
    
    
    $
    1,665.9
    
    
    $
    (1,712.5
    )
    
    $
    2,679.7Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    201.0
    
    
    $
    602.4
    
    
    $
    
    
    
    $
    803.4Accrued liabilities
    
    
    4.4
    
    
    
    107.9
    
    
    
    228.4
    
    
    
    
    
    
    
    340.7Current portion of long-term debt
    
    
    355.0
    
    
    
    1.1
    
    
    
    78.0
    
    
    
    
    
    
    
    434.1Total current liabilities
    
    
    359.4
    
    
    
    310.0
    
    
    
    908.8
    
    
    
    
    
    
    
    1,578.2Long-term debt
    
    
    329.8
    
    
    
    11.6
    
    
    
    34.3
    
    
    
    
    
    
    
    375.7Deferred income taxes
    
    
    
    
    
    
    0.9
    
    
    
    11.5
    
    
    
    
    
    
    
    12.4Intercompany accounts
    
    
    40.3
    
    
    
    802.6
    
    
    
    173.6
    
    
    
    (1,016.5
    )
    
    
    Other liabilities
    
    
    12.3
    
    
    
    82.1
    
    
    
    67.1
    
    
    
    
    
    
    
    161.5Total liabilities
    
    
    741.8
    
    
    
    1,207.2
    
    
    
    1,195.3
    
    
    
    (1,016.5
    )
    
    
    2,127.8Total shareholders equity
    
    
    551.9
    
    
    
    225.4
    
    
    
    470.6
    
    
    
    (696.0
    )
    
    
    551.9Total liabilities and shareholders equity
    
    $
    1,293.7
    
    
    $
    1,432.6
    
    
    $
    1,665.9
    
    
    $
    (1,712.5
    )
    
    $
    2,679.7
 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
 Non-Guarantor
    
    
    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
Six Fiscal Months Ended June 29, 2007
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    1.3
    
    
    $
    7.8
    
    
    $
    37.0
    
    
    $
    
    
    
    $
    46.1Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (11.4
    )
    
    
    (34.3
    )
    
    
    
    
    
    
    (45.7
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    0.5
    
    
    
    
    
    
    
    0.6Proceeds from acquisitions including cash
acquired
    
    
    
    
    
    
    
    
    
    
    17.0
    
    
    
    
    
    
    
    17.0Acquisitions, net of cash acquired
    
    
    
    
    
    
    
    
    
    
    (5.9
    )
    
    
    
    
    
    
    (5.9
    )Intercompany accounts
    
    
    (5.2
    )
    
    
    
    
    
    
    
    
    
    
    5.2
    
    
    
    Other, net
    
    
    
    
    
    
    1.7
    
    
    
    
    
    
    
    
    
    
    
    1.7Net cash flows of investing activities
    
    
    (5.2
    )
    
    
    (9.6
    )
    
    
    (22.7
    )
    
    
    5.2
    
    
    
    (32.3
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Excess tax benefits from stock-based
compensation
    
    
    9.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.3Intercompany accounts
    
    
    
    
    
    
    (3.9
    )
    
    
    9.1
    
    
    
    (5.2
    )
    
    
    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
    
    
    
    
    
    
    (0.5
    )
    
    
    23.3
    
    
    
    
    
    
    
    22.8Proceeds from exercise of stock options
    
    
    5.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    5.2Net cash flows of financing activities
    
    
    32.0
    
    
    
    (4.4
    )
    
    
    32.4
    
    
    
    (5.2
    )
    
    
    54.8Effect of exchange rate changes on cash and
cash equivalents
    
    
    
    
    
    
    
    
    
    
    3.3
    
    
    
    
    
    
    
    3.3Increase (decrease) in cash and cash equivalents
    
    
    28.1
    
    
    
    (6.2
    )
    
    
    50.0
    
    
    
    
    
    
    
    71.9Cash and cash equivalents  beginning of period
    
    
    197.7
    
    
    
