##### 



UNITED STATES SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q/A
 Amendment No. 1
 (Mark One)
 þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended March 31, 2006
 OR
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to.
 Commission file number: 1-12983
 GENERAL CABLE CORPORATION
  Delaware(State or other jurisdiction of 
incorporation or organization)
    
    06-1398235(I.R.S. Employer Identification No.)4 Tesseneer Drive 
Highland Heights, KY(Address of principal executive offices)
    
    41076-9753(Zip Code)
 Registrants telephone number, including area code: (859) 572-8000
 þ o
  o þ o
 o þ
  Class
    
    Outstanding at May 1, 2006Common Stock, $0.01 per value
    
    50,544,232




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
INDEX TO QUARTERLY REPORT
ON FORM 10-Q/A
 PAGEExplanatory Note
    
    
    3PART I Financial InformationItem 1. Condensed Consolidated Financial Statements (Unaudited)
Statements of Operations -For the three fiscal months ended March 31, 2006 and April 1, 2005
    
    
    4Balance Sheets -March 31, 2006 and December 31, 2005
    
    
    5Statements of Cash Flows -For the three fiscal months ended March 31, 2006 and April 1, 2005
    
    
    6Statements of Changes in Shareholders Equity -For the three fiscal months ended March 31, 2006 and April 1, 2005
    
    
    7Notes to Condensed Consolidated Financial Statements
    
    
    8Item 2. Managements Discussion and Analysis of Financial Condition
    
    
    37and Results of OperationsItem 3. Quantitative and Qualitative Disclosures about Market Risk
    
    
    54Item 4. Controls and Procedures
    
    
    55PART II Other InformationItem 1A. Risk Factors
    
    
    56Item 6. Exhibits
    
    
    56Signature
    
    
    57Index to Exhibits
    
    
    58
 2




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##### 



EXPLANATORY NOTE
   3




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in millions, except per share data)
 (unaudited)
 Three Fiscal Months EndedMarch 31,
    
    
    April 1,2006
    
    
    2005Net sales
    
    $
    804.3
    
    
    $
    554.2Cost of sales
    
    
    706.7
    
    
    
    486.8Gross profit
    
    
    97.6
    
    
    
    67.4Selling, general and administrative expenses
    
    
    55.4
    
    
    
    43.2Operating income
    
    
    42.2
    
    
    
    24.2Other income (expense)
    
    
    0.8
    
    
    
    (0.1
    )Interest income (expense):Interest expense
    
    
    (10.1
    )
    
    
    (10.3
    )Interest income
    
    
    0.5
    
    
    
    0.4(9.6
    )
    
    
    (9.9
    )Income before income taxes
    
    
    33.4
    
    
    
    14.2Income tax provision
    
    
    (12.0
    )
    
    
    (5.2
    )Net income
    
    
    21.4
    
    
    
    9.0Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (1.5
    )Net income applicable to common shareholders
    
    $
    21.3
    
    
    $
    7.5Earnings per shareEarnings per common share-basic
    
    $
    0.43
    
    
    $
    0.19Weighted average common shares-basic
    
    
    50.0
    
    
    
    39.2Earnings per common share-assuming dilution
    
    $
    0.41
    
    
    $
    0.18Weighted average common shares-assuming dilution
    
    
    51.6
    
    
    
    50.7
  4




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in millions, except share data)
 (unaudited)
 March 31,
    
    
    December 31,2006
    
    
    2005AssetsCurrent Assets:Cash
    
    $
    63.0
    
    
    $
    72.2Receivables, net of allowances of $10.8 million at March 31, 2006 and
$8.6 million at December 31, 2005
    
    
    633.6
    
    
    
    542.9Inventories
    
    
    389.0
    
    
    
    363.9Deferred income taxes
    
    
    41.9
    
    
    
    41.9Prepaid expenses and other
    
    
    46.6
    
    
    
    48.6Total current assets
    
    
    1,174.1
    
    
    
    1,069.5Property, plant and equipment, net
    
    
    367.9
    
    
    
    366.4Deferred income taxes
    
    
    52.5
    
    
    
    52.5Other non-current assets
    
    
    35.5
    
    
    
    34.8Total assets
    
    $
    1,630.0
    
    
    $
    1,523.2Liabilities and Shareholders EquityCurrent Liabilities:Accounts payable
    
    $
    538.1
    
    
    $
    472.3Accrued liabilities
    
    
    189.3
    
    
    
    212.2Current portion of long-term debt
    
    
    7.1
    
    
    
    6.4Total current liabilities
    
    
    734.5
    
    
    
    690.9Long-term debt
    
    
    465.2
    
    
    
    445.2Deferred income taxes
    
    
    12.9
    
    
    
    13.4Other liabilities
    
    
    88.7
    
    
    
    80.4Total liabilities
    
    
    1,301.3
    
    
    
    1,229.9Shareholders Equity:Redeemable convertible preferred stock, at redemption value
(liquidation preference of $50.00 per share):March 31, 2006  101,949 outstanding shares
December 31, 2005  129,916 outstanding shares
    
    
    5.1
    
    
    
    6.5Common stock, $0.01 par value, issued and outstanding shares:March 31, 2006  50,425,943 (net of 4,991,105 treasury shares)
December 31, 2005  49,520,209 (net of 4,968,755 treasury shares)
    
    
    0.5
    
    
    
    0.5Additional paid-in capital
    
    
    253.2
    
    
    
    246.3Treasury stock
    
    
    (52.7
    )
    
    
    (52.2
    )Retained earnings
    
    
    125.1
    
    
    
    103.8Accumulated other comprehensive loss
    
    
    (2.5
    )
    
    
    (6.8
    )Other shareholders equity
    
    
    
    
    
    
    (4.8
    )Total shareholders equity
    
    
    328.7
    
    
    
    293.3Total liabilities and shareholders equity
    
    $
    1,630.0
    
    
    $
    1,523.2
  5




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(in millions)
 (unaudited)
 Three Fiscal Months EndedMarch 31,
    
    
    April 1,2006
    
    
    2005Cash flows of operating activities:Net income
    
    $
    21.4
    
    
    $
    9.0Adjustments to reconcile net income to net cash flows of
operating activities:Depreciation and amortization
    
    
    12.5
    
    
    
    9.0Foreign currency exchange (gain) loss
    
    
    (0.8
    )
    
    
    0.1Deferred income taxes
    
    
    2.7
    
    
    
    (1.1
    )Loss on disposal of property
    
    
    0.7
    
    
    
    0.3Changes in operating assets and liabilities, net of effect of
acquisitions and divestitures:Increase in receivables
    
    
    (86.4
    )
    
    
    (30.3
    )Increase in inventories
    
    
    (15.7
    )
    
    
    (24.3
    )Decrease in other assets
    
    
    3.2
    
    
    
    13.1Increase in accounts payable, accrued and other liabilities
    
    
    32.2
    
    
    
    19.1Net cash flows of operating activities
    
    
    (30.2
    )
    
    
    (5.1
    )Cash flows of investing activities:Capital expenditures
    
    
    (8.0
    )
    
    
    (7.2
    )Proceeds from properties sold
    
    
    0.4
    
    
    
    Acquisitions, net of cash acquired
    
    
    
    
    
    
    (7.5
    )Other, net
    
    
    (0.8
    )
    
