General Cable Reports Second Quarter Revenue and Earnings; EPS of $0.80

General Cable Corporation (NYSE:BGC) reported today
revenues and earnings for the second quarter. Revenues of $987.1
million were up 19% on a metal-adjusted basis. Net income for the
second quarter of 2006 was $41.5 million compared to adjusted net
income of $13.9 million in the second quarter of 2005. Included in the
second quarter 2005 results were pre-tax charges of $3.5 million
associated with the closure of certain of the Company's manufacturing
facilities. These costs reduced reported earnings per share by $0.04
in that period. Earnings per share on a diluted per share basis for
the second quarter ended June 30, 2006 was $0.80 compared to adjusted
earnings per share of $0.27 in the second quarter of 2005, an increase
of 196%.

Second Quarter Highlights

-- Achieved 13th consecutive quarter of positive year-over-year
metal-adjusted revenue growth.

-- Increased year-over-year second quarter operating margins by
approximately 330 basis points, on a metal-adjusted basis.

-- Continued the turnaround in North American industrial and
networking businesses on the strength of market demand,
operating execution and improved pricing.

-- Results were achieved despite a 50% sequential increase in
copper Comex prices.

Second Quarter Results

Net sales were up in all reported business segments in the second
quarter of 2006 compared to metal-adjusted net sales in the second
quarter of 2005. Net sales for the second quarter of 2006 were
$987.1 million, and represent an increase in metal pounds sold of 22%
versus the second quarter of 2005. Acquired businesses added
$112.7 million of sales and accounted for 12.7 points of the volume
growth in metal pounds sold in the second quarter of 2006. The average
price per pound of copper and aluminum increased $1.84 (120%) and
$0.39 (45%), respectively, to $3.37 and $1.26 from the second quarter
of 2005 to the second quarter of 2006, and were up $1.12 (50%) and
$0.11 (10%) from the first quarter of 2006, respectively.
Second quarter 2006 operating income was $70.4 million compared to
second quarter 2005 adjusted operating income of $31.5 million, an
increase of $38.9 million or 123%. Operating earnings as a percent of
metal-adjusted net revenues were 7.1% in the second quarter of 2006
compared to an adjusted operating earnings percentage of 3.8% in the
second quarter of 2005, an increase of approximately 330 basis points.
The improvement in operating earnings was driven by increased
factory utilization, and a significantly improved pricing environment
across most of the Company's product lines and geographies, including
a reduction in the time to recover raw material inflation. Also,
strong productivity gains in several of the Company's North American
manufacturing facilities, as well as factory improvements in Europe
and Asia Pacific from the application of LEAN manufacturing
techniques, have led to improved earnings. In addition, during the
second quarter, as a result of certain customer shipments being
delayed into the third quarter, the Company benefited from copper
hedge positions that were closed in June prior to the recognition of
the hedged sale transactions. The Company also benefited from the
forward purchase of a small portion of its copper requirements due to
concerns over supply tightness. Combined, the Company estimated the
incremental operating profit realized in the second quarter from these
items was about $8.5 million, or $0.10 per share.
"For the first time in several years, all of our product lines are
in the black, including the North American industrial and local area
networking businesses, which have been dilutive to earnings for the
last few years," said Gregory B. Kenny, President and Chief Executive
Officer of General Cable. "The early recognition of the long-term need
for fresh investment in energy exploration, production, transmission
and distribution infrastructure around the world and our related
decision to acquire BICC in 1999 and Silec last year are starting to
pay real dividends for our shareholders. We continue to look globally
for additional investment opportunities in this sector which now
represents approximately 45% to 50% of our annual revenues."
"Asia Pacific's financial performance is benefiting from strong
demand in Australia and the Pacific Islands. We are also seeing
positive demand and stronger pricing trends in Portugal, Brazil,
Angola, and Canada. The French market is also improving, particularly
for power and industrial cables. At the same time we are seeing
improved project pricing and demand in the global high-voltage market
for underground cables, connectors, and systems engineering. As a
result, our Silec acquisition is on track to be marginally accretive
this year with significant opportunity for improvement in 2007," Kenny
continued.
"I am especially proud of our efforts to manage our working
capital and liquidity during the quarter which helped offset the
traditionally higher working capital requirements during the peak
building season and the continuing funding of higher copper costs in
our receivables. As a result, our strong earnings based cash flows
resulted in a reduction in net debt of $23 million during the second
quarter," Kenny concluded.

