##### Table of Contents



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
 (Mark One)þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period ended June 30, 2006ORo
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from ___to ___.
  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 August 1, 2006Common Stock, $0.01 par value
    
    51,332,717
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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
  
 PAGEPART I
    
    Financial InformationItem 1.
    
    Condensed Consolidated Financial StatementsStatements of Operations -For the three fiscal months and six fiscal months ended June 30,
    
    
    32006 and July 1, 2005Balance Sheets -June 30, 2006 and December 31, 2005
    
    
    4Statements of Cash Flows -For the six fiscal months ended June 30, 2006 and July 1, 2005
    
    
    5Statements of Changes in Shareholders' Equity -For the six fiscal months ended June 30, 2006 and July 1, 2005
    
    
    6Notes to Condensed Consolidated Financial Statements
    
    
    7Item 2.
    
    Management's Discussion and Analysis of Financial Condition
    
    
    38and Results of OperationsItem 3.
    
    Quantitative and Qualitative Disclosures about Market Risk
    
    
    57Item 4.
    
    Controls and Procedures
    
    
    58PART II
    
    Other InformationItem 1A.
    
    Risk Factors
    
    
    58Item 4.
    
    Submission of Matters to a Vote of Security Holders
    
    
    59Item 6.
    
    Exhibits
    
    
    59Signature
    
    
    60Exhibit Index
    
    
    61EX-12.1EX-31.1EX-31.2EX-32.1
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##### Table of Contents



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 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005Net sales
    
    $
    987.1
    
    
    $
    608.6
    
    
    $
    1,791.4
    
    
    $
    1,162.8Cost of sales
    
    
    857.6
    
    
    
    537.3
    
    
    
    1,564.3
    
    
    
    1,024.1Gross profit
    
    
    129.5
    
    
    
    71.3
    
    
    
    227.1
    
    
    
    138.7Selling, general and administrative expenses
    
    
    59.1
    
    
    
    43.3
    
    
    
    114.5
    
    
    
    86.5Operating income
    
    
    70.4
    
    
    
    28.0
    
    
    
    112.6
    
    
    
    52.2Other income (expense)
    
    
    0.2
    
    
    
    
    
    
    
    1.0
    
    
    
    (0.1
    )Interest income (expense):Interest expense
    
    
    (12.3
    )
    
    
    (10.6
    )
    
    
    (22.4
    )
    
    
    (20.9
    )Interest income
    
    
    0.7
    
    
    
    1.5
    
    
    
    1.2
    
    
    
    1.9(11.6
    )
    
    
    (9.1
    )
    
    
    (21.2
    )
    
    
    (19.0
    )Income before income taxes
    
    
    59.0
    
    
    
    18.9
    
    
    
    92.4
    
    
    
    33.1Income tax provision
    
    
    (17.5
    )
    
    
    (7.1
    )
    
    
    (29.5
    )
    
    
    (12.3
    )Net income
    
    
    41.5
    
    
    
    11.8
    
    
    
    62.9
    
    
    
    20.8Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (1.5
    )
    
    
    (0.2
    )
    
    
    (3.0
    )Net income applicable to common shareholders
    
    $
    41.4
    
    
    $
    10.3
    
    
    $
    62.7
    
    
    $
    17.8Earnings per shareEarnings per common share
    
    $
    0.81
    
    
    $
    0.26
    
    
    $
    1.24
    
    
    $
    0.45Weighted average common shares
    
    
    50.8
    
    
    
    39.4
    
    
    
    50.4
    
    
    
    39.3Earnings per common share-assuming dilution
    
    $
    0.80
    
    
    $
    0.23
    
    
    $
    1.21
    
    
    $
    0.41Weighted average common shares-assuming dilution
    
    
    52.2
    
    
    
    50.9
    
    
    
    51.8
    
    
    
    50.8
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in millions, except share data)
 June 30,
    
    
    December 31,2006
    
    
    2005(unaudited)AssetsCurrent Assets:Cash
    
    $
    59.0
    
    
    $
    72.2Receivables, net of allowances of $10.3 million at June 30, 2006 and
$8.6 million at December 31, 2005
    
    
    791.7
    
    
    
    542.9Inventories
    
    
    399.2
    
    
    
    363.9Deferred income taxes
    
    
    47.6
    
    
    
    41.9Prepaid expenses and other
    
    
    70.1
    
    
    
    48.6Total current assets
    
    
    1,367.6
    
    
    
    1,069.5Property, plant and equipment, net
    
    
    368.7
    
    
    
    366.4Deferred income taxes
    
    
    54.5
    
    
    
    52.5Other non-current assets
    
    
    33.3
    
    
    
    34.8Total assets
    
    $
    1,824.1
    
    
    $
    1,523.2Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    647.8
    
    
    $
    472.3Accrued liabilities
    
    
    211.4
    
    
    
    212.2Current portion of long-term debt
    
    
    20.0
    
    
    
    6.4Total current liabilities
    
    
    879.2
    
    
    
    690.9Long-term debt
    
    
    425.3
    
    
    
    445.2Deferred income taxes
    
    
    13.1
    
    
    
    13.4Other liabilities
    
    
    106.4
    
    
    
    80.4Total liabilities
    
    
    1,424.0
    
    
    
    1,229.9Shareholders Equity:Redeemable convertible preferred stock, at redemption value (liquidation
preference of $50.00 per share):
June 30, 2006  101,949 shares
December 31, 2005   129,916 shares
    
    
    5.1
    
    
    
    6.5Common stock, $0.01 par value, issued and outstanding shares:
June 30, 2006  51,078,781 (net of 4,998,730 treasury shares)
December 31, 2005   49,520,209 (net of 4,968,755 treasury shares)
    
    
    0.6
    
    
    
    0.5Additional paid-in capital
    
    
    269.4
    
    
    
    246.3Treasury stock
    
    
    (53.0
    )
    
    
    (52.2
    )Retained earnings
    
    
    166.5
    
    
    
    103.8Accumulated other comprehensive income (loss)
    
    
    11.5
    
    
    
    (6.8
    )Other shareholders equity
    
    
    
    
    
    
    (4.8
    )Total shareholders equity
    
    
    400.1
    
    
    
    293.3Total liabilities and shareholders equity
    
    $
    1,824.1
    
    
    $
    1,523.2
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in millions, unaudited)
 Six Fiscal Months EndedJune 30,
    
    
    July 1,2006
    
    
    2005Cash flows of operating activities:Net income
    
    $
    62.9
    
    
    $
    20.8Adjustments to reconcile net income to net cash flows of
operating activities:Depreciation and amortization
    
    
    25.5
    
    
    
    22.2Foreign currency exchange (gain) loss
    
    
    (1.0
    )
    
    
    0.1Deferred income taxes
    
    
    2.6
    
    
    
    1.0Loss on disposal of property
    
    
    0.8
    
    
    
    0.7Changes in operating assets and liabilities, net of effect of
acquisitions and divestitures:Increase in receivables
    
    
    (223.9
    )
    
    
    (86.8
    )Increase in inventories
    
    
    (17.3
    )
    
    
    (25.6
    )(Increase) decrease in other assets
    
    
    (7.3
    )
    
    
    12.5Increase in accounts payable, accrued and other liabilities
    
    
    162.8
    
    
    
    55.8Net cash flows of operating activities
    
    
    5.1
    
    
    
    0.7Cash flows of investing activities:Capital expenditures
    
    
    (22.6
    )
    
    
    (15.7
    )Proceeds from properties sold
    
    
    0.4
    
    
    
    0.1Acquisitions, net of cash acquired
    
    
    (13.7
    )
    
    
    (7.4
    )Other, net
    
    
    1.6
    
    
    
    (0.5
    )Net cash flows of investing activities
    
    
    (34.3
    )
    
    
    (23.5
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.2
    )
    
    
    (3.0
    )Excess tax benefits from stock-based compensation
    
    
    8.4
    
    
    
    Net change in revolving credit borrowings
    
    
    (19.1
    )
    
    
    26.7Proceeds from other debt
    
    
    9.7
    
    
    
    2.7Proceeds from exercise of stock options
    
    
    14.8
    
    
    
    0.5Net cash flows of financing activities
    
    
    13.6
    
    
    
    26.9Effect
of exchange rate changes on cash
    
    
    2.4
    
    
    
    (4.9
    )Decrease in cash
    
    
    (13.2
    )
    
    
    (0.8
    )Cash  beginning of period
    
    
    72.2
    
    
    