    
    (0.3
    )Net cash flows of investing activities
    
    
    (8.4
    )
    
    
    (15.0
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.1
    )
    
    
    (1.5
    )Excess tax benefits from stock-based compensation
    
    
    3.3
    
    
    
    Proceeds from revolving credit borrowings
    
    
    71.3
    
    
    
    78.4Repayments of revolving credit borrowings
    
    
    (52.1
    )
    
    
    (58.3
    )Proceeds of other debt
    
    
    0.6
    
    
    
    1.0Proceeds from exercise of stock options
    
    
    6.1
    
    
    
    0.2Net cash flows of financing activities
    
    
    29.1
    
    
    
    19.8Effect of exchange rate changes on cash
    
    
    0.3
    
    
    
    (1.6
    )Decrease in cash
    
    
    (9.2
    )
    
    
    (1.9
    )Cash  beginning of period
    
    
    72.2
    
    
    
    36.4Cash  end of period
    
    $
    63.0
    
    
    $
    34.5Supplemental InformationCash paid during the period for:Income tax payments, net of refunds
    
    $
    5.8
    
    
    $
    (2.8
    )Interest paid
    
    $
    3.1
    
    
    $
    2.4Non-cash investing and financing activities:Issuance of nonvested shares
    
    $
    5.3
    
    
    $
    1.5Entrance into capital leases
    
    $
    0.1
    
    
    $
    
  6




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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 income:Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    9.0
    
    
    
    
    
    
    
    
    
    
    
    9.0Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8.4
    )
    
    
    
    
    
    
    (8.4
    )Unrealized investment
loss
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.4
    )
    
    
    
    
    
    
    (0.4
    )Gain on change in fair
value of
financial instruments, net of
$0.4 tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    0.6Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.8Preferred stock dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.5
    )
    
    
    
    
    
    
    
    
    
    
    (1.5
    )Issuance of nonvested shares
    
    
    
    
    
    
    
    
    
    
    129
    
    
    
    
    
    
    
    1.5
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.5
    )
    
    
    Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    23
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2Amortization of nonvested shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    0.2Other
    
    
    
    
    
    
    
    
    
    
    10
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    0.5
    
    
    
    
    
    
    
    (0.1
    )
    
    
    0.6Balance, April 1, 2005
    
    
    2,070
    
    
    $
    103.5
    
    
    
    39,498
    
    
    $
    0.4
    
    
    $
    146.0
    
    
    $
    (51.0
    )
    
    $
    94.4
    
    
    $
    14.2
    
    
    $
    (5.8
    )
    
    $
    301.7Balance, 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
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    21.4
    
    
    
    
    
    
    
    
    
    
    
    21.4Foreign currency
translation
adjustment
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.2
    )
    
    
    
    
    
    
    (0.2
    )Unrealized investment
gain
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1.6
    
    
    
    
    
    
    
    1.6Gain on change in fair
value of
financial instruments, net of $1.7
tax expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2.9
    
    
    
    
    
    
    
    2.9Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    25.7Preferred stock dividend
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Reclass of unearned stock
compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4.8
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4.8
    
    
    
    Issuance of nonvested shares
    
    
    
    
    
    
    
    
    
    
    213
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Stock option expense
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2Exercise of stock options
    
    
    
    
    
    
    
    
    
    
    564
    
    
    
    
    
    
    
    6.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.1Treasury shares related to nonvested
stock vesting
    
    
    
    
    
    
    
    
    
    
    (22
    )
    
    
    
    
    
    
    
    
    
    
    (0.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.5
    )Amortization of nonvested shares
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.6Excess tax benefits from
stock-based compensation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.3Conversion of preferred stock
    
    
    (28
    )
    
    
    (1.4
    )
    
    
    140
    
    
    
    
    
    
    
    1.4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    
    
    
    
    
    
    
    
    11
    
    
    
    
    
    
    
    0.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.1Balance, March 31, 2006
    
    
    102
    
    
    $
    5.1
    
    
    
    50,426
    
    
    $
    0.5
    
    
    $
    253.2
    
    
    $
    (52.7
    )
    
    $
    125.1
    
    
    $
    (2.5
    )
    
    $
    
    
    
    $
    328.7
  7




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)
 1. General
  2. Summary of Accounting Policies
 Principles of Consolidation
  Basis of Presentation
  Use of Estimates
  Revenue Recognition
 8
       GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
  Stock-Based Compensation
   Three FiscalMonths EndedApril 1, 2005Net income as reported
    
    $
    9.0Less: preferred stock dividends
    
    
    (1.5
    )Deduct: Total stock-based employee compensation expense
determined under fair value based method for all awards, net of
related tax effects
    
    
    (0.2
    )Pro forma net income for basic EPS computation
    
    $
    7.3Net income as reported
    
    $
    9.0Less: preferred stock dividends, if applicable
    
    
    Deduct: Total stock-based employee compensation expense
determined under fair value based method for all awards, net of
related tax effects
    
    
    (0.2
    )Pro forma net income for diluted EPS computation
    
    $
    8.8Earnings per share:Basic  as reported
    
    $
    0.19Basic  pro forma
    
    $
    0.19Diluted  as reported
    
    $
    0.18Diluted  pro forma
    
    $
    0.17
 9




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
  March 31,
    
    
    April 1,2006
    
    
    2005Risk-free interest rate (a)
    
    
    4.7
    %
    
    
    4.4
    %Expected dividend yield (b)
    
    
    N/A
    
    
    
    N/AExpected option life (c)
    
    4.6 years
    
    6.5 yearsExpected stock price volatility (d)
    
    
    62.6
    %
    
    
    32.1
    %Weighted average fair value of options granted
    
    $
    12.73
    
    
    $
    4.52
 
 (a)
    
    Risk-free interest rate This is the U.S. Treasury rate at the end of the quarter in which
the option was granted having a term approximately equal to the expected life of the option. An
increase in the risk-free interest rate will increase compensation expense.(b)
    
    Expected dividend yield The Company has not made any dividend payments on common stock nor
does it have plans to pay dividends on common stock in the foreseeable future. Any dividends paid
in the future will decrease compensation expense.(c)
    
    Expected option life This is the period of time over which the options granted are expected
to remain outstanding and is based on historical experience. Options granted have a maximum term
of ten years. An increase in expected life will increase compensation expense.(d)
    
    Expected stock price volatility This is a measure of the amount by which a price has
fluctuated or is expected to fluctuate. The Company uses actual historical changes in the market
value of the Companys stock to calculate the volatility assumption as it is managements belief
that this is the best indicator of future volatility. An increase in the expected volatility will
increase compensation expense. Earnings Per Share
  Foreign Currency Translation
  Business Combination Accounting
  Inventories
 10
       GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
   Property, Plant and Equipment
     Goodwill and Other Intangible Assets
  11




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
  March 31, 2006
    
    
    December 31, 2005Accumulated
    
    
    
    
    
    
    
    
    
    
    AccumulatedLife
    
    
    Cost
    
    
    Amortization
    
    
    Life
    
    
    Cost
    
    
    AmortizationPatents
    
    
    12
    
    
    $
    1.8
    
    
    $
    *
    
    
    
    
    
    
    $
    
    
    
    $
    Customer Lists
    
    
    10
    
    
    
    0.4
    
    
    
    0.1
    
    
    
