Prysmian

Although Prysmian is one of the largest and most profitable cable companies, with high exposure to both energy and telecom cable and a small presence in low value-added industrial cable, prices remain under pressure and operational gearing remains high. The slow rate of recovery in the group's key segments has reduced visibility, while margin pressure in areas exposed to general industrial production or construction remains high. The share price target was revised downwards to take account of the higher risks and the stock was thus sold.

Having been formed through acquisition (of Pirelli Cable, the European parts of BICC etc), Prysmian was floated by its private equity owners in 2007, just before the markets peaked. The stock has corrected in the global slowdown, while its strong position in both energy and communication cables mean that long-term visibility of demand is good. The group has undertaken massive restructuring and is less exposed to general industrial cable than many of its peers, while having a relatively healthy balance sheet. The industry remains very fragmented and Prysmian is well placed to take an active role in consolidation.