    36.4Cash  end of period
    
    $
    59.0
    
    
    $
    35.6Supplemental InformationCash paid during the period for:Income tax payments, net of refunds
    
    $
    15.8
    
    
    $
    3.0Interest paid
    
    $
    19.4
    
    
    $
    20.5Non-cash investing and financing activities:Issuance of nonvested shares
    
    $
    5.5
    
    
    $
    3.6Entrance into capital leases
    
    $
    0.1
    
    
    $
    0.2
  5




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Changes in Shareholders Equity
(dollars in millions, share amounts in thousands)
(unaudited)
 AccumulatedAdd'l
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    OtherPreferred Stock
    
    

Common
Stock
    
    
    Paid in
    
    
    Treasury
    
    
    Retained
    
    
    Comprehensive
    
    
    Shareholders'Shares
    
    
    Amount
    
    
    Shares
    
    
    Amount
    
    
    Capital
    
    
    Stock
    
    
    Earnings
    
    
    Income/ (Loss)
    
    
    Equity
    
    
    TotalBalance, December 31, 2004
    
    
    2,070
    
    
    $
    103.5
    
    
    
    39,336
    
    
    $
    0.4
    
    
    $
    144.1
    
    
    $
    (51.0
    )
    
    $
    86.4
    
    
    $
    22.4
    
    
    $
    (4.4
    )
    
    $
    301.4Comprehensive loss:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    20.8
    
    
    
    
    
    
    
    
    
    
    
    20.8Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (22.7
    )
    
    
    
    
    
    
    (22.7
    )Unrealized investment
gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    0.2Gain on change in fair
value of
financial instruments, net of
$0.3 tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.1
    
    
    
    
    
    
    
    1.1Comprehensive loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.6
    )Preferred stock dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.0
    )
    
    
    
    
    
    
    
    
    
    
    (3.0
    )Issuance of nonvested shares
    
    
    
    
    
    
    
    
    
    
    294
    
    
    
    
    
    
    
    3.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.6
    )
    
    
    Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    64
    
    
    
    
    
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.5Repayment of loans from shareholders
    
    
    
    
    
    
    
    
    
    
    (83
    )
    
    
    
    
    
    
    (1.2
    )
    
    
    (1.2
    )
    
    
    
    
    
    
    
    
    
    
    1.6
    
    
    
    (0.8
    )Amortization of nonvested shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.5
    
    
    
    0.5Other
    
    
    
    
    
    
    
    
    
    
    16
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    0.7Balance, July 1, 2005
    
    
    2,070
    
    
    $
    103.5
    
    
    
    39,627
    
    
    $
    0.4
    
    
    $
    147.2
    
    
    $
    (52.2
    )
    
    $
    104.7
    
    
    $
    1.0
    
    
    $
    (5.9
    )
    
    $
    298.7Balance, December 31, 2005
    
    
    130
    
    
    $
    6.5
    
    
    
    49,520
    
    
    $
    0.5
    
    
    $
    246.3
    
    
    $
    (52.2
    )
    
    $
    103.8
    
    
    $
    (6.8
    )
    
    $
    (4.8
    )
    
    $
    293.3Comprehensive
income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    62.9
    
    
    
    
    
    
    
    
    
    
    
    62.9Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    12.0
    
    
    
    
    
    
    
    12.0Unrealized investment
gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.2
    
    
    
    
    
    
    
    2.2Gain on change in fair
value of
financial instruments, net of $2.8
tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.1
    
    
    
    
    
    
    
    4.1Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    81.2Preferred stock dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Reclass of unearned stock
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4.8
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.8
    
    
    
    Issuance of nonvested shares
    
    
    
    
    
    
    
    
    
    
    213
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock option expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.7Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    1,214
    
    
    
    0.1
    
    
    
    14.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.9Treasury shares related to nonvested
stock vesting
    
    
    
    
    
    
    
    
    
    
    (30
    )
    
    
    
    
    
    
    
    
    
    
    (0.8
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.8
    )Amortization of nonvested shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.5Excess tax benefits from
stock-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8.4Conversion of preferred stock
    
    
    (28
    )
    
    
    (1.4
    )
    
    
    140
    
    
    
    
    
    
    
    1.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    22
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Balance, June 30, 2006
    
    
    102
    
    
    $
    5.1
    
    
    
    51,079
    
    
    $
    0.6
    
    
    $
    269.4
    
    
    $
    (53.0
    )
    
    $
    166.5
    
    
    $
    11.5
    
    
    $
    
    
    
    $
    400.1
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 
 Notes to Condensed Consolidated Financial Statements
 1. General
  2. Summary of Accounting Policies
 Principles of Consolidation
 Basis of Presentation
 Use of Estimates
 Revenue Recognition
 7




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  Stock-Based Compensation
  Three Fiscal
    
    
    Six FiscalMonths Ended
    
    
    Months EndedJuly 1, 2005
    
    
    July 1, 2005Net income as reported
    
    $
    11.8
    
    
    $
    20.8Less: preferred stock dividends
    
    
    (1.5
    )
    
    
    (3.0
    )Deduct: Total stock-based employee compensation expense
determined under fair value based method for all awards, net of
related tax effects
    
    
    (0.2
    )
    
    
    (0.4
    )Pro forma net income for basic EPS computation
    
    $
    10.1
    
    
    $
    17.4Net income as reported
    
    $
    11.8
    
    
    $
    20.8Less: preferred stock dividends, if applicable
    
    
    n/a
    
    
    
    n/aDeduct: Total stock-based employee compensation expense
determined under fair value based method for all awards, net of
related tax effects
    
    
    (0.2
    )
    
    
    (0.4
    )Pro forma net income for diluted EPS computation
    
    $
    11.6
    
    
    $
    20.4Earnings per share:Basic  as reported
    
    $
    0.26
    
    
    $
    0.45Basic  pro forma
    
    $
    0.26
    
    
    $
    0.44Diluted  as reported
    
    $
    0.23
    
    
    $
    0.41Diluted  pro forma
    
    $
    0.23
    
    
    $
    0.40
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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  June 30,
    
    
    July 1,2006
    
    
    2005Risk-free interest rate (a)
    
    
    4.7%
    
    
    
    3.7%Expected dividend yield (b)
    
    
    N/A
    
    
    
    N/AExpected option life (c)
    4.6 years
    
    5.5 yearsExpected stock price volatility (d)
    
    
    62.6%
    
    
    
    45.3%Weighted average fair value of options granted
    
    $
    12.75
    
    
    $
    5.56
 Risk-free interest rate
 Expected dividend yield
 Expected option life
 Expected stock price volatility
 Earnings Per Share
 Foreign Currency Translation
 Business Combination Accounting
 Inventories
 9




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
   Property, Plant and Equipment
    Goodwill and Other Intangible Assets
  10




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 June 30, 2006
    
    
    December 31, 2005Accumulated
    
    
    
    
    
    
    
    
    
    
    AccumulatedLife
    
    
    Cost
    
    
    Amortization
    
    
    Life
    
    
    Cost
    
    
    AmortizationPatents
    
    
    12
    
    
    $
    1.1
    
    
    $
    *
    
    
    
    
    
    
    $
    
    
    
    $
    Customer Lists
    
    
    10
    
    
    
    0.4
    
    
    
    0.1
    
    
    
    10
    
    
    
    0.4
    
    
    
    *Total
    
    
    
    
    
    $
    1.5
    
    
    $
    0.1
    
    
    
    
    
    
    $
    0.4
    
    
    $
    *
    2006
    
    $
    0.22007
    
    $
    0.22008
    
    $
    0.12009
    
    $
    0.12010
    
    $
    0.1
 Fair Value of Financial Instruments
 Forward Pricing Agreements for Purchases of Copper and Aluminum
 Pension Plans
 Self-insurance
 11




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Concentration of Labor Subject to Collective Bargaining Agreements
 Concentration of Credit Risk
 Income Taxes
    12




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  Derivative Financial Instruments
   Shipping and Handling Costs
 Advertising Expense
 New Standards
 13




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
     3. Acquisitions and Divestitures
   14




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 ® ® ®
  As ofDecember 22, 2005Cash
    
    $
    1.4Accounts receivable
    
    
    113.5Inventories
    
    
    49.1Prepaid expenses and other
    
    
    8.4Property, plant and equipment
    
    
    17.6Other noncurrent assets
    
    
    2.0Total assets
    
    $
    192.0Accounts payable
    
    $
    43.1Accrued liabilities
    
    
    40.0Other liabilities
    
    
    12.0Total liabilities
    
    $
    95.1
   AmortizationEstimated Fair
    
    
    PeriodValue
    
    
    (in years)Patents
    
    $
    1.0
    
    
    