    10
    
    
    
    0.4
    
    
    
    *Total
    
    
    
    
    
    $
    2.2
    
    
    $
    0.1
    
    
    
    
    
    
    $
    0.4
    
    
    $
    *
 
 *
    
    Not significant during this period   2006
    
    $
    0.22007
    
    $
    0.22008
    
    $
    0.22009
    
    $
    0.22010
    
    $
    0.2
 Fair Value of Financial Instruments
  Forward Pricing Agreements for Purchases of Copper and Aluminum
  Pension Plans
  Self-insurance
  12




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##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 Concentration of Labor Subject to Collective Bargaining Agreements
  Concentration of Credit Risk
  Income Taxes
     13




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 Derivative Financial Instruments
    Shipping and Handling Costs
  Advertising Expense
  New Standards
   14




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 3. Acquisitions and Divestitures
  ® ® ®
  As ofDecember 22, 2005Cash
    
    $
    1.4Accounts receivable
    
    
    113.5Inventories
    
    
    49.1Prepaid expenses and other
    
    
    8.4Property, plant and equipment
    
    
    24.5Other noncurrent assets
    
    
    2.8Total assets
    
    $
    199.7Accounts payable
    
    $
    43.1Accrued liabilities
    
    
    48.1Other liabilities
    
    
    12.0Total liabilities
    
    $
    103.2
   15




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 AmortizationEstimated Fair
    
    
    PeriodValue
    
    
    (in years)Patents
    
    $
    1.4
    
    
    
    12.0Total amortizable intangible assets
    
    $
    1.4
    
    
    
    12.0Trademarks
    
    $
    1.3Total intangible assets
    
    $
    2.7
    ® ®
 Unaudited Three FiscalMonths EndedMarch 31,
    
    
    April 1,2006
    
    
    2005(As reported)
    
    
    (Pro forma)Revenue
    
    $
    804.3
    
    
    $
    628.2Net income applicable to common shareholders
    
    $
    21.3
    
    
    $
    8.0Earnings per common share  assuming
dilution
    
    $
    0.41
    
    
    $
    0.19
 ® ® ®
   16




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 4. Other Income (Expense)
  5. Inventories
  March 31,
    
    
    December 31,2006
    
    
    2005Raw materials
    
    $
    40.9
    
    
    $
    40.6Work in process
    
    
    72.7
    
    
    
    56.2Finished goods
    
    
    275.4
    
    
    
    267.1Total
    
    $
    389.0
    
    
    $
    363.9
   6. Restructuring Charges
  Severance and
    
    
    FacilityRelated Costs
    
    
    Closing Costs
    
    
    TotalBalance, December 31, 2005
    
    $
    1.0
    
    
    $
    0.5
    
    
    $
    1.5Provisions, net
    
    
    (0.2
    )
    
    
    
    
    
    
    (0.2
    )Utilization
    
    
    (0.4
    )
    
    
    (0.2
    )
    
    
    (0.6
    )Balance, March 31, 2006
    
    $
    0.4
    
    
    $
    0.3
    
    
    $
    0.7
  17




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
 7. Long-Term Debt
  March 31,
    
    
    December 31,2006
    
    
    2005Senior notes due 2010
    
    $
    285.0
    
    
    $
    285.0Revolving loans
    
    
    134.3
    
    
    
    115.1Spanish term loan
    
    
    36.4
    
    
    
    35.4Capital leases
    
    
    5.3
    
    
    
    5.2Other
    
    
    11.3
    
    
    
    10.9Total debt
    
    
    472.3
    
    
    
    451.6Less current maturities
    
    
    7.1
    
    
    
    6.4Long-term debt
    
    $
    465.2
    
    
    $
    445.2Weighted average interest rates on the above outstanding balances were as follows:Senior notes due 2010
    
    
    9.5
    %
    
    
    9.5
    %Revolving loans
    
    
    6.3
    %
    
    
    6.4
    %Spanish term loan
    
    
    3.7
    %
    
    
    3.4
    %Capital leases
    
    
    6.5
    %
    
    
    6.5
    %Other
    
    
    3.8
    %
    
    
    3.8
    %
       18




---



##### 



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




---



##### 



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




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
  9. Pension Plans and Other Post-retirement Benefits
     Three Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Pension
    
    
    Other
    
    
    Pension
    
    
    OtherService cost
    
    $
    0.7
    
    
    $
    0.1
    
    
    $
    0.5
    
    
    $
    Interest cost
    
    
    2.5
    
    
    
    0.1
    
    
    
    2.4
    
    
    
    0.1Expected return on plan assets
    
    
    (2.8
    )
    
    
    
    
    
    
    (2.7
    )
    
    
    Net amortization and deferral
    
    
    1.2
    
    
    
    
    
    
    
    0.9
    
    
    
    Total defined benefit plans expense
    
    
    1.6
    
    
    
    0.2
    
    
    
    1.1
    
    
    
    0.1Total defined contribution plans expense
    
    
    2.3
    
    
    
    
    
    
    
    1.8
    
    
    
    Total
    
    $
    3.9
    
    
    $
    0.2
    
    
    $
    2.9
    
    
    $
    0.1
   10. Shareholders Equity
   21




---



##### 



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




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)-(Continued)
    March 31,
    
    
    December 31,2006
    
    
    2005Foreign currency translation adjustment
    
    $
    14.0
    
    
    $
    14.2Pension adjustments, net of tax
    
    
    (33.4
    )
    
    
    (33.4
    )Change in fair value of derivatives, net of tax
    
    
    11.4
    
    
    
    8.5Unrealized investment gains
    
    
    5.1
    
    
    
    3.5Other
    
    
    0.4
    
    
    
    0.4Total
    
    $
    (2.5
    )
    
    $
    (6.8
    )
  11. Share-Based Compensation
   23




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited) (Continued)
     Stock Options
   WeightedAverageOptions
    
    
    ExerciseOutstanding
    
    
    PriceBalance At December 31, 2005
    
    
    3,144
    
    
    $
    10.90Granted
    
    
    109
    
    
    
    23.18Exercised
    
    
    (564
    )
    
    
    10.83Forfeited or Expired
    
    
    (22
    )
    
    
    21.86Balance At March 31, 2006
    
    
    2,667
    
    
    $
    11.29
  24




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  WeightedWeighted
    
    Average
    
    
    
    
    
    WeightedRange of
    
    Options
    
    Average
    
    Remaining
    
    Options
    
    AverageOption Prices
    
    Outstanding
    
    Exercise Price
    
    Contractual Life
    
    Exercisable
    
    Exercise Price$0 - $7
    
    
    847
    
    
    $
    4.03
    
    
    6.8 years
    
    
    828
    
    
    $
    4.00$7 - $14
    
    
    1,282
    
    
    
    11.92
    
    
    4.8 years
    
    
    1,108
    
    
    
    11.95$14 - $21
    
    
    115
    
    
    
    14.25
    
    
    3.4 years
    
    
    115
    
    
    
    14.24$21 - $28
    
    
    423
    
    
    
    23.09
    
    
    4.3 years
    
    
    314
    
    
    
    23.06
 Nonvested Stock
     WeightedAverageShares
    
    
    Grant DateOutstanding
    
    
    Fair ValueBalance At December 31, 2005
    
    
    743
    
    
    $
    9.90Granted
    
    
    229
    
    
    