    8.8
    
    
    
    104.0
    
    
    
    
    
    
    
    310.5Cash and cash equivalents  end of period
    
    $
    225.8
    
    
    $
    2.6
    
    
    $
    154.0
    
    
    $
    
    
    
    $
    382.4
 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
Six Fiscal Months Ended June 30, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    17.0
    
    
    $
    21.7
    
    
    $
    (33.6
    )
    
    $
    
    
    
    $
    5.1Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (7.3
    )
    
    
    (15.3
    )
    
    
    
    
    
    
    (22.6
    )Acquisitions, net of cash acquired
    
    
    
    
    
    
    
    
    
    
    (13.7
    )
    
    
    
    
    
    
    (13.7
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    0.3
    
    
    
    
    
    
    
    0.4Intercompany accounts
    
    
    (39.9
    )
    
    
    
    
    
    
    
    
    
    
    39.9
    
    
    
    Other, net
    
    
    
    
    
    
    1.6
    
    
    
    
    
    
    
    
    
    
    
    1.6Net cash flows of investing activities
    
    
    (39.9
    )
    
    
    (5.6
    )
    
    
    (28.7
    )
    
    
    39.9
    
    
    
    (34.3
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Excess tax benefits from stock-based
compensation
    
    
    8.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.4Intercompany accounts
    
    
    
    
    
    
    4.4
    
    
    
    35.5
    
    
    
    (39.9
    )
    
    
    Proceeds from revolving credit borrowings
    
    
    
    
    
    
    101.3
    
    
    
    
    
    
    
    
    
    
    
    101.3Repayments of revolving credit borrowings
    
    
    
    
    
    
    (120.4
    )
    
    
    
    
    
    
    
    
    
    
    (120.4
    )Proceeds (repayments) of other debt
    
    
    
    
    
    
    (0.5
    )
    
    
    10.2
    
    
    
    
    
    
    
    9.7Proceeds from exercise of stock options
    
    
    14.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.8Net cash flows of financing activities
    
    
    23.0
    
    
    
    (15.2
    )
    
    
    45.7
    
    
    
    (39.9
    )
    
    
    13.6Effect of exchange rate changes on cash and
cash equivalents
    
    
    
    
    
    
    
    
    
    
    2.4
    
    
    
    
    
    
    
    2.4Increase (decrease) in cash and cash
equivalents
    
    
    0.1
    
    
    
    0.9
    
    
    
    (14.2
    )
    
    
    
    
    
    
    (13.2
    )Cash and cash equivalents  beginning of
period
    
    
    
    
    
    
    8.5
    
    
    
    63.7
    
    
    
    
    
    
    
    72.2Cash and cash equivalents  end of period
    
    $
    0.1
    
    
    $
    9.4
    
    
    $
    49.5
    
    
    $
    
    
    
    $
    59.0
 30




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 ITEM 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
  Overview
     Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006
    
    
    June 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Net sales:North America
    
    $
    615.2
    
    
    
    52
    %
    
    $
    579.5
    
    
    
    59
    %
    
    $
    1,160.3
    
    
    
    53
    %
    
    $
    1,043.7
    
    
    
    58
    %International
    
    
    557.3
    
    
    
    48
    %
    
    
    407.6
    
    
    
    41
    %
    
    
    1,021.4
    
    
    
    47
    %
    
    
    747.7
    
    
    
    42
    %Total net sales
    
    $
    1,172.5
    
    
    
    100
    %
    
    $
    987.1
    
    
    
    100
    %
    
    $
    2,181.7
    
    
    
    100
    %
    
    $
    1,791.4
    
    
    
    100
    %Operating income:North America
    
    $
    57.0
    
    
    
    55
    %
    
    $
    42.0
    
    
    
    60
    %
    
    $
    103.9
    
    
    
    54
    %
    
    $
    62.3
    
    
    
    55
    %International
    
    
    46.0
    
    
    
    45
    %
    
    
    28.4
    
    
    