    12.0Total amortizable intangible assets
    
    $
    1.0
    
    
    
    12.0Trademarks
    
    $
    1.0Total intangible assets
    
    $
    2.0
  15




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
   ® ®
 Unaudited Three Fiscal
    
    
    Unaudited Six FiscalMonths Ended
    
    
    Months EndedJune 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005(As reported)
    
    
    (Pro forma)
    
    
    (As reported)
    
    
    (Pro forma)Revenue
    
    $
    987.1
    
    
    $
    680.3
    
    
    $
    1,791.4
    
    
    $
    1,304.0Net income
applicable to
common shareholders
    
    $
    41.4
    
    
    $
    11.2
    
    
    $
    62.7
    
    
    $
    19.2Earnings per common
share  assuming
dilution
    
    $
    0.80
    
    
    $
    0.25
    
    
    $
    1.21
    
    
    $
    0.44
 ® ® ®
  Unaudited Three Fiscal
    
    
    Unaudited Six FiscalMonths Ended
    
    
    Months EndedJune 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005Release of deferred tax valuation allowance
    
    $
    3.7
    
    
    $
    
    
    
    $
    3.7
    
    
    $
    Plant rationalization charges
    
    $
    
    
    
    $
    (3.5
    )
    
    $
    
    
    
    $
    (3.5
    )
   4. Other Income (Expense)
  16




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  5. Inventories
  June 30,
    
    
    December 31,2006
    
    
    2005Raw materials
    
    $
    43.3
    
    
    $
    40.6Work in process
    
    
    78.5
    
    
    
    56.2Finished goods
    
    
    277.4
    
    
    
    267.1Total
    
    $
    399.2
    
    
    $
    363.9
   6. Restructuring Charges
  FacilitySeverance and
    
    
    ClosingRelated Costs
    
    
    Costs
    
    
    TotalBalance, December 31, 2005
    
    $
    1.0
    
    
    $
    0.5
    
    
    $
    1.5Provisions, net
    
    
    (0.2
    )
    
    
    
    
    
    
    (0.2
    )Utilization
    
    
    (0.7
    )
    
    
    (0.3
    )
    
    
    (1.0
    )Balance, June 30, 2006
    
    $
    0.1
    
    
    $
    0.2
    
    
    $
    0.3
  7. Long-Term Debt
  June 30,
    
    
    December 31,2006
    
    
    2005Senior notes due 2010
    
    $
    285.0
    
    
    $
    285.0Revolving loans
    
    
    96.0
    
    
    
    115.1Spanish term loan
    
    
    35.6
    
    
    
    35.4Capital leases
    
    
    4.8
    
    
    
    5.2Other
    
    
    23.9
    
    
    
    10.9Total debt
    
    
    445.3
    
    
    
    451.6Less current maturities
    
    
    20.0
    
    
    
    6.4Long-term debt
    
    $
    425.3
    
    
    $
    445.2
 17




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  Senior notes due 2010
    
    
    9.5
    %
    
    
    9.5
    %Revolving loans
    
    
    6.6
    %
    
    
    6.4
    %Spanish term loan
    
    
    3.7
    %
    
    
    3.4
    %Capital leases
    
    
    6.5
    %
    
    
    6.5
    %Other
    
    
    4.5
    %
    
    
    3.8
    %
        18




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
     ® ®
 
 
     19




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 8. Financial Instruments
         20




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  9. Pension Plans and Other Post-retirement Benefits
     Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005
    
    
    June 30, 2006
    
    
    July 1, 2005Pension
    
    
    Other
    
    
    Pension
    
    
    Other
    
    
    Pension
    
    
    Other
    
    
    Pension
    
    
    OtherService cost
    
    $
    0.8
    
    
    $
    
    
    
    $
    0.7
    
    
    $
    
    
    
    $
    1.5
    
    
    $
    0.1
    
    
    $
    1.2
    
    
    $
    Interest cost
    
    
    2.7
    
    
    
    0.2
    
    
    
    2.5
    
    
    
    0.2
    
    
    
    5.2
    
    
    
    0.3
    
    
    
    4.9
    
    
    
    0.3Expected return on plan assets
    
    
    (2.8
    )
    
    
    
    
    
    
    (2.6
    )
    
    
    
    
    
    
    (5.6
    )
    
    
    
    
    
    
    (5.3
    )
    
    
    Net amortization and deferral
    
    
    1.2
    
    
    
    0.1
    
    
    
    0.9
    
    
    
    
    
    
    
    2.4
    
    
    
    0.1
    
    
    
    1.8
    
    
    
    Curtailment (gain) loss
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    0.7
    
    
    
    (0.2
    )Total defined benefit plans expense
    
    
    1.9
    
    
    
    0.3
    
    
    
    2.2
    
    
    
    
    
    
    
    3.5
    
    
    
    0.5
    
    
    
    3.3
    
    
    
    0.1Total defined contribution plans expense
    
    
    1.9
    
    
    
    
    
    
    
    1.5
    
    
    
    
    
    
    
    4.2
    
    
    
    
    
    
    
    3.3
    
    
    
    Total
    
    $
    3.8
    
    
    $
    0.3
    
    
    $
    3.7
    
    
    $
    
    
    
    $
    7.7
    
    
    $
    0.5
    
    
    $
    6.6
    
    
    $
    0.1
   10. Shareholders Equity
  21




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
     22




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
     June 30,
    
    
    December 31,2006
    
    
    2005Foreign currency translation adjustment
    
    $
    26.2
    
    
    $
    14.2Pension adjustments, net of tax
    
    
    (33.4
    )
    
    
    (33.4
    )Change in fair value of derivatives, net of tax
    
    
    12.6
    
    
    
    8.5Unrealized investment gains
    
    
    5.7
    
    
    
    3.5Other
    
    
    0.4
    
    
    
    0.4Total
    
    $
    11.5
    
    
    $
    (6.8
    )
  June 30,
    
    
    December 31,2006
    
    
    2005Loans to shareholders
    
    $
    
    
    
    $
    Nonvested stock
    
    
    
    
    
    
    (4.8
    )Total
    
    $
    
    
    
    $
    (4.8
    )
  11. Share-Based Compensation
  23




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
       Stock Options
  24




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  WeightedAverageOptions
    
    
    ExerciseOutstanding
    
    
    PriceBalance At December 31, 2005
    
    
    3,144
    
    
    $
    10.90Granted
    
    
    109
    
    
    
    23.24Exercised
    
    
    (1,214
    )
    
    
    12.19Forfeited or Expired
    
    
    (34
    )
    
    
    21.86Balance At June 30, 2006
    
    
    2,005
    
    
    $
    10.61
   Weighted
    
    
    Weighted
    
    
    
    
    
    
    WeightedAverage
    
    
    Average
    
    
    
    
    
    
    AverageRange of
    
    Options
    
    
    Exercise
    
    
    Remaining
    
    
    Options
    
    
    ExerciseOption Prices
    
    Outstanding
    
    
    Price
    
    
    Contractual Life
    
    
    Exercisable
    
    
    Price$0 - $7
    
    
    737
    
    
    $
    4.04
    
    
    6.6 years
    
    
    718
    
    
    $
    4.00$7 - $14
    
    
    923
    
    
    
    11.76
    
    
    5.3 years
    
    
    750
    
    
    
    11.77$14 - $21
    
    
    67
    
    
    
    14.30
    
    
    3.2 years
    
    
    66
    
    
    
    14.28$21 - $28
    
    
    277
    
    
    
    23.32
    
    
    5.0 years
    
    
    168
    
    
    
    23.40$28 - $35
    
    
    1
    
    
    
    31.98
    
    
    9.8 years
    
    
    
    
    
    
    
 Nonvested Stock
    25




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
  WeightedAverageShares
    
    
    Grant DateOutstanding
    
    
    Fair ValueBalance At December 31, 2005
    
    
    743
    
    
    $
    9.90Granted
    
    
    241
    
    
    
    23.06Vested
    
    
    (301
    )
    
    
    9.14Forfeited
    
    
    (1
    )
    
    
    24.49Balance At June 30, 2006
    
    
    682
    
    
    $
    14.70
  12. Earnings Per Common Share
  Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005Earnings per common share  basic:Net income
    
