MILAN (Reuters) -A strong performance at its energy business, driven by growing demand for electricity, helped the world's biggest cable maker Prysmian to beat earnings expectations for the first nine months of 2022 and lift its forecasts for the full year.
The Italian company predicted on Thursday its adjusted earnings before interest, tax, depreciation and amortization (EBITDA) would increase to 1.425-1.475 billion euros ($1.42-$1.47 billion) this year, versus a previous forecast of 1.3-1.4 billion euros.
Cash flow generation is now seen at 450-500 million euros this year, versus 400-460 million previously.
Milan-listed shares in Prysmian rose by as much as 4% after the results were published. By 1350 GMT they were up 3.5%.
The forecasts assume global supply chains will remain under pressure in the coming months, but without any further tensions or extreme changes in input prices, the company said.
Chief Executive Valerio Battista said Prysmian's results were supported by an excellent performance across nearly all of its businesses and geographies.
"This result confirms the group's ability to harness the secular drivers of the energy transition and digitalisation, even in an uncertain macroeconomic and market scenario," he said in a statement.
In January-September, Prysmian's adjusted EBITDA rose by 56% to 1.131 billion euros, beating a company-provided consensus forecast of 1.067 billion euros.
The energy business, which accounted for almost 80% of sales in the first nine months of the year, posted a record performance for both revenue and core profits, the company said. Its adjusted EBITDA jumped 80% to 761 million euros.
($1 = 1.0053 euros)
(Reporting by Giulio Piovaccari Editing by Keith Weir and Mark Potter)