    40
    %
    
    
    90.2
    
    
    
    46
    %
    
    
    50.3
    
    
    
    45
    %Total operating income
    
    $
    103.0
    
    
    
    100
    %
    
    $
    70.4
    
    
    
    100
    %
    
    $
    194.1
    
    
    
    100
    %
    
    $
    112.6
    
    
    
    100
    %
 31




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##### Table of Contents



Current Business Environment
   
    
    Worldwide underlying growth trends in energy and industrial infrastructure markets;
    
    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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##### Table of Contents



33




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##### Table of Contents



Acquisitions and Divestitures
    As ofApril 30, 2007Cash
    
    $
    12.3Accounts receivable
    
    
    21.8Inventories
    
    
    27.4Property, plant and equipment
    
    
    0.9Other current and noncurrent assets
    
    
    1.6Total assets
    
    $
    64.0Current liabilities
    
    $
    38.2Other liabilities
    
    
    0.9Pension liabilities
    
    
    41.9Total liabilities
    
    $
    81.0
      34




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##### Table of Contents



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




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##### Table of Contents



Results of Operations
  Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006
    
    
    June 29, 2007
    
    
    June 30, 2006Amount
    %
    
    
    Amount
    %
    
    
    Amount
    %
    
    
    Amount
    %Net sales
    
    $
    1,172.5
    
    
    
    100.0
    %
    
    $
    987.1
    
    
    
    100.0
    %
    
    $
    2,181.7
    
    
    
    100.0
    %
    
    $
    1,791.4
    
    
    
    100.0
    %Cost of sales
    
    
    999.4
    
    
    
    85.2
    %
    
    
    857.6
    
    
    
    86.9
    %
    
    
    1,848.8
    
    
    
    84.7
    %
    
    
    1,564.3
    
    
    
    87.3
    %Gross profit
    
    
    173.1
    
    
    
    14.8
    %
    
    
    129.5
    
    
    
    13.1
    %
    
    
    332.9
    
    
    
    15.3
    %
    
    
    227.1
    
    
    
    12.7
    %Selling, general and
administrative
expenses
    
    
    70.1
    
    
    
    6.0
    %
    
    
    59.1
    
    
    
    6.0
    %
    
    
    138.8
    
    
    
    6.4
    %
    
    
    114.5
    
    
    
    6.4
    %Operating income
    
    
    103.0
    
    
    
    8.8
    %
    
    
    70.4
    
    
    
    7.1
    %
    
    
    194.1
    
    
    
    8.9
    %
    
    
    112.6
    
    
    
    6.3
    %Other income (expense)
    
    
    (1.5
    )
    
    
    (0.1
    )%
    
    
    0.2
    
    
    
    
    %
    
    
    (1.5
    )
    
    
    (0.1
    )%
    
    
    1.0
    
    
    
    
    %Interest expense, net
    
    
    (6.7
    )
    
    
    (0.6
    )%
    
    
    (11.6
    )
    
    
    (1.2
    )%
    
    
    (12.6
    )
    
    
    (0.6
    )%
    
    
    (21.2
    )
    
    
    (1.2
    )%Loss on
extinguishment of
debt
    
    
    
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    (25.1
    )
    
    
    (1.2
    )%
    
    
    
    
    
    
    
    %Income before income
taxes
    
    
    94.8
    
    
    
    8.1
    %
    
    
    59.0
    
    
    
    6.0
    %
    
    
    154.9
    
    
    
    7.1
    %
    
    
    92.4
    
    
    
    5.2
    %Income tax provision
    
    
    (31.9
    )
    
    
    (2.7
    )%
    
    
    (17.5
    )
    
    
    (1.8
    )%
    
    
    (54.1
    )
    
    
    (2.5
    )%
    
    
    (29.5
    )
    
    
    (1.6
    )%Net income
    
    
    62.9
    
    
    
    5.4
    %
    
    
    41.5
    
    
    