    $
    41.5
    
    
    $
    11.8
    
    
    $
    62.9
    
    
    $
    20.8Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (1.5
    )
    
    
    (0.2
    )
    
    
    (3.0
    )Net income for basic EPS computation (1)
    
    $
    41.4
    
    
    $
    10.3
    
    
    $
    62.7
    
    
    $
    17.8Weighted average shares outstanding for basic EPS
computation (2)
    
    
    50.8
    
    
    
    39.4
    
    
    
    50.4
    
    
    
    39.3Earnings per common share  basic
    
    $
    0.81
    
    
    $
    0.26
    
    
    $
    1.24
    
    
    $
    0.45Earnings per common share  diluted:Net income
    
    $
    41.5
    
    
    $
    11.8
    
    
    $
    62.9
    
    
    $
    20.8Less: preferred stock dividends, if applicable
    
    
    n/a
    
    
    
    n/a
    
    
    
    n/a
    
    
    
    n/aNet income for diluted EPS computation(1)
    
    $
    41.5
    
    
    $
    11.8
    
    
    $
    62.9
    
    
    $
    20.8Weighted average shares outstanding
    
    
    50.8
    
    
    
    39.4
    
    
    
    50.4
    
    
    
    39.3Dilutive effect of stock options and restricted
stock units
    
    
    0.9
    
    
    
    1.2
    
    
    
    0.9
    
    
    
    1.2Dilutive effect of assumed conversion of preferred
stock,
if applicable
    
    
    0.5
    
    
    
    10.3
    
    
    
    0.5
    
    
    
    10.3Weighted average shares outstanding for diluted EPS
computation(2)
    
    
    52.2
    
    
    
    50.9
    
    
    
    51.8
    
    
    
    50.8Earnings per common share  diluted
    
    $
    0.80
    
    
    $
    0.23
    
    
    $
    1.21
    
    
    $
    0.41
   13. Segment Information
  26




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
    Three Fiscal Months EndedIndustrial &Energy
    
    
    Specialty
    
    
    Communications
    
    
    Corporate
    
    
    TotalNet Sales:June 30, 2006
    
    $
    359.5
    
    
    $
    443.1
    
    
    $
    184.5
    
    
    $
    
    
    
    $
    987.1July 1, 2005
    
    
    212.4
    
    
    
    252.1
    
    
    
    144.1
    
    
    
    
    
    
    
    608.6Operating Income (Loss):June 30, 2006
    
    
    25.2
    
    
    
    30.8
    
    
    
    14.4
    
    
    
    
    
    
    
    70.4July 1, 2005
    
    
    15.4
    
    
    
    10.2
    
    
    
    5.9
    
    
    
    (3.5
    )
    
    
    28.0
 Six Fiscal Months EndedIndustrial &Energy
    
    
    Specialty
    
    
    Communications
    
    
    Corporate
    
    
    TotalNet Sales:June 30, 2006
    
    $
    659.6
    
    
    $
    797.3
    
    
    $
    334.5
    
    
    $
    
    
    
    $
    1,791.4July 1, 2005
    
    
    408.9
    
    
    
    493.3
    
    
    
    260.6
    
    
    
    
    
    
    
    1,162.8Operating Income (Loss):June 30, 2006
    
    
    43.7
    
    
    
    50.7
    
    
    
    18.2
    
    
    
    
    
    
    
    112.6July 1, 2005
    
    
    27.7
    
    
    
    19.4
    
    
    
    8.6
    
    
    
    (3.5
    )
    
    
    52.2Identifiable Assets:June 30, 2006
    
    
    583.6
    
    
    
    730.9
    
    
    
    349.1
    
    
    
    160.5
    
    
    
    1,824.1December 31, 2005
    
    
    473.7
    
    
    
    580.8
    
    
    
    301.8
    
    
    
    166.9
    
    
    
    1,523.2
 14. Commitments and Contingencies
   27




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
      ® 
   28




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
     29




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 15. Supplemental Guarantor Information
  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
    )Net income
    
    
    3.2
    
    
    
    14.6
    
    
    
    23.7
    
    
    
    
    
    
    
    41.5Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    3.1
    
    
    $
    14.6
    
    
    $
    23.7
    
    
    $
    
    
    
    $
    41.4
 30




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GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 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)
    
    
    
    
    
    
    (0.3
    )
    
    
    1.3
    
    
    
    
    
    
    
    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
    
    
    
    18.5
    
    
    
    62.1
    
    
    
    
    
    
    
    92.4Income tax provision
    
    
    (4.1
    )
    
    
    (5.4
    )
    
    
    (20.0
    )
    
    
    
    
    
    
    (29.5
    )Net income
    
    
    7.7
    
    
    
    13.1
    
    
    
    42.1
    
    
    
    
    
    
    
    62.9Less: preferred stock dividends
    
    
    (0.2
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )Net income applicable to common
shareholders
    
    $
    7.5
    
    
    $
    13.1
    
    
    $
    42.1
    
    
    $
    
    
    
    $
    62.7
 31




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Condensed Statements of Operations
Three Fiscal Months Ended July 1, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    408.1
    
    
    $
    200.5
    
    
    $
    
    
    
    $
    608.6Intercompany
    
    
    117.6
    
    
    
    
    
    
    
    5.4
    
    
    
    (123.0
    )
    
    
    117.6
    
    
    
    408.1
    
    
    
    205.9
    
    
    
    (123.0
    )
    
    
    608.6Cost of sales
    
    
    101.3
    
    
    
    366.0
    
    
    
    175.5
    
    
    
    (105.5
    )
    
    
    537.3Gross profit
    
    
    16.3
    
    
    
    42.1
    
    
    
    30.4
    
    
    
    (17.5
    )
    
    
    71.3Selling, general and administrative
expenses
    
    
    14.1
    
    
    
    31.5
    
    
    
    15.2
    
    
    
    (17.5
    )
    
    
    43.3Operating income
    
    
    2.2
    
    
    
    10.6
    
    
    
    15.2
    
    
    
    
    
    
    
    28.0Other income (expense)
    
    
    
    
    
    
    (0.2
    )
    
    
    0.2
    
    
    
    
    
    
    
    Interest income (expense):Interest expense
    
    
    (7.3
    )
    
    
    (12.1
    )
    
    
    (0.3
    )
    
    
    9.1
    
    
    
    (10.6
    )Interest income
    
    
    10.0
    
    
    
    (0.1
    )
    
    
    0.7
    
    
    
    (9.1
    )
    
    
    1.52.7
    
    
    
    (12.2
    )
    
    
    0.4
    
    
    
    
    
    
    
    (9.1
    )Income (loss) before income taxes
    
    
    4.9
    
    
    
    (1.8
    )
    
    
    15.8
    
    
    
    
    
    
    
    18.9Income tax provision
    
    
    (1.7
    )
    
    
    (0.3
    )
    
    
    (5.1
    )
    
    
    
    
    
    
    (7.1
    )Net income (loss)
    
    
    3.2
    
    
    
    (2.1
    )
    
    
    10.7
    
    
    
    
    
    
    
    11.8Less: preferred stock dividends
    
    
    (1.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.5
    )Net income (loss) applicable to common
shareholders
    
    $
    1.7
    
    
    $
    (2.1
    )
    
    $
    10.7
    
    
    $
    
    
    
    $
    10.3
 32




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Condensed Statements of Operations
Six Fiscal Months Ended July 1, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    760.0
    
    
    $
    402.8
    
    
    $
    
    
    
    $
    1,162.8Intercompany
    
    
    229.8
    
    
    
    
    
    
    
    10.6
    
    
    
    (240.4
    )
    
    
    229.8
    
    
    
    760.0
    
    
    
    413.4
    
    
    
    (240.4
    )
    
    
    1,162.8Cost of sales
    
    
    199.4
    
    
    
    682.8
    
    
    
    349.8
    
    
    
    (207.9
    )
    
    
    1,024.1Gross profit
    
    
    30.4
    
    
    
    77.2
    
    
    
    63.6
    
    
    
    (32.5
    )
    
    
    138.7Selling, general and administrative expenses
    
    
    26.6
    
    
    
    60.1
    
    
    
    32.3
    
    
    
    (32.5
    )
    
    
    86.5Operating income
    
    
    3.8
    
    
    
    17.1
    
    
    
    31.3
    
    
    
    
    
    
    
    52.2Other income (expense)
    
    
    
    
    
    
    (0.3
    )
    
    
    0.2
    
    
    
    
    
    
    
