UPDATE 2-Italy's Prysmian aims to deliver Encore deal benefits faster

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Adj EBITDA fell 3.5% in Q1 to 412 mln euros

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Margin on adj EBITDA improved to 11.2% in Q1

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Sales down 5.6% in Q1 to 3.687 bln euros

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Sees FY 2024 adj EBITDA of 1.575-1.675 bln euros

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Announced in April $4.2 billion purchase of Encore Wire

(Rewrites after analyst call)

By Giulio Piovaccari

MILAN, May 9 (Reuters) - Italy's Prysmian aims to reap the benefits from its purchase of Encore Wire faster than initially envisaged, the CEO of the world's biggest cable maker said on Thursday, as it predicted 2024 results at the upper end of its estimates.

Milan-based Prysmian last month announced the $4.2 billion acquisition of Encore Wire to expand in its North American profit powerhouse. The deal is set to be completed in the second half of the year.

Chief Executive Massimo Battaini told analysts the process was going well and no major issues were expected.

"We started already outlining and discussing with the counterpart the major action to be undertaken the day one after the closing ... to capture the expected 140 million synergies with a faster pace than what we anticipated," Battaini said.

Announcing the deal in April, Prysmian said it would generate annual run-rate synergies on its adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) of around 140 million euros ($150 million), both from commercial activities and cost cutting, within four years from closing.

That would help the group increase its earnings per share (EPS) by about 30%, it said.

Battaini added the deal should also boost Prysmian's adjusted EBITDA margin "almost a couple of points" from 10.6% in 2023.

Prysmian shares were up 1.6% at 0900 GMT, among the best performers on Italy's blue-chip index.

In the first quarter of this year, Prysmian's adjusted EBITDA fell 3.5% to 412 million euros, topping a 388 million euro analyst consensus forecast provided by the company.

The result was helped by the group's power grid and transmission businesses, offset by a decline at its industrial and construction and digital solutions segments, which were weighed by the North American market's performance.

The group's adjusted EBITDA margin, however, improved to 11.2% from 10.7% a year earlier.

Its order backlog stood at over 18 billion euros, Battaini said.

Before announcing the Encore deal, Prysmian guided for adjusted EBITDA of 1.575-1.675 billion euros and cash generation of 675-775 million euros this year. ($1 = 0.9321 euros) (Reporting by Giulio Piovaccari; Editing by Christopher Cushing and Mark Potter)