25 In 2012 , the Company continued to actively identify key trends in the industry to capitalize on expanding markets and new niche markets or exit declining or non-strategic markets in order to achieve better returns. The Company also sets aggressive performance tar gets for its business and intends to refocus or divest those activities which fail to meet tar gets or do not fit long-term strategies. In 2012 the Company acquired the North American and Chinese business of Alcan Cable, Prestolite W ire, LLC and 60% of Productora de Cables Procables S.A.S. See Note 3 - "Acquisitions and Divestitures" for further detail. No material acquisitions were made in the year ended December 31, 201 1. The results of operations of the acquired businesses have been included in the Consolidated Financial Statements since the respective dates of the acquisition and have been determined to be individually and collectively immaterial for additional disclosure purposes. No material divestitures were made in the year ended December 31, 2012 and December 31, 201 1 . In addition to the factors previously mentioned, the Company is currently being af fected by the following general macro-level trends: • Currency volatility and continued political uncertainty in certain markets; • Competitive price pressures in certain markets, particularly those where the Company is a new entrant; • Continued low levels of demand for a broad spectrum of products in Europe; • W orldwide underlying long-term growth trends in electric utility and infrastructure markets; • Continuing demand for natural resources, such as oil and gas, and alternative ener gy initiatives; • Increasing demand for further deployment of submarine power and fiber optic communication systems; and • Population growth in developing countries with growing middle classes that influences demand for wire and cable. The Company's overall financial results discussed in this section of the annual report reflect the above trends. Results of Operations The following table sets forth, for the periods indicated, consolidated statement of operations data in millions of dollars and as a percentage of net sales. Percentages may not add due to rounding.   Year Ended December 31,   2012 2011 2010   Amount % Amount % Amount % Net sales $ 6,014.3 100.0 % $ 5,866.7 100.0 % $ 4,864.9 100.0 % Cost of sales 5,400.1 89.8 % 5,259.0 89.6 % 4,319.2 88.8 % Gross profit 614.2 10.2 % 607.7 10.4 % 545.7 11.2 % Selling, general and administrative expenses 419.4 7.0 % 377.6 6.4 % 331.6 6.8 % Operating income 194.8 3.2 % 230.1 3.9 % 214.1 4.4 % Other income (expense) (2.9 ) — % (31.7 ) (0.5 )% (28.1 ) (0.6 )% Interest expense, net, and loss on extinguishment of debt (109.6 ) (1.8 )% (91.5 ) (1.6 )% (71.6 ) (1.5 )% Income before income taxes 82.3 1.4 % 106.9 1.8 % 114.4 2.4 % Income tax provision (74.2 ) (1.2 )% (42.7 ) (0.7 )% (46.7 ) (1.0 )% Equity in net earnings of affiliated companies 1.7 — 2.9 — 1.4 — % Net income including noncontrolling interest 9.8 0.2 % 67.1 1.1 % 69.1 1.4 % Less: preferred stock dividends 0.3 — 0.3 — 0.3 — Less: net income attributable to noncontrolling interest 5.8 0.1 % 1.1 — 7.4 0.2 % Net income attributable to Company common shareholders $ 3.7 0.1 % $ 65.7 1.1 % $ 61.4 1.3 % T able of Contents