    (0.1
    )Interest income (expense):Interest expense
    
    
    (14.7
    )
    
    
    (23.7
    )
    
    
    (1.5
    )
    
    
    19.0
    
    
    
    (20.9
    )Interest income
    
    
    19.5
    
    
    
    (0.1
    )
    
    
    1.5
    
    
    
    (19.0
    )
    
    
    1.94.8
    
    
    
    (23.8
    )
    
    
    
    
    
    
    
    
    
    
    (19.0
    )Income (loss) before income taxes
    
    
    8.6
    
    
    
    (7.0
    )
    
    
    31.5
    
    
    
    
    
    
    
    33.1Income tax (provision) benefit
    
    
    (3.0
    )
    
    
    1.1
    
    
    
    (10.4
    )
    
    
    
    
    
    
    (12.3
    )Net income (loss)
    
    
    5.6
    
    
    
    (5.9
    )
    
    
    21.1
    
    
    
    
    
    
    
    20.8Less: preferred stock dividends
    
    
    (3.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.0
    )Net income (loss) applicable to common
shareholders
    
    $
    2.6
    
    
    $
    (5.9
    )
    
    $
    21.1
    
    
    $
    
    
    
    $
    17.8
 33




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##### Table of Contents





GENERAL CABLE CORPORATION AND SUBSIDIARIES


Notes to Condensed Consolidated Financial Statements  (Continued)


Condensed Balance Sheets
June 30, 2006


Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash
    
    $
    0.1
    
    
    $
    9.4
    
    
    $
    49.5
    
    
    $
    
    
    
    $
    59.0Receivables, net of allowances
    
    
    
    
    
    
    254.5
    
    
    
    537.2
    
    
    
    
    
    
    
    791.7Inventories
    
    
    
    
    
    
    185.3
    
    
    
    213.9
    
    
    
    
    
    
    
    399.2Deferred income taxes
    
    
    
    
    
    
    42.2
    
    
    
    5.4
    
    
    
    
    
    
    
    47.6Prepaid expenses and other
    
    
    1.3
    
    
    
    52.0
    
    
    
    16.8
    
    
    
    
    
    
    
    70.1Total current assets
    
    
    1.4
    
    
    
    543.4
    
    
    
    822.8
    
    
    
    
    
    
    
    1,367.6Property, plant and equipment, net
    
    
    0.1
    
    
    
    166.1
    
    
    
    202.5
    
    
    
    
    
    
    
    368.7Deferred income taxes
    
    
    11.9
    
    
    
    36.1
    
    
    
    6.5
    
    
    
    
    
    
    
    54.5Intercompany accounts
    
    
    659.0
    
    
    
    61.1
    
    
    
    128.6
    
    
    
    (848.7
    )
    
    
    Investment in subsidiaries
    
    
    33.7
    
    
    
    203.7
    
    
    
    
    
    
    
    (237.4
    )
    
    
    Other non-current assets
    
    
    7.0
    
    
    
    21.7
    
    
    
    4.6
    
    
    
    
    
    
    
    33.3Total assets
    
    $
    713.1
    
    
    $
    1,032.1
    
    
    $
    1,165.0
    
    
    $
    (1,086.1
    )
    
    $
    1,824.1Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    205.7
    
    
    $
    442.1
    
    
    $
    
    
    
    $
    647.8Accrued liabilities
    
    
    3.4
    
    
    
    74.3
    
    
    
    133.7
    
    
    
    
    
    
    
    211.4Current portion of long-term debt
    
    
    
    
    
    
    0.9
    
    
    
    19.1
    
    
    
    
    
    
    
    20.0Total current liabilities
    
    
    3.4
    
    
    
    280.9
    
    
    
    594.9
    
    
    
    
    
    
    
    879.2Long-term debt
    
    
    285.0
    
    
    
    108.7
    
    
    
    31.6
    
    
    
    
    
    
    
    425.3Deferred income taxes
    
    
    
    
    
    
    2.2
    
    
    
    10.9
    
    
    
    
    
    
    
    13.1Intercompany accounts
    
    
    36.7
    
    
    
    659.6
    
    
    
    152.4
    
    
    
    (848.7
    )
    
    
    Other liabilities
    
    
    22.8
    
    
    
    56.2
    
    
    
    27.4
    
    
    
    
    
    
    
    106.4Total liabilities
    
    
    347.9
    
    
    
    1,107.6
    
    
    
    817.2
    
    
    
    (848.7
    )
    
    
    1,424.0Total shareholders equity (deficit)
    
    
    365.2
    
    
    
    (75.5
    )
    
    
    347.8
    
    
    
    (237.4
    )
    
    
    400.1Total liabilities and shareholders equity
    
    $
    713.1
    
    
    $
    1,032.1
    
    
    $
    1,165.0
    
    
    $
    (1,086.1
    )
    
    $
    1,824.1


34




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Condensed Balance Sheets
December 31, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash
    
    $
    
    
    
    $
    14.5
    
    
    $
    57.7
    
    
    $
    
    
    
    $
    72.2Receivables, net of allowances
    
    
    
    
    
    
    219.3
    
    
    
    323.6
    
    
    
    
    
    
    
    542.9Inventories
    
    
    
    
    
    
    209.2
    
    
    
    154.7
    
    
    
    
    
    
    
    363.9Deferred income taxes
    
    
    
    
    
    
    40.0
    
    
    
    1.9
    
    
    
    
    
    
    
    41.9Prepaid expenses and other
    
    
    1.2
    
    
    
    31.9
    
    
    
    15.5
    
    
    
    
    
    
    
    48.6Total current assets
    
    
    1.2
    
    
    
    514.9
    
    
    
    553.4
    
    
    
    
    
    
    
    1,069.5Property, plant and equipment, net
    
    
    0.2
    
    
    
    206.2
    
    
    
    160.0
    
    
    
    
    
    
    
    366.4Deferred income taxes
    
    
    
    
    
    
    49.6
    
    
    
    2.9
    
    
    
    
    
    
    
    52.5Intercompany accounts
    
    
    616.1
    
    
    
    109.4
    
    
    
    98.7
    
    
    
    (824.2
    )
    
    
    Investment in subsidiaries
    
    
    33.7
    
    
    
    190.3
    
    
    
    
    
    
    
    (224.0
    )
    
    
    Other non-current assets
    
    
    10.6
    
    
    
    23.3
    
    
    
    0.9
    
    
    
    
    
    
    
    34.8Total assets
    
    $
    661.8
    
    
    $
    1,093.7
    
    
    $
    815.9
    
    
    $
    (1,048.2
    )
    
    $
    1,523.2Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    168.6
    
    
    $
    303.7
    
    
    $
    
    
    
    $
    472.3Accrued liabilities
    
    
    3.3
    
    
    
    95.7
    
    
    
    113.2
    
    
    
    
    
    
    
    212.2Current portion of long-term debt
    
    
    
    
    
    
    1.0
    
    
    
    5.4
    
    
    
    
    
    
    
    6.4Total current liabilities
    
    
    3.3
    
    
    
    265.3
    
    
    
    422.3
    
    
    
    
    
    
    
    690.9Long-term debt
    
    
    285.0
    
    
    
    128.3
    
    
    
    31.9
    
    
    
    
    
    
    
    445.2Deferred income taxes
    
    
    1.1
    
    
    
    2.4
    
    
    
    9.9
    
    
    
    
    
    
    
    13.4Intercompany accounts
    
    
    34.5
    
    
    
    698.1
    
    
    
    91.6
    
    
    
    (824.2
    )
    
    
    Other liabilities
    
    
    12.3
    
    
    
    54.3
    
    
    
    13.8
    
    
    
    
    
    
    
    80.4Total liabilities
    
    
    336.2
    
    
    
    1,148.4
    
    
    
    569.5
    
    
    
    (824.2
    )
    
    
    1,229.9Total shareholders equity (deficit)
    
    
    325.6
    
    
    
    (54.7
    )
    
    
    246.4
    
    
    
    (224.0
    )
    
    
    293.3Total liabilities and shareholders equity
    
    $
    661.8
    
    
    $
    1,093.7
    
    
    $
    815.9
    
    
    $
    (1,048.2
    )
    
    $
    1,523.2
 35




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##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Condensed Statements of Cash Flows
Six Fiscal Months Ended June 30, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalCash flows of operating activities:Net income
    
    $
    7.7
    
    
    $
    13.1
    
    
    $
    42.1
    
    
    $
    
    
    