    4.2
    %
    
    
    100.8
    
    
    
    4.6
    %
    
    
    62.9
    
    
    
    3.5
    %Less: preferred stock
dividends
    
    
    (0.1
    )
    
    
    
    %
    
    
    (0.1
    )
    
    
    
    %
    
    
    (0.2
    )
    
    
    
    %
    
    
    (0.2
    )
    
    
    
    %Net income applicable
to
common shareholders
    
    $
    62.8
    
    
    
    5.4
    %
    
    $
    41.4
    
    
    
    4.2
    %
    
    $
    100.6
    
    
    
    4.6
    %
    
    $
    62.7
    
    
    
    3.5
    %
 Three Fiscal Months Ended June 29, 2007 Compared with Three Fiscal Months Ended June 30, 2006
  Net Sales
  Net SalesThree Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    228.3
    
    
    
    20
    %
    
    $
    216.2
    
    
    
    22
    %International Electric Utility
    
    
    213.9
    
    
    
    18
    %
    
    
    143.3
    
    
    
    14
    %North American Portable Power and Control
    
    
    93.0
    
    
    
    8
    %
    
    
    85.6
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    107.8
    
    
    
    9
    %
    
    
    82.7
    
    
    
    8
    %International Electrical Infrastructure
    
    
    295.0
    
    
    
    25
    %
    
    
    244.2
    
    
    
    25
    %Transportation and Industrial Harnesses
    
    
    39.1
    
    
    
    3
    %
    
    
    30.6
    
    
    
    3
    %Telecommunications
    
    
    86.7
    
    
    
    8
    %
    
    
    100.3
    
    
    
    10
    %Networking
    
    
    108.7
    
    
    
    9
    %
    
    
    84.2
    
    
    
    9
    %Total net sales
    
    $
    1,172.5
    
    
    
    100
    %
    
    $
    987.1
    
    
    
    100
    %
 36




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##### Table of Contents



Metal-Adjusted Net SalesThree Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    228.3
    
    
    
    20
    %
    
    $
    220.1
    
    
    
    22
    %International Electric Utility
    
    
    213.9
    
    
    
    18
    %
    
    
    145.4
    
    
    
    15
    %North American Portable Power and Control
    
    
    93.0
    
    
    
    8
    %
    
    
    86.5
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    107.8
    
    
    
    9
    %
    
    
    83.7
    
    
    
    8
    %International Electrical Infrastructure
    
    
    295.0
    
    
    
    25
    %
    
    
    247.8
    
    
    
    25
    %Transportation and Industrial Harnesses
    
    
    39.1
    
    
    
    3
    %
    
    
    30.6
    
    
    
    3
    %Telecommunications
    
    
    86.7
    
    
    
    8
    %
    
    
    101.9
    
    
    
    10
    %Networking
    
    
    108.7
    
    
    
    9
    %
    
    
    85.0
    
    
    
    8
    %Total metal-adjusted net sales
    
    $
    1,172.5
    
    
    
    100
    %
    
    $
    1,001.0
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (13.9
    )Total net sales
    
    $
    1,172.5
    
    
    
    
    
    
    $
    987.1
 Metal Pounds SoldThree Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Pounds
    
    
    %
    
    
    Pounds
    
    
    %North American Electric Utility
    
    
    58.5
    
    
    
    28
    %
    
    
    64.0
    
    
    
    30
    %International Electric Utility
    
    
    49.3
    
    
    
    24
    %
    
    
    35.2
    
    
    
    17
    %North American Portable Power and Control
    
    
    13.7
    
    
    
    6
    %
    
    
    13.1
    
    
    
    6
    %North American Electrical Infrastructure
    
    
    16.0
    
    
    
    8
    %
    
    
    14.0
    
    
    
    7
    %International Electrical Infrastructure
    
    
    45.2
    
    
    
    22
    %
    
    
    51.9
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    0.3
    
    
    
    
    %
    
    
    0.3
    
    
    