    23.48Vested
    
    
    (262
    )
    
    
    8.73Forfeited
    
    
    
    
    
    
    Balance At March 31, 2006
    
    
    710
    
    
    $
    14.72
  25




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 12. Earnings Per Common Share
  Three Fiscal Months EndedMarch 31,
    
    
    April 1,2006
    
    
    2005Earnings per common share  basic:Net income
    
    $
    21.4
    
    
    $
    9.0Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    (1.5
    )Net income for basic EPS computation (1)
    
    $
    21.3
    
    
    $
    7.5Weighted average shares outstanding for basic EPS
computation (2)
    
    
    50.0
    
    
    
    39.2Earnings per common share  basic
    
    $
    0.43
    
    
    $
    0.19Earnings per common share  diluted:Net income
    
    $
    21.4
    
    
    $
    9.0Less: preferred stock dividends, if applicable
    
    
    (0.1
    )
    
    
    Net income for diluted EPS computation(1)
    
    $
    21.3
    
    
    $
    9.0Weighted average shares outstanding
    
    
    50.0
    
    
    
    39.2Dilutive effect of stock options and restricted stock units
    
    
    1.1
    
    
    
    1.2Dilutive effect of assumed conversion of preferred stock,
if applicable
    
    
    0.5
    
    
    
    10.3Weighted average shares outstanding for diluted EPS
computation(2)
    
    
    51.6
    
    
    
    50.7Earnings per common share  diluted
    
    $
    0.41
    
    
    $
    0.18
 
 (1)
    
    Numerator(2)
    
    Denominator  13. Segment Information (As Restated)
   26




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  Previous ReportableOperating Segments
    
    Segments
    
    Current Reportable SegmentsNorth American Utility
    
    Energy
    
    North American Electric UtilityEuropean Utility
    
    Energy
    
    International Electric UtilityAsia Pacific Utility
    
    Energy
    
    International Electric UtilityPortable Cord & Electronics
    
    Industrial & Specialty
    
    North American Portable Power and ControlIndustrial Products
    
    Industrial & Specialty
    
    North American Electrical InfrastructureEuropean Industrial & Specialty Cables
    
    Industrial & Specialty
    
    International Electrical InfrastructureAsia Pacific Industrial & Specialty Cables
    
    Industrial & Specialty
    
    International Electrical InfrastructureAutomotive Products
    
    Industrial & Specialty
    
    Transportation and Industrial HarnessesAssemblies
    
    Industrial & Specialty
    
    Transportation and Industrial HarnessesOutside Voice & Data
    
    Communications
    
    TelecommunicationsDatacom Products
    
    Communications
    
    NetworkingEuropean Communications
    
    Communications
    
    NetworkingAsia Pacific Communications
    
    Communications
    
    Networking
    27




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
  Three Fiscal MonthsEndedMarch 31,
    
    
    April 1,2006
    
    
    2005Net sales:North American Electric Utility
    
    $
    172.6
    
    
    $
    127.3International Electric Utility
    
    
    127.5
    
    
    
    69.2North American Portable Power and Control
    
    
    65.0
    
    
    
    48.7North American Electrical Infrastructure
    
    
    73.3
    
    
    
    45.2International Electrical Infrastructure
    
    
    187.2
    
    
    
    117.4Transportation and Industrial Harnesses
    
    
    28.7
    
    
    
    29.9Telecommunications
    
    
    86.0
    
    
    
    70.1Networking
    
    
    64.0
    
    
    
    46.4Total net sales
    
    $
    804.3
    
    
    $
    554.2
 Three Fiscal MonthsEndedMarch 31,
    
    
    April 1,2006
    
    
    2005Operating income(loss):North American Electric Utility
    
    $
    6.2
    
    
    $
    4.4International Electric Utility
    
    
    12.3
    
    
    
    7.1North American Portable Power and Control
    
    
    4.1
    
    
    
    0.3North American Electrical Infrastructure
    
    
    1.2
    
    
    
    (3.6
    )International Electrical Infrastructure
    
    
    10.8
    
    
    
    8.1Transportation and Industrial Harnesses
    
    
    3.8
    
    
    
    5.0Telecommunications
    
    
    6.0
    
    
    
    2.8Networking
    
    
    (2.2
    )
    
    
    0.1Total operating income
    
    $
    42.2
    
    
    $
    24.2
 As ofMarch 31,
    
    
    Dec. 31,2006
    
    
    2005Identifiable assets:North American Electric Utility
    
    $
    202.0
    
    
    $
    187.2International Electric Utility
    
    
    307.6
    
    
    
    286.5North American Portable Power and Control
    
    
    125.6
    
    
    
    98.6North American Electrical Infrastructure
    
    
    107.1
    
    
    
    93.6International Electrical Infrastructure
    
    
    355.9
    
    
    
    331.9Transportation and Industrial Harnesses
    
    
    58.2
    
    
    
    56.7Telecommunications
    
    
    137.9
    
    
    
    133.1Networking
    
    
    177.7
    
    
    
    168.7Corporate
    
    
    158.0
    
    
    
    166.9Total assets
    
    $
    1,630.0
    
    
    $
    1,523.2
 14. Commitments and Contingencies
   28




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
      ®
    29




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
    30




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 15. Supplemental Guarantor Information
  Condensed Statements of Operations
Three Fiscal Months Ended March 31, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    377.1
    
    
    $
    427.2
    
    
    $
    
    
    
    $
    804.3Intercompany
    
    
    12.2
    
    
    
    
    
    
    
    
    
    
    
    (12.2
    )
    
    
    12.2
    
    
    
    377.1
    
    
    
    427.2
    
    
    
    (12.2
    )
    
    
    804.3Cost of sales
    
    
    
    
    
    
    330.5
    
    
    
    376.2
    
    
    
    
    
    
    
    706.7Gross profit
    
    
    12.2
    
    
    
    46.6
    
    
    
    51.0
    
    
    
    (12.2
    )
    
    
    97.6Selling, general and administrative
expenses
    
    
    11.4
    
    
    
    32.1
    
    
    
    24.1
    
    
    
    (12.2
    )
    
    
    55.4Operating income
    
    
    0.8
    
    
    
    14.5
    
    
    
    26.9
    
    
    
    
    
    
    
    42.2Other income (expense)
    
    
    
    
    
    
    (0.1
    )
    
    
    0.9
    
    
    
    
    
    
    
    0.8Interest income (expense):Interest expense
    
    
    (6.4
    )
    
    
    (15.4
    )
    
    
    (1.5
    )
    
    
    13.2
    
    
    
    (10.1
    )Interest income
    
    
    12.5
    
    
    
    0.1
    
    
    
    1.1
    
    
    
    (13.2
    )
    
    
    0.56.1
    
    
    
    (15.3
    )
    
    
    (0.4
    )
    
    
    
    
    
    
    (9.6
    )Income (loss) before income taxes
    
    
    6.9
    
    
    
    (0.9
    )
    
    
    27.4
    
    
    
    
    
    
    
    33.4Income tax provision
    
    
    (2.4
    )
    
    
    (0.4
    )
    
    
    (9.2
    )
    
    
    
    
    
    
    (12.0
    )Equity in net income of subsidiaries
    
    
    16.9
    
    
    
    18.2
    
    
    
