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CommScope optimistic about LatAm sales despite 3Q22 drop

Bnamericas Published: Thursday, November 03, 2022
CommScope optimistic about LatAm sales despite 3Q22 drop

US wireless and broadband network provider CommScope posted lower revenues in Latin America and the Caribbean in 3Q22, but the company is optimistic about its business in the region.

The company pointed out that demand for cabling systems and outdoor wireless solutions should increase with the expansion of 5G, boosting sales going forward.

Commscope reported US$149mn revenues in Latin America and the Caribbean in July-September, down 4.9% year-on-year, according to the its financial report.

The group also saw sales drop in Europe, Middle East and Africa (- 5.4%), and in Asia Pacific (-7.7%).

CommScope is doubling down on expanding local design and manufacturing of its portfolio, as previously reported by BNamericas.

Overall, CommScope’s net sales grew 13.1% year-on-year, to US$2.38bn in the quarter, driven by double-digit expansions in the US and Canada.

Nearly half of its sales come from the Cable Connectivity Solution (CCS) business line, which brought in more than US$1bn in the quarter, up 27.9% from the same period of 2021 driven by growth in network cable and connectivity, it stated.

CCS, along with the business lines of cellular and security solutions (NICS), outdoor wireless networks (OWN) and access networks solutions (ANS), comprise the core of CommScope's business.

“I’m pleased to share that we delivered Core net sales of US$1.99bn and Core adjusted Ebitda of US$353mn for the third quarter of 2022 – our highest performance on record since completing the ARRIS acquisition. As we have continued to reiterate over the last several quarters, we are taking swift action to drive growth in our business and offset inflationary impacts," CEO Charles Treadway said in a statement.

Looking forward, the company believes global supply chain challenges and their adverse impact on its operations will “continue to improve” in the fourth quarter and that certain shortages could continue into 2023. 

CommScope also warned that macroeconomic pressures such as rising interest rates, energy prices and fear about an economic slowdown could “impact the timing and amount of capital spending by its customers in 2023 and could negatively impact its results of operations.”

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