    
    %Telecommunications
    
    
    16.9
    
    
    
    8
    %
    
    
    23.5
    
    
    
    11
    %Networking
    
    
    8.8
    
    
    
    4
    %
    
    
    10.5
    
    
    
    5
    %Total metal pounds sold
    
    
    208.7
    
    
    
    100
    %
    
    
    212.5
    
    
    
    100
    %
    37




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##### Table of Contents



Gross Profit
  38




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##### Table of Contents



Selling, General and Administrative Expense
  Operating Income
  Operating IncomeThree Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    24.3
    
    
    
    24
    %
    
    $
    14.1
    
    
    
    20
    %International Electric Utility
    
    
    21.8
    
    
    
    21
    %
    
    
    11.1
    
    
    
    16
    %North American Portable Power and Control
    
    
    5.1
    
    
    
    5
    %
    
    
    6.4
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    10.6
    
    
    
    10
    %
    
    
    3.4
    
    
    
    5
    %International Electrical Infrastructure
    
    
    22.4
    
    
    
    22
    %
    
    
    17.1
    
    
    
    23
    %Transportation and Industrial Harnesses
    
    
    6.2
    
    
    
    6
    %
    
    
    3.9
    
    
    
    6
    %Telecommunications
    
    
    7.2
    
    
    
    7
    %
    
    
    12.5
    
    
    
    18
    %Networking
    
    
    5.4
    
    
    
    5
    %
    
    
    1.9
    
    
    
    3
    %Total operating income
    
    $
    103.0
    
    
    
    100
    %
    
    $
    70.4
    
    
    
    100
    %
     39




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##### Table of Contents



Other Income (Expense)
  Interest Expense
  Tax Provision
  Preferred Stock Dividends
  Six Fiscal Months Ended June 29, 2007 Compared with Six Fiscal Months Ended June 30, 2006
  Net Sales
  40




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##### Table of Contents



Net SalesSix Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    444.4
    
    
    
    20
    %
    
    $
    388.8
    
    
    
    22
    %International Electric Utility
    
    
    402.2
    
    
    
    18
    %
    
    
    270.8
    
    
    
    15
    %North American Portable Power and Control
    
    
    168.7
    
    
    
    8
    %
    
    
    150.6
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    196.0
    
    
    
    9
    %
    
    
    156.0
    
    
    
    9
    %International Electrical Infrastructure
    
    
    538.7
    
    
    
    25
    %
    
    
    431.4
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    70.8
    
    
    
    3
    %
    
    
    59.3
    
    
    
    3
    %Telecommunications
    
    
    166.0
    
    
    
    8
    %
    
    
    186.3
    
    
    
    10
    %Networking
    
    
    194.9
    
    
    
    9
    %
    
    
    148.2
    
    
    
    8
    %Total net sales
    
    $
    2,181.7
    
    
    
    100
    %
    
    $
    1,791.4
    
    
    
    100
    %
 Metal-Adjusted Net SalesSix Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    444.4
    
    
    
    20
    %
    
    $
    408.5
    
    
    
    22
    %International Electric Utility
    
    
    402.2
    
    
    
    18
    %
    
    
    280.4
    
    
    
    15
    %North American Portable Power and Control
    
    
    168.7
    
    
    
    8
    %
    
    
    156.7
    
    
    
    8
    %North American Electrical Infrastructure
    
    
    196.0
    
    
    
    9
    %
    
    
    163.6
    
    
    
    9
    %International Electrical Infrastructure
    
    
    538.7
    
    
    
    25
    %
    
    
    458.7
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    70.8
    
    
    
    3
    %
    
    
    59.4
    
    
    
    3
    %Telecommunications
    
    
    166.0
    
    
    
    8
    %
    
    
    198.0
    
    
    
    11
    %Networking
    
    
    194.9
    
    
    
    9
    %
    
    
    153.1
    
    
    
    8
    %Total metal-adjusted net sales
    
    $
    2,181.7
    
    
    