    
    
    
    
    (35.1
    )
    
    
    Net income
    
    
    21.4
    
    
    
    16.9
    
    
    
    18.2
    
    
    
    (35.1
    )
    
    
    21.4Less: preferred stock dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Net income applicable to common
shareholders
    
    $
    21.3
    
    
    $
    16.9
    
    
    $
    18.2
    
    
    $
    (35.1
    )
    
    $
    21.3
 31




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Operations
Three Fiscal Months Ended April 1, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet sales:Customers
    
    $
    
    
    
    $
    302.5
    
    
    $
    251.7
    
    
    $
    
    
    
    $
    554.2Intercompany
    
    
    112.2
    
    
    
    
    
    
    
    5.2
    
    
    
    (117.4
    )
    
    
    112.2
    
    
    
    302.5
    
    
    
    256.9
    
    
    
    (117.4
    )
    
    
    554.2Cost of sales
    
    
    98.1
    
    
    
    270.2
    
    
    
    220.9
    
    
    
    (102.4
    )
    
    
    486.8Gross profit
    
    
    14.1
    
    
    
    32.3
    
    
    
    36.0
    
    
    
    (15.0
    )
    
    
    67.4Selling, general and administrative
expenses
    
    
    12.5
    
    
    
    26.7
    
    
    
    19.0
    
    
    
    (15.0
    )
    
    
    43.2Operating income
    
    
    1.6
    
    
    
    5.6
    
    
    
    17.0
    
    
    
    
    
    
    
    24.2Other expense
    
    
    
    
    
    
    
    
    
    
    (0.1
    )
    
    
    
    
    
    
    (0.1
    )Interest income (expense):Interest expense
    
    
    (7.4
    )
    
    
    (11.3
    )
    
    
    (1.5
    )
    
    
    9.9
    
    
    
    (10.3
    )Interest income
    
    
    9.5
    
    
    
    
    
    
    
    0.8
    
    
    
    (9.9
    )
    
    
    0.42.1
    
    
    
    (11.3
    )
    
    
    (0.7
    )
    
    
    
    
    
    
    (9.9
    )Income (loss) before income taxes
    
    
    3.7
    
    
    
    (5.7
    )
    
    
    16.2
    
    
    
    
    
    
    
    14.2Income tax (provision) benefit
    
    
    (1.3
    )
    
    
    1.2
    
    
    
    (5.1
    )
    
    
    
    
    
    
    (5.2
    )Equity in net income of subsidiaries
    
    
    6.6
    
    
    
    11.1
    
    
    
    
    
    
    
    (17.7
    )
    
    
    Net income (loss)
    
    
    9.0
    
    
    
    6.6
    
    
    
    11.1
    
    
    
    (17.7
    )
    
    
    9.0Less: preferred stock dividends
    
    
    (1.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.5
    )Net income (loss) applicable to common
shareholders
    
    $
    7.5
    
    
    $
    6.6
    
    
    $
    11.1
    
    
    $
    (17.7
    )
    
    $
    7.5
 32




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Balance Sheets
March 31, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash
    
    $
    
    
    
    $
    6.6
    
    
    $
    56.4
    
    
    $
    
    
    
    $
    63.0Receivables, net of allowances
    
    
    
    
    
    
    208.2
    
    
    
    425.4
    
    
    
    
    
    
    
    633.6Inventories
    
    
    
    
    
    
    198.4
    
    
    
    190.6
    
    
    
    
    
    
    
    389.0Deferred income taxes
    
    
    
    
    
    
    41.7
    
    
    
    0.2
    
    
    
    
    
    
    
    41.9Prepaid expenses and other
    
    
    1.2
    
    
    
    33.5
    
    
    
    11.9
    
    
    
    
    
    
    
    46.6Total current assets
    
    
    1.2
    
    
    
    488.4
    
    
    
    684.5
    
    
    
    
    
    
    
    1,174.1Property, plant and equipment, net
    
    
    0.2
    
    
    
    168.2
    
    
    
    199.5
    
    
    
    
    
    
    
    367.9Deferred income taxes
    
    
    4.8
    
    
    
    42.6
    
    
    
    5.1
    
    
    
    
    
    
    
    52.5Intercompany accounts
    
    
    646.0
    
    
    
    77.5
    
    
    
    124.4
    
    
    
    (847.9
    )
    
    
    Investment in subsidiaries
    
    
    13.3
    
    
    
    315.4
    
    
    
    
    
    
    
    (328.7
    )
    
    
    Other non-current assets
    
    
    7.5
    
    
    
    22.2
    
    
    
    5.8
    
    
    
    
    
    
    
    35.5Total assets
    
    $
    673.0
    
    
    $
    1,114.3
    
    
    $
    1,019.3
    
    
    $
    (1,176.6
    )
    
    $
    1,630.0Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    173.1
    
    
    $
    365.0
    
    
    $
    
    
    
    $
    538.1Accrued liabilities
    
    
    9.3
    
    
    
    62.2
    
    
    
    117.8
    
    
    
    
    
    
    
    189.3Current portion of long-term debt
    
    
    
    
    
    
    0.9
    
    
    
    6.2
    
    
    
    
    
    
    
    7.1Total current liabilities
    
    
    9.3
    
    
    
    236.2
    
    
    
    489.0
    
    
    
    
    
    
    
    734.5Long-term debt
    
    
    285.0
    
    
    
    147.4
    
    
    
    32.8
    
    
    
    
    
    
    
    465.2Deferred income taxes
    
    
    
    
    
    
    2.2
    
    
    
    10.7
    
    
    
    
    
    
    
    12.9Intercompany accounts
    
    
    37.2
    
    
    
    662.2
    
    
    
    148.5
    
    
    
    (847.9
    )
    
    
    Other liabilities
    
    
    12.8
    
    
    
    53.0
    
    
    
    22.9
    
    
    
    
    
    
    
    88.7Total liabilities
    
    
    344.3
    
    
    
    1,101.0
    
    
    
    703.9
    
    
    
    (847.9
    )
    
    
    1,301.3Total shareholders equity (deficit)
    
    
    328.7
    
    
    
    13.3
    
    
    
    315.4
    
    
    
    (328.7
    )
    
    
    328.7Total liabilities and shareholders equity
    
    $
    673.0
    
    
    $
    1,114.3
    
    
    $
    1,019.3
    
    
    $
    (1,176.6
    )
    
    $
    1,630.0
 33




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Balance Sheets
December 31, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalAssetsCurrent assets:Cash
    
    $
    
    
    
    $
    8.5
    
    
    $
    63.7
    
    
    $
    
    
    
    $
    72.2Receivables, net of allowances
    
    
    
    
    
    
    183.0
    
    
    
    359.9
    
    
    
    
    
    
    
    542.9Inventories
    
    
    
    
    
    
    185.0
    
    
    
    178.9
    
    
    
    
    
    
    
    363.9Deferred income taxes
    
    
    
    
    
    
    39.8
    
    
    
    2.1
    
    
    
    
    
    
    
    41.9Prepaid expenses and other
    
    
    1.2
    
    
    
    27.7
    
    
    
    19.7
    
    
    
    
    
    
    
    48.6Total current assets
    
    
    1.2
    
    
    
    444.0
    
    
    
    624.3
    
    
    
    
    
    
    
