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Consolidated Financial Report |
DIRECTORS’ REPORT
2014 Annual Report
Prysmian Group
60
Market Overview
Trends on Industrial cable markets in 2014 displayed consid-
erable inconsistencies between the various business lines
and large disparities between the different geographical
areas. The common tendency was for more fragmented
and erratic demand, concentrated on smaller scale but
technologically more complex projects than in the past, ac-
companied by more exacting requirements regarding quality
and after-sales service.
Some segments of the Industrial market showed stable or
growing demand, like certain top sectors of OEMs (like rolling
stock), Oil & Gas (Offshore) and the Elevator market, accom-
panied by a recovery in demand in the renewable energy
market; by contrast, other market segments experienced a
contraction in volumes, like the Onshore Oil & Gas segment,
affected by delays in investment projects, and the low-end
mining and infrastructure ranges for the OEMmarket, where
demand depends on specific geographical factors.
In addition, international demand in the standard segments
of the Oil & Gas market (MRO) declined in the second half of
the year with the falling price of oil.
Demand in the industrial infrastructure and mining sectors
was weak and below that in 2013, primarily due to falling
commodity prices and significant production overcapacity.
As far as applications for the transport sector are concerned,
the major European players adopted a cautious stance due
to poor visibility as to when to resume investments and
to recent deficit-cutting policies in the Eurozone's major
economies; demand in other parts of the world remained
buoyant, especially in China and the Far East.
A conflicting pattern of demand was also confirmed in the
Automotive sector. While volumes increased on the prior
year in areas outside Europe, mainly the Americas and Asia,
the restrictive financial policies in Europe forced the ending
of incentives in support of the automotive industry with a
consequent impact on levels of demand in local markets.
Lastly, the renewable energy market reported particularly
positive demand outside Europe, especially in China and
North America. In Europe, however, demand remained
weak in the wake of restrictive financial policies adopted by
the main governments which either cut special incentives
or made it more difficult to access credit for onshore wind
projects.
Considerable inconsistencies between the various business lines and large disparities
between the different geographical areas. General recovery in demand for renewables.