Segment Results

The Energy segment metal-adjusted revenues were up 32%, or 12%
before the impact of acquisitions. This increase was led by North
American aluminum overhead transmission cable growth of 37%, measured
by metal pounds sold, as interconnection project activity increased.
Industry lead times for new projects have increased to several months.
Operating income in the Energy segment was up $9.8 million to
$25.2 million, and operating margin improved approximately 130 basis
points from the second quarter of 2005, primarily as a result of the
additional leverage of fixed costs on incremental volume, recovery of
raw material price inflation, and increased market pricing. This
result includes $55 million in Silec revenues at low operating margins
which the Company expects to improve over time through accelerating
marketing and manufacturing synergies, improved pricing, and the
implementation of LEAN initiatives.
Industrial & Specialty cables metal-adjusted revenue was up 20% in
the second quarter of 2006 compared to the second quarter of 2005.
Before the impact of acquisitions, metal pounds sold increased 12.3%
due to strong demand in North America for marine, mining, oil and gas
exploration and production products as well as strong European end
markets. Favorable manufacturing volume productivity, particularly for
marine and mining products, continues to drive incremental operating
profits. In addition, the pricing environment for industrial cables in
Europe and North America has improved compared to the second quarter
of 2005. Operating earnings for the second quarter were $30.8 million,
up $20.6 million or three times greater than the second quarter of
2005 and resulted in an improvement in operating margins of 420 basis
points to 7.0%. This result includes $51.3 million in acquired
revenues with minimal operating contribution.
"Utilization levels across all energy and industrial businesses
are quite high and industry-wide lead times have lengthened in Europe
and North America. Demand for medium and high voltage power cables is
particularly strong, driven by the interconnection of generating
plants, alternative energy, and grid reinforcement in populous
metropolitan areas," Kenny said.
Communication cables segment revenues declined about 3% on a
metal-adjusted basis without the impact of acquisitions. Networking
sales globally were up approximately 30%. The increase in networking
sales is a result of strong demand for higher performance cables and
warranted systems as well as accelerating pricing in the market. The
Company's products supporting the General Cable-Panduit alliance have
gained wide acceptance in the marketplace, particularly by the Fortune
1000 in North America. This quarter represents the fourth consecutive
quarter of year over year metal-adjusted revenue growth for networking
cable in excess of 20%. Our specialty military and private network
fiber optics business is also contributing to profit growth, partially
due to the consolidation of the manufacturing facility into the
Helix/Hitemp platform acquired last year from Draka. Partially
offsetting these increases was continued lower unit demand for outside
plant telecommunications cables. With manufacturing capacity for
telecommunications cables coming out of the market faster than
declines in demand, capacity utilization has been increasing which has
helped drive spot and contractual pricing higher. At the same time,
the lag between recognition of raw material increases and price
increases for the Company's products in the market was significantly
shortened. In addition, the Company continues to benefit from cost
savings from its 2005 plant rationalization, and improved factory
floor productivity with respect to labor, scrap and throughput. In
all, segment operating earnings were up $8.5 million to $14.4 million,
an increase of 144%.
Selling, general and administrative expenses in the second quarter
of 2006 were $59.1 million compared to $43.3 million in the second
quarter of 2005. The increase in expenses is due principally to the
addition of Silec and Beru, acquired in late 2005, higher commissions
and other selling costs resulting from increased sales, as well as an
increase in performance based incentive compensation. Selling, general
and administrative expenses were 6.0% and 5.2% of metal-adjusted net
sales in the second quarter of 2006 and 2005, respectively.
The Company's effective tax rate for the second quarter of 2006
was 29.7%; lower than the statutory rate due to a reduction in
deferred state tax valuation allowances of approximately $3.7 million
and a reduction in the expected full-year effective rate to 36.5%. The
combined items increased reported earnings per share for the second
quarter by $0.09.