    1,069.5Property, plant and equipment, net
    
    
    0.2
    
    
    
    171.2
    
    
    
    195.0
    
    
    
    
    
    
    
    366.4Deferred income taxes
    
    
    
    
    
    
    48.4
    
    
    
    4.1
    
    
    
    
    
    
    
    52.5Intercompany accounts
    
    
    616.1
    
    
    
    103.2
    
    
    
    104.9
    
    
    
    (824.2
    )
    
    
    Investment in subsidiaries
    
    
    1.4
    
    
    
    291.8
    
    
    
    
    
    
    
    (293.2
    )
    
    
    Other non-current assets
    
    
    10.6
    
    
    
    21.8
    
    
    
    2.4
    
    
    
    
    
    
    
    34.8Total assets
    
    $
    629.5
    
    
    $
    1,080.4
    
    
    $
    930.7
    
    
    $
    (1,117.4
    )
    
    $
    1,523.2Liabilities and Shareholders EquityCurrent liabilities:Accounts payable
    
    $
    
    
    
    $
    151.2
    
    
    $
    321.1
    
    
    $
    
    
    
    $
    472.3Accrued liabilities
    
    
    3.3
    
    
    
    75.1
    
    
    
    133.8
    
    
    
    
    
    
    
    212.2Current portion of long-term debt
    
    
    
    
    
    
    0.9
    
    
    
    5.5
    
    
    
    
    
    
    
    6.4Total current liabilities
    
    
    3.3
    
    
    
    227.2
    
    
    
    460.4
    
    
    
    
    
    
    
    690.9Long-term debt
    
    
    285.0
    
    
    
    128.3
    
    
    
    31.9
    
    
    
    
    
    
    
    445.2Deferred income taxes
    
    
    1.1
    
    
    
    (0.5
    )
    
    
    12.8
    
    
    
    
    
    
    
    13.4Intercompany accounts
    
    
    34.5
    
    
    
    673.9
    
    
    
    115.8
    
    
    
    (824.2
    )
    
    
    Other liabilities
    
    
    12.3
    
    
    
    50.1
    
    
    
    18.0
    
    
    
    
    
    
    
    80.4Total liabilities
    
    
    336.2
    
    
    
    1,079.0
    
    
    
    638.9
    
    
    
    (824.2
    )
    
    
    1,229.9Total shareholders equity (deficit)
    
    
    293.3
    
    
    
    1.4
    
    
    
    291.8
    
    
    
    (293.2
    )
    
    
    293.3Total liabilities and shareholders equity
    
    $
    629.5
    
    
    $
    1,080.4
    
    
    $
    930.7
    
    
    $
    (1,117.4
    )
    
    $
    1,523.2
 34




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Cash Flows
Three Fiscal Months Ended March 31, 2006
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    8.2
    
    
    $
    (17.1
    )
    
    $
    (21.3
    )
    
    $
    
    
    
    $
    (30.2
    )Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (2.9
    )
    
    
    (5.1
    )
    
    
    
    
    
    
    (8.0
    )Proceeds from properties sold
    
    
    
    
    
    
    0.1
    
    
    
    0.3
    
    
    
    
    
    
    
    0.4Intercompany accounts
    
    
    (17.5
    )
    
    
    
    
    
    
    
    
    
    
    17.5
    
    
    
    Other, net
    
    
    
    
    
    
    (0.8
    )
    
    
    
    
    
    
    
    
    
    
    (0.8
    )Net cash flows of investing activities
    
    
    (17.5
    )
    
    
    (3.6
    )
    
    
    (4.8
    )
    
    
    17.5
    
    
    
    (8.4
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (0.1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (0.1
    )Excess tax benefits from stock-based
compensation
    
    
    3.3
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3.3Intercompany accounts
    
    
    
    
    
    
    (0.2
    )
    
    
    17.7
    
    
    
    (17.5
    )
    
    
    Proceeds from revolving credit borrowings
    
    
    
    
    
    
    71.3
    
    
    
    
    
    
    
    
    
    
    
    71.3Repayments of revolving credit borrowings
    
    
    
    
    
    
    (52.1
    )
    
    
    
    
    
    
    
    
    
    
    (52.1
    )Proceeds (repayments) of other debt
    
    
    
    
    
    
    (0.1
    )
    
    
    0.7
    
    
    
    
    
    
    
    0.6Proceeds from exercise of stock options
    
    
    6.1
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6.1Net cash flows of financing activities
    
    
    9.3
    
    
    
    18.9
    
    
    
    18.4
    
    
    
    (17.5
    )
    
    
    29.1Effect of exchange rate changes on cash
    
    
    
    
    
    
    (0.1
    )
    
    
    0.4
    
    
    
    
    
    
    
    0.3Decrease in cash
    
    
    
    
    
    
    (1.9
    )
    
    
    (7.3
    )
    
    
    
    
    
    
    (9.2
    )Cash  beginning of period
    
    
    
    
    
    
    8.5
    
    
    
    63.7
    
    
    
    
    
    
    
    72.2Cash  end of period
    
    $
    
    
    
    $
    6.6
    
    
    $
    56.4
    
    
    $
    
    
    
    $
    63.0
 35




---



##### 



GENERAL CABLE CORPORATION AND SUBSIDIARIES
 Notes to Condensed Consolidated Financial Statements (unaudited)- (Continued)
 Condensed Statements of Cash Flows
Three Fiscal Months Ended April 1, 2005
 Non-Guarantor
    
    
    GuarantorIssuer
    
    
    Subsidiaries
    
    
    Subsidiaries
    
    
    Eliminations
    
    
    TotalNet cash flows of operating activities
    
    $
    5.5
    
    
    $
    (9.0
    )
    
    $
    (1.6
    )
    
    $
    
    
    
    $
    (5.1
    )Cash flows of investing activities:Capital expenditures
    
    
    
    
    
    
    (2.9
    )
    
    
    (4.3
    )
    
    
    
    
    
    
    (7.2
    )Acquisitions, net of cash acquired
    
    
    
    
    
    
    (7.5
    )
    
    
    
    
    
    
    
    
    
    
    (7.5
    )Intercompany accounts
    
    
    (4.2
    )
    
    
    
    
    
    
    
    
    
    
    4.2
    
    
    
    Other, net
    
    
    
    
    
    
    (0.4
    )
    
    
    0.1
    
    
    
    
    
    
    
    (0.3
    )Net cash flows of investing activities
    
    
    (4.2
    )
    
    
    (10.8
    )
    
    
    (4.2
    )
    
    
    4.2
    
    
    
    (15.0
    )Cash flows of financing activities:Preferred stock dividends paid
    
    
    (1.5
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1.5
    )Intercompany accounts
    
    
    
    
    
    
    4.3
    
    
    
    (0.1
    )
    
    
    (4.2
    )
    
    
    Proceeds from revolving credit borrowings
    
    
    
    
    
    
    78.4
    
    
    
    
    
    
    
    
    
    
    
    78.4Repayments of revolving credit borrowings
    
    
    
    
    
    
    (58.3
    )
    
    
    
    
    
    
    
    
    
    
    (58.3
    )Proceeds of other debt
    
    
    
    
    
    
    
    
    
    
    1.0
    
    
    
    
    
    
    
    1.0Proceeds from exercise of stock options
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    0.2Net cash flows of financing activities
    