    $
    62.9Adjustment to reconcile net income to
net cash flows of operating activities:Depreciation and amortization
    
    
    2.6
    
    
    
    13.6
    
    
    
    9.3
    
    
    
    
    
    
    
    25.5Foreign currency exchange (gain) loss
    
    
    
    
    
    
    0.3
    
    
    
    (1.3
    )
    
    
    
    
    
    
    (1.0
    )Deferred income taxes
    
    
    (4.3
    )
    
    
    11.5
    
    
    
    (4.6
    )
    
    
    
    
    
    
    2.6Loss on disposal of property
    
    
    
    
    
    
    0.5
    
    
    
    0.3
    
    
    
    
    
    
    
    0.8Changes in operating assets and
liabilities net of effect of acquisitions and
divestitures:Increase in receivables
    
    
    
    
    
    
    (71.5
    )
    
    
    (152.4
    )
    
    
    
    
    
    
    (223.9
    )(Increase) decrease in inventories
    
    
    
    
    
    
    8.7
    
    
    
    (26.0
    )
    
    
    
    
    
    
    (17.3
    )(Increase) decrease in other assets
    
    
    3.6
    
    
    
    (8.9
    )
    
    
    (2.0
    )
    
    
    
    
    
    
    (7.3
    )Increase in accounts payable,
accrued and other liabilities
    
    
    7.4
    
    
    
    54.4
    
    
    
    101.0
    
    
    
    
    
    
    
    162.8Net 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
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    0.3
    
    
    
    
    
    
    
    0.4Acquisitions, net of cash acquired
    
    
    
    
    
    
    
    
    
    
    (13.7
    )
    
    
    
    
    
    
    (13.7
    )Other, net
    
    
    
    
    
    
    1.6
    
    
    
    
    
    
    
    
    
    
    
    1.6Net cash flows of investing activities
    
    
    
    
    
    
    (5.6
    )
    
    
    (28.7
    )
    
    
    
    
    
    
    (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
    
    
    (39.9
    )
    
    
    4.4
    
    
    
    35.5
    
    
    
    
    
    
    
    Net change in revolving credit borrowings
    
    
    
    
    
    
    (19.1
    )
    
    
    
    
    
    
    
    
    
    
    (19.1
    )Net change in other debt
    
    
    
    
    
    
    (0.5
    )
    
    
    10.2
    
    
    
    
    
    
    
    9.7Proceeds from exercise of stock options
    
    
    14.8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    14.8Net cash flows of financing activities
    
    
    (16.9
    )
    
    
    (15.2
    )
    
    
    45.7
    
    
    
    
    
    
    
    13.6Effect of exchange rate changes on cash
    
    
    
    
    
    
    
    
    
    
    2.4
    
    
    
    
    
    
    
    2.4Increase (decrease) in cash
    
    
    0.1
    
    
    
    0.9
    
    
    
    (14.2
    )
    
    
    
    
    
    
    (13.2
    )Cash  beginning of period
    
    
    
    
    
    
    8.5
    
    
    
    63.7
    
    
    
    
    
    
    
    72.2Cash  end of period
    
    $
    0.1
    
    
    $
    9.4
    
    
    $
    49.5
    
    
    $
    
    
    
    $
    59.0
 36




---



##### Table of Contents



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements  (Continued)
 Condensed Statements of Cash Flows
Six Fiscal Months Ended July 1, 200
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalCash flows of operating activities:Net income (loss)
    
    $
    5.6
    
    
    $
    (5.9
    )
    
    $
    21.1
    
    
    $
    
    
    
    $
    20.8Adjustment to reconcile net income (loss) to
net cash flows of operating activities:Depreciation and amortization
    
    
    
    
    
    
    18.5
    
    
    
    3.7
    
    
    
    
    
    
    
    22.2Foreign currency exchange loss
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    0.1Deferred income taxes
    
    
    
    
    
    
    3.5
    
    
    
    (2.5
    )
    
    
    
    
    
    
    1.0Loss on disposal of property
    
    
    
    
    
    
    0.6
    
    
    
    0.1
    
    
    
    
    
    
    
    0.7Changes in operating assets and
liabilities net of effect of acquisitions
and divestitures:Increase in receivables
    
    
    
    
    
    
    (59.4
    )
    
    
    (27.4
    )
    
    
    
    
    
    
    (86.8
    )Increase in inventories
    
    
    
    
    
    
    (18.2
    )
    
    
    (7.4
    )
    
    
    
    
    
    
    (25.6
    )(Increase) decrease in other assets
    
    
    (3.2
    )
    
    
    15.6
    
    
    
    0.1
    
    
    
    
    
    
    
    12.5Increase in accounts payable,
accrued and other liabilities
    
    
    0.1
    
    
    
    31.3
    
    
    
    24.4
    
    
    
    
    
    
    
    55.8Net cash flows of operating activities
    
    
    2.5
    
    
    
    (13.9
    )
    
    
    12.1
    
    
    
    
    
    
    
    0.7Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (6.8
    )
    
    
    (8.9
    )
    
    
    
    
    
    
    (15.7
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    0.1Acquisitions, net of cash acquired
    
    
    
    
    
    
    (7.4
    )
    
    
    
    
    
    
    
    
    
    
    (7.4
    )Other, net
    
    
    
    
    
    
    (0.5
    )
    
    
    
    
    
    
    
    
    
    
    (0.5
    )Net cash flows of investing activities
    
    
    
    
    
    
    (14.6
    )
    
    
    (8.9
    )
    
    
    
    
    
    
    (23.5
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (3.0
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.0
    )Intercompany accounts
    
    
    
    
    
    
    5.0
    
    
    
    (5.0
    )
    
    
    
    
    
    
    Net change in revolving credit borrowings
    
    
    
    
    
    
    26.7
    
    
    
    
    
    
    
    
    
    
    
    26.7Proceeds from other debt
    
    
    
    
    
    
    0.1
    
    
    
    2.6
    
    
    
    
    
    
    
    2.7Proceeds from exercise of stock options
    
    
    0.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.5Net cash flows of financing activities
    
    
    (2.5
    )
    
    
    31.8
    
    
    
    (2.4
    )
    
    
    
    
    
    
    26.9Effect of exchange rate changes on cash
    
    
    
    
    
    
    
    
    
    
    (4.9
    )
    
    
    
    
    
    
    (4.9
    )Increase (decrease) in cash
    
    
    
    
    
    
    3.3
    
    
    
    (4.1
    )
    
    
    
    
    
    
    (0.8
    )Cash  beginning of period
    
    
    0.1
    
    
    
    7.3
    
    
    
    29.0
    
    
    
    
    
    
    
    36.4Cash  end of period
    
    $
    0.1
    
    
    $
    10.6
    
    
    $
    24.9
    
    
    $
    
    
    
    $
    35.6
 37




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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
  
    
    General  a general description of the Companys business, financial information by
geographic regions, raw material price volatility and seasonal trends.
    
    Current Business Environment  the Companys perspective on the challenges it faces and
its relative competitive advantage.
    
    Acquisitions and Divestitures  a brief history of acquisitions and divestitures as
they relate to the financial statements presented.
    
    Critical Accounting Policies and Estimates  a discussion of the accounting policies
that require critical judgments and estimates.
    
    Results of Operations  an analysis of the Companys results of operations for the
financial statement periods presented.
    
