September 08, 2008
Bekaert Q1 trading update
Belgian steel cord and wire manufacturer Bekaert announced that in the first quarter of 2008 it achieved consolidated sales of EUR 593 million and combined sales of EUR 903 million, an increase of 15.3% YoY and 11.4% YoY respectively compared with the same period in 2007.
Bekaert consolidated sales increase was 13.5% from organic growth and 7.1% from the net movement in acquisitions and divestments, while fluctuations in several exchange rates had an adverse effect of 5.3%.
Consolidated sales
| Product | Sale | Change |
| Advanced wire products | 517 | 18.40% |
| Advanced materials | 47 | -0.20% |
| Advanced coatings | 28 | -9.30% |
| Intersegment sales and others | 1 | |
| Total | 593 | 15.30% |
(Sale in EUR million)
Combined sales
| Product | Sale | Change |
| Advanced wire products | 829 | 12.90% |
| Advanced materials | 47 | -0.20% |
| Advanced coatings | 28 | -9.30% |
| Intersegment sales and others | -1 | - |
| Total | 903 | 11.40% |
(Sale in EUR million)
Bekaert advanced wire products posted vigorous sales growth. The Asian and Latin American activity platforms in particular performed excellently, as did building products. Wire Europe had a strong quarter, with higher demand for galvanized wire products mainly. Wire North America’s firm sales increase by 13.2% driven partly by the start up of a trading operation for wire products, was canceled out entirely by exchange rate movements. Wire Latin America’s sound growth was the product of higher volumes and higher selling prices reflecting the immediate pass-through of price increases of raw material. Wire Asia performed well, thanks to the successful start-up of galvanized wire production at Karawang in Indonesia. The growth in building products sales was due partly to increased market penetration in Turkey and the Middle East.