Preferred Stock Dividend

In accordance with the terms of the Company's 5.75% Series A
Convertible Redeemable Preferred Stock, the Board of Directors has
declared a regular quarterly preferred stock dividend of approximately
$0.72 per share. The dividend is payable on August 24, 2006 to
preferred stockholders of record as of the close of business on
July 31, 2006. The Company expects the quarterly dividend payment to
approximate $0.1 million.

Third Quarter 2006 Outlook

Commenting on the outlook for the third quarter of 2006, Kenny
said "Our annualized revenues in the European Union are approaching
$1.3 billion or almost 40% of total Company revenue. With our business
more leveraged to Europe than in the past, we expect the seasonal
slowdown in the third quarter will be slightly more pronounced this
year due to the traditional August holiday period in Europe. Overall,
for the third quarter we expect revenues between $950 and $975 million
and earnings per share of between $0.50 and $0.55, an increase of 92%
to 115% from the adjusted earnings per share of $0.26 in the third
quarter of 2005," Kenny concluded.
General Cable will discuss second quarter results on a conference
call and webcast at 8:30 a.m. ET tomorrow, July 26. For more
information please see our website at www.generalcable.com.
With $3.5 billion of annualized revenues and 7,500 employees,
General Cable (NYSE:BGC) is a global leader in the development,
design, manufacture, marketing and distribution of copper, aluminum
and fiber optic wire and cable products for the energy, industrial,
specialty and communications markets. Visit our website at
www.generalcable.com.
Certain statements in this press release, including without
limitation, statements regarding future financial results and
performance, plans and objectives, capital expenditures and the
Company's or management's beliefs, expectations or opinions, are
forward-looking statements. Actual results may differ materially from
those statements as a result of factors, risks and uncertainties over
which the Company has no control. Such factors include the economic
strength and competitive nature of the geographic markets that the
Company serves; economic, political and other risks of maintaining
facilities and selling products in foreign countries; changes in
industry standards and regulatory requirements; advancing
technologies, such as fiber optic and wireless technologies;
volatility in the price of copper and other raw materials, as well as
fuel and energy and the Company's ability to reflect such volatility
in its selling prices; interruption of supplies from the Company's key
suppliers; the failure to negotiate extensions of the Company's labor
agreements on acceptable terms; the Company's ability to increase
manufacturing capacity and achieve productivity improvements; the
Company's dependence upon distributors and retailers for non-exclusive
sales of certain of the Company's products; pricing pressures in the
Company's end markets; the Company's ability to maintain the
uncommitted accounts payable or accounts receivable financing
arrangements in its European operations; the impact of any additional
charges in connection with plant closures and the Company's inventory
accounting practices; the impact of certain asbestos litigation,
unexpected judgments or settlements and environmental liabilities; the
ability to successfully identify, finance and integrate acquisitions;
the impact of terrorist attacks or acts of war which may affect the
markets in which the Company operates; the Company's ability to retain
key employees; the Company's ability to service debt requirements and
maintain adequate domestic and international credit facilities and
credit lines; the impact on the Company's operating results of its
pension accounting practices; the Company's ability to avoid
limitations on utilization of net losses for income tax purposes;
volatility in the market price of the Company's common stock all of
which are more fully discussed in the Company's Report on Form 10-K
filed with the Securities and Exchange Commission on March 15, 2006,
as well as periodic reports filed with the Commission.