    Liquidity and Capital Resources  an analysis of cash flows, sources and uses of cash.
   General
   38




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##### Table of Contents



®
 Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005
    
    
    June 30, 2006
    
    
    July 1, 2005Net sales:
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %North America
    
    $
    579.5
    
    
    
    59
    %
    
    $
    408.1
    
    
    
    67
    %
    
    $
    1,043.7
    
    
    
    58
    %
    
    $
    760.0
    
    
    
    65
    %International
    
    
    407.6
    
    
    
    41
    %
    
    
    200.5
    
    
    
    33
    %
    
    
    747.7
    
    
    
    42
    %
    
    
    402.8
    
    
    
    35
    %Total net sales
    
    $
    987.1
    
    
    
    100
    %
    
    $
    608.6
    
    
    
    100
    %
    
    $
    1,791.4
    
    
    
    100
    %
    
    $
    1,162.8
    
    
    
    100
    %Operating income (loss):North America
    
    $
    42.0
    
    
    
    60
    %
    
    $
    16.3
    
    
    
    52
    %
    
    $
    62.3
    
    
    
    55
    %
    
    $
    24.4
    
    
    
    44
    %International
    
    
    28.4
    
    
    
    40
    %
    
    
    15.2
    
    
    
    48
    %
    
    
    50.3
    
    
    
    45
    %
    
    
    31.3
    
    
    
    56
    %Subtotal
    
    
    70.4
    
    
    
    100
    %
    
    
    31.5
    
    
    
    100
    %
    
    
    112.6
    
    
    
    100
    %
    
    
    55.7
    
    
    
    100
    %Corporate and other operating items
    
    
    
    
    
    
    
    
    
    
    (3.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (3.5
    )Total operating income
    
    $
    70.4
    
    
    
    
    
    
    $
    28.0
    
    
    
    
    
    
    $
    112.6
    
    
    
    
    
    
    $
    52.2
    39




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##### Table of Contents



Current Business Environment
     ®
 40




---



##### Table of Contents



Acquisitions and Divestitures
   ® ® ®
 41




---



##### Table of Contents



As ofDecember 22, 2005Cash
    
    $
    1.4Accounts receivable
    
    
    113.5Inventories
    
    
    49.1Prepaid expenses and other
    
    
    8.4Property, plant and equipment
    
    
    17.6Other noncurrent assets
    
    
    2.0Total assets
    
    $
    192.0Accounts payable
    
    $
    43.1Accrued liabilities
    
    
    40.0Other liabilities
    
    
    12.0Total liabilities
    
    $
    95.1
   AmortizationEstimated Fair
    
    
    PeriodValue
    
    
    (in years)Patents
    
    $
    1.0
    
    
    
    12.0Total amortizable intangible assets
    
    $
    1.0
    
    
    
    12.0Trademarks
    
    $
    1.0Total intangible assets
    
    $
    2.0
    ® ®
 42




---



##### Table of Contents



Unaudited Three Fiscal
    
    
    Unaudited Six FiscalMonths Ended
    
    
    Months EndedJune 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005(As reported)
    
    
    (Pro forma)
    
    
    (As reported)
    
    
    (Pro forma)Revenue
    
    $
    987.1
    
    
    $
    680.3
    
    
    $
    1,791.4
    
    
    $
    1,304.0Net income
applicable to
common shareholders
    
    $
    41.4
    
    
    $
    11.2
    
    
    $
    62.7
    
    
    $
    19.2Earnings per common
share  assuming
dilution
    
    $
    0.80
    
    
    $
    0.25
    
    
    $
    1.21
    
    
    $
    0.44
 ® ® ®
  Unaudited Three Fiscal
    
    
    Unaudited Six FiscalMonths Ended
    
    
    Months EndedJune 30,
    
    
    July 1,
    
    
    June 30,
    
    
    July 1,2006
    
    
    2005
    
    
    2006
    
    
    2005Release of deferred tax valuation allowance
    
    $
    3.7
    
    
    $
    
    
    
    $
    3.7
    
    
    $
    Plant rationalization charges
    
    $
    
    
    
    $
    (3.5
    )
    
    $
    
    
    
    $
    (3.5
    )
   Critical Accounting Policies and Estimates
  43




---



##### Table of Contents



Inventory Costing and Valuation
   Pension Accounting
     Income Taxes
   44




---



##### Table of Contents



Revenue Recognition
  Business Combination Accounting
 ®
 45




---



##### Table of Contents



New Accounting Standards
      46




---



##### Table of Contents



Results of Operations
  Three Fiscal Months Ended
    
    
    Six Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005
    
    
    June 30, 2006
    
    
    July 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %
    
    
    Amount
    
    
    %Net sales
    
    $
    987.1
    
    
    
    100.0
    %
    
    $
    608.6
    
    
    
    100.0
    %
    
    $
    1,791.4
    
    
    
    100.0
    %
    
    $
    1,162.8
    
    
    
    100.0
    %Cost of sales
    
    
    857.6
    
    
    
    86.9
    %
    
    
    537.3
    
    
    
    88.3
    %
    
    
    1,564.3
    
    
    
    87.3
    %
    
    
    1,024.1
    
    
    
    88.1
    %Gross profit
    
    
    129.5
    
    
    
    13.1
    %
    
    
    71.3
    
    
    
    11.7
    %
    
    
    227.1
    
    
    
    12.7
    %
    
    
    138.7
    
    
    
    11.9
    %Selling, general and
administrative
expenses
    
    
    59.1
    
    
    
    6.0
    %
    
    
    43.3
    
    
    
    7.1
    %
    
    
    114.5
    
    
    
    6.4
    %
    
    
    86.5
    
    
    
    7.4
    %Operating income
    
    
    70.4
    
    
    
    7.1
    %
    
    
    28.0
    
    
    
    4.6
    %
    
    
    112.6
    
    
    
    6.3
    %
    
    
    52.2
    
    
    
    4.5
    %Other income (expense)
    
    
    0.2
    
    
    
    
    %
    
    
    
    
    
    
    
    %
    
    
    1.0
    
    
    
    
    %
    
    
    (0.1
    )
    
    
    
    %Interest expense, net
    
    
    (11.6
    )
    
    
    (1.2
    )%
    
    
    (9.1
    )
    
    
    (1.5
    )%
    
    
    (21.2
    )
    
    
    (1.2
    )%
    
    
    (19.0
    )
    
    
    (1.6
    )%Income before income
taxes
    
    
    59.0
    
    
    
    6.0
    %
    
    
    18.9
    
    
    
    3.1
    %
    
    
    92.4
    
    
    
    5.2
    %
    
    
    33.1
    
    
    
    2.9
    %Income tax provision
    
    
    (17.5
    )
    
    
    (1.8
    )%
    
    
    (7.1
    )
    
    
    (1.2
    )%
    
    
    (29.5
    )
    
    
    (1.6
    )%
    
    
    (12.3
    )
    
    
    (1.1
    )%Net income
    
    
    41.5
    
    
    
    4.2
    %
    
    
    11.8
    
    
    
    1.9
    %
    
    
    62.9
    
    
    
    3.5
    %
    
    
    20.8
    
    
    
    1.8
    %Less: preferred stock
dividends
    
    
    (0.1
    )
    
    
    
    %
    
    
    (1.5
    )
    
    
    (0.2
    )%
    
    
    (0.2
    )
    
    
    
    %
    
    
    (3.0
    )
    
    
    (0.3
    )%Net income applicable
to
common shareholders
    
    $
    41.4
    
    
    
    4.2
    %
    
    $
    10.3
    
    
    
    1.7
    %
    
    $
    62.7
    
    
    
    3.5
    %
    
    $
    17.8
    
    
    
    1.5
    %
 Three Fiscal Months Ended June 30, 2006 Compared with Three Fiscal Months Ended July 1, 2005
  Net Sales
   Metal-Adjusted Net SalesThree Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Energy
    
    $
    359.5
    
    
    
    36
    %
    
    $
    272.2
    
    
    
    33
    %Industrial & specialty
    
    
    443.1
    
    
    
    45
    %
    
    
    370.6
    
    
    
    45
    %Communications
    
    
    184.5
    
    
    
    19
    %
    
    
    183.8
    
    
    
    22
    %Total metal-adjusted net sales
    
    
    987.1
    
    
    
    100
    %
    
    
    826.6
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (218.0
    )Total net sales
    
    $
    987.1
    
    
    
    
    
    
    $
    608.6
 47




---



##### Table of Contents



Metal Pounds SoldThree Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005Pounds
    
    
    %
    
    
    Pounds
    
    
    %Energy
    
    
    99.2
    
    
    
    47
    %
    
    
    75.2
    
    
    
    43
    %Industrial & specialty
    
    
    79.3
    
    
    
    37
    %
    
    
    64.0
    
    
    
    37
    %Communications
    
    
    34.0
    
    
    
    16
    %
    
    
    34.7
    
    
    
    20
    %Total metal pounds sold
    
    
    212.5
    
    
    
    100
    %
    
    
    173.9
    
    
    
    100
    %
 ® ® ®
 ®
 ®
  Gross Profit
  48




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##### Table of Contents



Selling, General and Administrative Expense
 ®
 Operating Income
  Operating IncomeThree Fiscal Months Ended,June 30, 2006
    
    
    July 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Energy
    
    $
    25.2
    
    
    
    36
    %
    
    $
    15.4
    
    
    
    49
    %Industrial & specialty
    
    
    30.8
    
    
    
    44
    %
    
    
    10.2
    
    
    
    32
    %Communications
    
    
    14.4
    
    
    
    20
    %
    
    
    5.9
    
    
    