    100
    %
    
    $
    1,878.4
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (87.0
    )Total net sales
    
    $
    2,181.7
    
    
    
    
    
    
    $
    1,791.4
 Metal Pounds SoldSix Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Pounds
    
    
    %
    
    
    Pounds
    
    
    %North American Electric Utility
    
    
    119.8
    
    
    
    30
    %
    
    
    121.1
    
    
    
    29
    %International Electric Utility
    
    
    97.4
    
    
    
    24
    %
    
    
    67.6
    
    
    
    16
    %North American Portable Power and Control
    
    
    25.1
    
    
    
    6
    %
    
    
    24.8
    
    
    
    6
    %North American Electrical Infrastructure
    
    
    30.3
    
    
    
    7
    %
    
    
    28.9
    
    
    
    7
    %International Electrical Infrastructure
    
    
    84.1
    
    
    
    21
    %
    
    
    105.3
    
    
    
    26
    %Transportation and Industrial Harnesses
    
    
    0.5
    
    
    
    
    %
    
    
    0.5
    
    
    
    
    %Telecommunications
    
    
    32.1
    
    
    
    8
    %
    
    
    46.1
    
    
    
    11
    %Networking
    
    
    17.1
    
    
    
    4
    %
    
    
    19.8
    
    
    
    5
    %Total metal pounds sold
    
    
    406.4
    
    
    
    100
    %
    
    
    414.1
    
    
    
    100
    %
   41




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42




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##### Table of Contents



Gross Profit
  Selling, General and Administrative Expense
  Operating Income
  Operating IncomeSix Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    47.4
    
    
    
    25
    %
    
    $
    20.3
    
    
    
    18
    %International Electric Utility
    
    
    39.6
    
    
    
    20
    %
    
    
    23.4
    
    
    
    21
    %North American Portable Power and Control
    
    
    10.9
    
    
    
    6
    %
    
    
    10.5
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    18.2
    
    
    
    9
    %
    
    
    4.6
    
    
    
    4
    %International Electrical Infrastructure
    
    
    46.2
    
    
    
    24
    %
    
    
    27.9
    
    
    
    25
    %Transportation and Industrial Harnesses
    
    
    10.3
    
    
    
    5
    %
    
    
    7.7
    
    
    
    7
    %Telecommunications
    
    
    10.3
    
    
    
    5
    %
    
    
    18.5
    
    
    
    16
    %Networking
    
    
    11.2
    
    
    
    6
    %
    
    
    (0.3
    )
    
    
    
    %Total operating income
    
    $
    194.1
    
    
    
    100
    %
    
    $
    112.6
    
    
    
    100
    %
    43




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##### Table of Contents



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




---



##### Table of Contents



Six Fiscal Months EndedJune 29, 2007
    
    
    June 30, 2006North America
    
    $
    (2.7
    )
    
    $
    22.1International
    
    
    48.8
    
    
    
    (17.0
    )Total
    
    $
    46.1
    
    
    $
    5.1
 Summary of Cash Flows
    Debt and Other Contractual Obligations
   45




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##### Table of Contents



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




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##### Table of Contents




 
     48




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##### Table of Contents



Payments Due by PeriodLess than
    
    
    1  3
    
    
    4  5
    
    
    After 5Total
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    YearsContractual obligations(1):Total debt
    
    $
    809.8
    
    
    $
    434.1
    
    
    $
    21.8
    
    
    $
    17.0
    
    
    $
    336.9Interest payments on 9.5% Senior Notes
    
    
    1.6
    
    
    
    0.5
    
    
    
    0.9
    
    
    
    0.2
    
    
    
    Interest payments on 7.125% Senior Notes
    
    
    149.6
    
    
    
    14.3
    
    
    
    28.5
    
    
    
    28.5
    
    
    
    78.3Interest payments on Senior Floating Rate Notes
    
    
    82.1
    
    
    
    9.7
    
    
    
    19.3
    
    
    