    
    (1.3
    )
    
    
    24.4
    
    
    
    0.9
    
    
    
    (4.2
    )
    
    
    19.8Effect of exchange rate changes on cash
    
    
    
    
    
    
    
    
    
    
    (1.6
    )
    
    
    
    
    
    
    (1.6
    )Increase (decrease) in cash
    
    
    
    
    
    
    4.6
    
    
    
    (6.5
    )
    
    
    
    
    
    
    (1.9
    )Cash  beginning of period
    
    
    0.1
    
    
    
    3.1
    
    
    
    33.2
    
    
    
    
    
    
    
    36.4Cash  end of period
    
    $
    0.1
    
    
    $
    7.7
    
    
    $
    26.7
    
    
    $
    
    
    
    $
    34.5
 36




---



##### 



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
     37




---



##### 



®
 Three Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Net sales:North America
    
    $
    464.2
    
    
    
    58
    %
    
    $
    351.9
    
    
    
    63
    %International
    
    
    340.1
    
    
    
    42
    %
    
    
    202.3
    
    
    
    37
    %Total net sales
    
    $
    804.3
    
    
    
    100
    %
    
    $
    554.2
    
    
    
    100
    %Operating income:North America
    
    $
    20.3
    
    
    
    48
    %
    
    $
    8.1
    
    
    
    33
    %International
    
    
    21.9
    
    
    
    52
    %
    
    
    16.1
    
    
    
    67
    %Subtotal
    
    
    42.2
    
    
    
    100
    %
    
    
    24.2
    
    
    
    100
    %Corporate charges
    
    
    
    
    
    
    
    
    
    
    Total operating income
    
    $
    42.2
    
    
    
    
    
    
    $
    24.2
     38




---



##### 



Current Business Environment
   ®
   ®
   39




---



##### 



®
   Acquisitions and Divestitures
   40




---



##### 



® ® ®
  As ofDecember 22, 2005Cash
    
    $
    1.4Accounts receivable
    
    
    113.5Inventories
    
    
    49.1Prepaid expenses and other
    
    
    8.4Property, plant and equipment
    
    
    24.5Other noncurrent assets
    
    
    2.8Total assets
    
    $
    199.7Accounts payable
    
    $
    43.1Accrued liabilities
    
    
    48.1Other liabilities
    
    
    12.0Total liabilities
    
    $
    103.2
   AmortizationEstimated Fair
    
    
    PeriodValue
    
    
    (in years)Patents
    
    $
    1.4
    
    
    
    12.0Total amortizable intangible assets
    
    $
    1.4
    
    
    
    12.0Trademarks
    
    $
    1.3Total intangible assets
    
    $
    2.7
  41




---



##### 



® ®
 Unaudited Three FiscalMonths EndedMarch 31,
    
    
    April 1,2006
    
    
    2005(As reported)
    
    
    (Pro forma)Revenue
    
    $
    804.3
    
    
    $
    628.2Net income applicable to common shareholders
    
    $
    21.3
    
    
    $
    8.0Earnings per common share  assuming
dilution
    
    $
    0.41
    
    
    $
    0.19
 ® ® ®
   Critical Accounting Policies and Estimates
  42




---



##### 



Inventory Costing and Valuation
   Pension Accounting
     Income Taxes
  43




---



##### 



Revenue Recognition
  Business Combination Accounting
 ®
 44




---



##### 



New Accounting Standards
   Results of Operations
  Three Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %Net sales
    
    $
    804.3
    
    
    
    100.0
    %
    
    $
    554.2
    
    
    
    100.0
    %Cost of sales
    
    
    706.7
    
    
    
    87.9
    %
    
    
    486.8
    
    
    
    87.8
    %Gross profit
    
    
    97.6
    
    
    
    12.1
    %
    
    
    67.4
    
    
    
    12.2
    %Selling, general and
administrative expenses
    
    
    55.4
    
    
    
    6.9
    %
    
    
    43.2
    
    
    
    7.8
    %Operating income
    
    
    42.2
    
    
    
    5.2
    %
    
    
    24.2
    
    
    
    4.4
    %Other income (expense)
    
    
    0.8
    
    
    
    0.1
    %
    
    
    (0.1
    )
    
    
    Interest expense, net
    
    
    (9.6
    )
    
    
    (1.2
    )%
    
    
    (9.9
    )
    
    
    (1.8
    )%Income before income taxes
    
    
    33.4
    
    
    
    4.2
    %
    
    
    14.2
    
    
    
    2.6
    %Income tax provision
    
    
    (12.0
    )
    
    
    (1.5
    )%
    
    
    (5.2
    )
    
    
    (0.9
    )%Net income
    
    
    21.4
    
    
    
    2.7
    %
    
    
    9.0
    
    
    
    1.6
    %Less: preferred stock
dividends
    
    
    (0.1
    )
    
    
    
    
    
    
    (1.5
    )
    
    
    (0.3
    )%Net income applicable to
common shareholders
    
    $
    21.3
    
    
    
    2.6
    %
    
    $
    7.5
    
    
    
    1.4
    %
 Three Fiscal Months Ended March 31, 2006 Compared with Three Fiscal Months Ended April 1, 2005
  Net Sales
  45




---



##### 



Net SalesThree Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    172.6
    
    
    
    21
    %
    
    $
    127.3
    
    
    
    23
    %International Electric Utility
    
    
    127.5
    
    
    
    16
    %
    
    
    69.2
    
    
    
    13
    %North American Portable Power and Control
    
    
    65.0
    
    
    
    8
    %
    
    
    48.7
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    73.3
    
    
    
    9
    %
    
    
    45.2
    
    
    
    8
    %International Electrical Infrastructure
    
    
    187.2
    
    
    
    23
    %
    
    
    117.4
    
    
    
    21
    %Transportation and Industrial Harnesses
    
    
    28.7
    
    
    
    4
    %
    
    
    29.9
    
    
    
    5
    %Telecommunications
    
    
    86.0
    
    
    
    11
    %
    
    
    70.1
    
    
    
    13
    %Networking
    
    
    64.0
    
    
    
    8
    %
    
    
    46.4
    
    
    
    8
    %Total net sales
    
    $
    804.3
    
    
    
    100
    %
    
    $
    554.2
    
    
    
    100
    %
 Metal-Adjusted Net SalesThree Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    172.6
    
    
    
    21
    %
    
    $
    147.4
    
    
    
    22
    %International Electric Utility
    
    
    127.5
    
    
    
    16
    %
    
    
    75.9
    
    
    
    12
    %North American Portable Power and Control
    
    
    65.0
    
    
    
    8
    %
    
    
    57.4
    
    
    
    9
    %North American Electrical Infrastructure
    
    
    73.3
    
    
    
    9
    %
    
    
    53.9
    
    
    
    8
    %International Electrical Infrastructure
    
    
    187.2
    
    
    
    23
    %
    
    
    147.2
    
    
    
    23
    %Transportation and Industrial Harnesses
    
    
    28.7
    
    
    
    4
    %
    
    
    30.1
    
    
    
    5
    %Telecommunications
    
    
    86.0
    
    
    
    11
    %
    
    
    87.2
    
    
    
    13
    %Networking
    
    
    64.0
    
    
    
    8
    %
    
    
    52.6
    
    
    