    19
    %Subtotal excluding corporate charges
    
    
    70.4
    
    
    
    100
    %
    
    
    31.5
    
    
    
    100
    %Corporate charges
    
    
    
    
    
    
    
    
    
    
    (3.5
    )Total operating income
    
    $
    70.4
    
    
    
    
    
    
    $
    28.0
 ®
 Other Income (Expense)
  Interest Expense
 ®
 Tax Provision
  Preferred Stock Dividends
  49




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##### Table of Contents



Six Fiscal Months Ended June 30, 2006 Compared with Six Fiscal Months Ended July 1, 2005
  Net Sales
  Metal-Adjusted Net SalesSix Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Energy
    
    $
    659.6
    
    
    
    37
    %
    
    $
    495.5
    
    
    
    34
    %Industrial & specialty
    
    
    797.3
    
    
    
    45
    %
    
    
    659.2
    
    
    
    45
    %Communications
    
    
    334.5
    
    
    
    18
    %
    
    
    323.6
    
    
    
    21
    %Total metal-adjusted net sales
    
    
    1,791.4
    
    
    
    100
    %
    
    
    1,478.3
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (315.5
    )Total net sales
    
    $
    1,791.4
    
    
    
    
    
    
    $
    1,162.8
 Metal Pounds SoldSix Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005Pounds
    
    
    %
    
    
    Pounds
    
    
    %Energy
    
    
    188.7
    
    
    
    46
    %
    
    
    145.8
    
    
    
    44
    %Industrial & specialty
    
    
    159.6
    
    
    
    39
    %
    
    
    124.4
    
    
    
    37
    %Communications
    
    
    65.8
    
    
    
    15
    %
    
    
    64.2
    
    
    
    19
    %Total metal pounds sold
    
    
    414.1
    
    
    
    100
    %
    
    
    334.4
    
    
    
    100
    %
 ® ® ®
  50




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##### Table of Contents



®
 ®
  Gross Profit
  Selling, General and Administrative Expense
 ®
 Operating Income
  Operating IncomeSix Fiscal Months Ended,June 30, 2006
    
    
    July 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Energy
    
    $
    43.7
    
    
    
    39
    %
    
    $
    27.7
    
    
    
    50
    %Industrial & specialty
    
    
    50.7
    
    
    
    45
    %
    
    
    19.4
    
    
    
    35
    %Communications
    
    
    18.2
    
    
    
    16
    %
    
    
    8.6
    
    
    
    15
    %Subtotal excluding corporate charges
    
    
    112.6
    
    
    
    100
    %
    
    
    55.7
    
    
    
    100
    %Corporate charges
    
    
    
    
    
    
    
    
    
    
    (3.5
    )Total operating income
    
    $
    112.6
    
    
    
    
    
    
    $
    52.2
  51




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##### Table of Contents



®
 Other Income (Expense)
  Interest Expense
 ®
 Tax Provision
  Preferred Stock Dividends
  Liquidity and Capital Resources
    Six Fiscal Months EndedJune 30, 2006
    
    
    July 1, 2005North America
    
    $
    22.1
    
    
    $
    (11.4
    )International
    
    
    (17.0
    )
    
    
    12.1Total
    
    $
    5.1
    
    
    $
    0.7
  52




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##### Table of Contents



® ®
          53




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##### Table of Contents



 ® ®
 
 
    54




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##### Table of Contents



Payments Due by PeriodLess than
    
    
    1 - 3
    
    
    4 - 5
    
    
    After 5Total
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    YearsContractual obligations:Total debt (excluding capital leases)
    
    $
    440.5
    
    
    $
    19.0
    
    
    $
    11.6
    
    
    $
    392.5
    
    
    $
    17.4Capital leases
    
    
    4.8
    
    
    
    1.0
    
    
    
    2.1
    
    
    
    1.7
    
    
    
    Interest payments on Senior Notes
    
    
    121.8
    
    
    
    27.1
    
    
    
    54.2
    
    
    
    40.5
    
    
    
    Preferred stock dividend payments
    
    
    2.2
    
    
    
    0.3
    
    
    
    0.6
    
    
    
    0.6
    
    
    
    0.7Operating leases
    
    
    23.8
    
    
    
    5.9
    
    
    
    8.7
    
    
    
    5.3
    
    
    
    3.9Commodity futures and forward pricing
agreements
    
    
    354.4
    
    
    
    354.2
    
    
    
    0.2
    
    
    
    
    
    
    
    Foreign currency contracts
    
    
    123.5
    
    
    
    123.0
    
    
    
    0.5
    
    
    
    
    
    
    
    Cross currency and interest rate swap
    
    
    178.4
    
    
    
    12.0
    
    
    
    166.4
    
    
    
    
    
    
    
    Total
    
    $
    1,249.4
    
    
    $
    542.5
    
    
    $
    244.3
    
    
    $
    440.6
    
    
    $
    22.0
   55




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##### Table of Contents



Off Balance Sheet Assets and Obligations
 ®
   56




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##### Table of Contents



Environmental Matters
 ®
 
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
   June 30, 2006
    
    
    December 31, 2005Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.2
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Foreign currency forward exchange
    
    
    123.5
    
    
    
    0.8
    
    
    
    43.1
    
    
    
    0.3Commodity futures
    
    
    155.7
    
    
    
    29.0
    
    
    
    39.9
    
    
    
    11.6Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (10.6
    )
    
    
    150.0
    
    
    
    2.6$
    19.0
    
    
    
    
    
    
    $
    14.1
  57




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##### Table of Contents



Item 4. Controls and Procedures
 Disclosure Controls and Procedures
 .
 .
  Changes in Internal Control Over Financial Reporting
   PART II. Other Information
 
 Item 1A. Risk Factors
  58




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##### Table of Contents



Item 4. Submission of Matters to a Vote of Security Holders
  a)
    
    Election of Directors:
 For
    
    
    AgainstGregory E. Lawton
    
    
    44,746,639
    
    
    
    257,874Craig P. Omtvedt
    
    
    44,746,639
    
    
    
    257,874
  b)
    
    Ratification of appointment of Deloitte & Touche LLP to audit the 2006 consolidated
financial statements of General Cable. Votes for  44,106,442; votes against  61,384; and
abstentions  836,687.
 
 Item 6. Exhibits
  a)
    
    Exhibits
 **10.86
    

Entry of Executive Vice President, General Counsel and Secretary into a Rule 10b5-1
Trading Plan dated May 8, 2006 (incorporated by reference to the Form 8-K Current
Report as filed on May 8, 2006).**10.87
    
    Press Release Announcing Departure of Chief Financial Officer dated May 10, 2006
(incorporated by reference to the Form 8-K Current Report as filed on May 15, 2006).**10.88
    
    Separation Agreement and General Release of Claims and Amendment to the Separation
Agreement and General Release of Claims between General Cable Corporation and its
Chief Financial Officer dated May 30, 2006 (incorporated by reference to exhibit 99.1
to the Form 8-K Current Report as filed on June 2, 2006).*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(a)*31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a  14(a) or 15d  14(a)*32.1
    
    Certification pursuant to 18 U.S.C. Section 1350
 59




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##### Table of Contents



Signature
  General Cable CorporationSigned: August 9, 2006
    
    By:
    
    /s/ CHRISTOPHER F. VIRGULAK
Christopher F. Virgulak
Executive Vice President and
Chief Financial Officer
(Chief Accounting Officer)
 60




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##### Table of Contents



Exhibit Index
 10.86
    
    Entry of Executive Vice President, General Counsel and Secretary into a Rule 10b5-1
Trading Plan dated May 8, 2006 (incorporated by reference to the Form 8-K Current
Report as filed on May 8, 2006).10.87
    
    Press Release Announcing Departure of Chief Financial Officer dated May 10, 2006
(incorporated by reference to the Form 8-K Current Report as filed on May 15, 2006).10.88
    
    Separation Agreement and General Release of Claims and Amendment to the Separation
Agreement and General Release of Claims between General Cable Corporation and its
Chief Financial Officer dated May 30, 2006 (incorporated by reference to exhibit 99.1
to the Form 8-K Current Report as filed on June 2, 2006).12.1
    
    Computation of Ratio of Earnings to Fixed Charges31.1
    
    Certification of Chief Executive Officer pursuant to Rule 13a  14(a) or 15d  14(a)31.2
    
    Certification of Chief Financial Officer pursuant to Rule 13a  14(a) or 15d  14(a)32.1
    
    Certification pursuant to 18 U.S.C. Section 1350
 61