    19.3
    
    
    
    33.8Interest payments on 0.875% Convertible Notes
    
    
    20.1
    
    
    
    3.1
    
    
    
    6.2
    
    
    
    6.2
    
    
    
    4.6Operating leases
    
    
    27.7
    
    
    
    5.6
    
    
    
    10.7
    
    
    
    6.5
    
    
    
    4.9Defined 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)
    
    
    315.5
    
    
    
    303.5
    
    
    
    12.0
    
    
    
    
    
    
    
    Foreign currency contracts(3)
    
    
    312.4
    
    
    
    230.2
    
    
    
    78.1
    
    
    
    4.1
    
    
    
    Cross currency and interest rate swap
    
    
    175.9
    
    
    
    175.9
    
    
    
    
    
    
    
    
    
    
    
    Total
    
    $
    1,914.1
    
    
    $
    1,185.6
    
    
    $
    180.7
    
    
    $
    84.7
    
    
    $
    463.1
 
 (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.  49




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##### Table of Contents



Off Balance Sheet Assets and Obligations
    Environmental Matters
     50




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##### Table of Contents



ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
   June 29, 2007
    
    
    December 31, 2006Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.3
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Foreign currency forward exchange
    
    
    312.4
    
    
    
    (9.9
    )
    
    
    152.0
    
    
    
    (5.6
    )Commodity futures
    
    
    165.4
    
    
    
    9.6
    
    
    
    217.6
    
    
    
    (10.8
    )Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (18.6
    )
    
    
    150.0
    
    
    
    (14.3
    )$
    (19.2
    )
    
    
    
    
    
    $
    (31.1
    )
 Other Forward Pricing Agreements
  
 ITEM 4. CONTROLS AND PROCEDURES
 Disclosure Controls and Procedures
 .
  51




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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
 
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##### Table of Contents



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
  
 ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
   For
    
    AgainstJohn E. Welsh, III
    
    
    42,343,141
    
    
    
    3,459,419
  b)
    
    Ratification of appointment of Deloitte & Touche LLP to audit the 2007 consolidated
financial statements of General Cable. Votes for  45,235,188; votes against  49,243; and
abstentions  518,130.c)
    
    Approval of an increase in authorized common stock from 75,000,000 shares to 200,000,000
shares.
Votes for  32,534,498; votes against  12,729,836; and abstentions  538,223.
 
 ITEM 5. OTHER INFORMATION
  
 ITEM 6. EXHIBITS
  53




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##### Table of Contents



a)
    
    Exhibits
 3.3
    
    Amended and Restated By-Laws of the Company (incorporated by
reference to Exhibit 3.1 to the Form 8-K as filed on July 25, 2007).**10.105
    
    Amendment to the Supplemental Executive Retirement Plan of General Cable
Corporation (incorporated by reference to Exhibit 10.1 to the Form 8-K as filed on
June 27, 2007).**10.106
    
    Fourth Amendment to the General Cable Corporation Deferred Compensation Plan
(incorporated by reference to Exhibit 10.2 to the Form 8-K as filed on June 27,
2007).*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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##### Table of Contents



Signature
  General Cable CorporationSigned: August 8, 2007
    By:
    /s/ BRIAN J. ROBINSONBrian J. RobinsonSenior Vice President, Chief
Financial Officer and Treasurer
(Chief Accounting Officer) 55




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##### Table of Contents



Exhibit Index
 3.3
    
    Amended and Restated By-Laws of the Company (incorporated by
reference to Exhibit 3.1 to the Form 8-K as filed on July 25, 2007).10.105
    
    Amendment to the Supplemental Executive Retirement Plan of General Cable
Corporation (incorporated by reference to Exhibit 10.1 to the Form 8-K as filed on
June 27, 2007).10.106
    
    Fourth Amendment to the General Cable Corporation Deferred Compensation Plan
(incorporated by reference to Exhibit 10.2 to the Form 8-K as filed on June 27,
2007).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.
 56