    8
    %Total metal-adjusted net sales
    
    
    804.3
    
    
    
    100
    %
    
    
    651.7
    
    
    
    100
    %Metal adjustment
    
    
    
    
    
    
    
    
    
    
    (97.5
    )Total net sales
    
    $
    804.3
    
    
    
    
    
    
    $
    554.2
 Metal Pounds SoldThree Fiscal Months EndedMarch 31, 2006
    
    
    April 1, 2005Pounds
    
    
    %
    
    
    Pounds
    
    
    %North American Electric Utility
    
    
    57.1
    
    
    
    28
    %
    
    
    50.0
    
    
    
    31
    %International Electric Utility
    
    
    32.4
    
    
    
    16
    %
    
    
    20.6
    
    
    
    13
    %North American Portable Power and Control
    
    
    11.8
    
    
    
    6
    %
    
    
    11.1
    
    
    
    7
    %North American Electrical Infrastructure
    
    
    14.9
    
    
    
    7
    %
    
    
    11.1
    
    
    
    7
    %International Electrical Infrastructure
    
    
    53.4
    
    
    
    27
    %
    
    
    38.1
    
    
    
    24
    %Transportation and Industrial Harnesses
    
    
    0.2
    
    
    
    
    %
    
    
    0.1
    
    
    
    
    %Telecommunications
    
    
    22.5
    
    
    
    11
    %
    
    
    21.9
    
    
    
    13
    %Networking
    
    
    9.3
    
    
    
    5
    %
    
    
    7.6
    
    
    
    5
    %Total metal pounds sold
    
    
    201.6
    
    
    
    100
    %
    
    
    160.5
    
    
    
    100
    %
 ® ® ®
 46




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##### 



®
   ®
 47




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##### 



Gross Profit
  Selling, General and Administrative Expense
 ®
 Operating Income
  Operating IncomeThree Fiscal Months Ended,March 31, 2006
    
    
    April 1, 2005Amount
    
    
    %
    
    
    Amount
    
    
    %North American Electric Utility
    
    $
    6.2
    
    
    
    15
    %
    
    $
    4.4
    
    
    
    18
    %International Electric Utility
    
    
    12.3
    
    
    
    29
    %
    
    
    7.1
    
    
    
    29
    %North American Portable Power and Control
    
    
    4.1
    
    
    
    10
    %
    
    
    0.3
    
    
    
    1
    %North American Electrical Infrastructure
    
    
    1.2
    
    
    
    3
    %
    
    
    (3.6
    )
    
    
    (15
    )%International Electrical Infrastructure
    
    
    10.8
    
    
    
    25
    %
    
    
    8.1
    
    
    
    34
    %Transportation and Industrial Harnesses
    
    
    3.8
    
    
    
    9
    %
    
    
    5.0
    
    
    
    21
    %Telecommunications
    
    
    6.0
    
    
    
    14
    %
    
    
    2.8
    
    
    
    12
    %Networking
    
    
    (2.2
    )
    
    
    (5
    )%
    
    
    0.1
    
    
    
    
    %Total operating income
    
    $
    42.2
    
    
    
    100
    %
    
    $
    24.2
    
    
    
    100
    %
  48




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##### 



®
 ® ®
 ® ®
  Other Income (Expense)
  Interest Expense
 ®
 Tax Provision
  Preferred Stock Dividends
  49




---



##### 



Liquidity and Capital Resources
    Three Fiscal Months EndedMarch 31,
    
    
    April 1,2006
    
    
    2005North America
    
    $
    (18.0
    )
    
    $
    (14.3
    )International
    
    
    (12.2
    )
    
    
    9.2Total
    
    $
    (30.2
    )
    
    $
    (5.1
    )
       50




---



##### 



® ®
   51




---



##### 



Payments Due by PeriodLess than
    
    
    1 - 3
    
    
    4 - 5
    
    
    After 5Total
    
    
    1 Year
    
    
    Years
    
    
    Years
    
    
    YearsContractual obligations:Total debt (excluding capital leases)
    
    $
    467.0
    
    
    $
    6.1
    
    
    $
    11.0
    
    
    $
    430.2
    
    
    $
    19.7Capital leases
    
    
    5.3
    
    
    
    1.0
    
    
    
    2.0
    
    
    
    2.3
    
    
    
    Interest payments on Senior Notes
    
    
    135.4
    
    
    
    27.1
    
    
    
    54.2
    
    
    
    54.1
    
    
    
    Preferred stock dividend payments
    
    
    2.3
    
    
    
    0.3
    
    
    
    0.6
    
    
    
    0.6
    
    
    
    0.8Operating leases
    
    
    26.5
    
    
    
    7.5
    
    
    
    9.1
    
    
    
    5.6
    
    
    
    4.3Commodity futures and forward pricing
agreements
    
    
    226.8
    
    
    
    226.6
    
    
    
    0.2
    
    
    
    
    
    
    
    Foreign currency contracts
    
    
    51.1
    
    
    
    50.1
    
    
    
    1.0
    
    
    
    
    
    
    
    Cross currency and interest rate swap
    
    
    174.6
    
    
    
    11.4
    
    
    
    163.2
    
    
    
    
    
    
    
    Total
    
    $
    1,089.0
    
    
    $
    330.1
    
    
    $
    241.3
    
    
    $
    492.8
    
    
    $
    24.8
 52




---



##### 



Off Balance Sheet Assets and Obligations
 ®
 53




---



##### 



Environmental Matters
 ®
 Item 3. Quantitative and Qualitative Disclosures about Market Risk
   March 31, 2006
    
    
    December 31, 2005Notional
    
    
    Fair
    
    
    Notional
    
    
    FairAmount
    
    
    Value
    
    
    Amount
    
    
    ValueCash flow hedges:Interest rate swap
    
    $
    9.0
    
    
    $
    (0.3
    )
    
    $
    9.0
    
    
    $
    (0.4
    )Foreign currency forward exchange
    
    
    51.1
    
    
    
    2.7
    
    
    
    43.1
    
    
    
    0.3Commodity futures
    
    
    85.0
    
    
    
    16.9
    
    
    
    39.9
    
    
    
    11.6Net investment hedges:Cross currency and interest rate swap
    
    
    150.0
    
    
    
    (0.6
    )
    
    
    150.0
    
    
    
    2.6$
    18.7
    
    
    
    
    
    
    $
    14.1
  54




---



##### 



Item 4. Controls and Procedures
 Disclosure Controls and Procedures
 .
 .
    55




---



##### 



Changes in Internal Control Over Financial Reporting
   PART II. Other Information
 Item 1A. Risk Factors
  Item 6. Exhibits
   **10.85
    
    Salary Adjustment for Executive Vice President, General Counsel and Secretary
dated February 23, 2006 (incorporated by reference to the Form 8-K Current Report as
filed on February 23, 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
 56




---



##### 



Signature
  General Cable CorporationSigned: November 8, 2006
    
    By:
    
    /s/ CHRISTOPHER F. VIRGULAK

Christopher F. VirgulakExecutive Vice President andChief Financial Officer(Chief Accounting Officer)
 57




---



##### 



Exhibit Index
 10.85
    
    Salary Adjustment for Executive Vice President, General Counsel and Secretary dated
February 23, 2006 (incorporated by reference to the Form 8-K Current Report as filed on
February 23, 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
 58