Belgium headquartered leading steel cord and wire manufacturers Bekaert has achieved consolidated sales of EUR 1.38 billion in January-March 2022 quarter, up by 23.2% YoY due to a positive impact from wire rod price changes. Bekaert said “Strong sales growth in all four business units on lower volumes across several business activities and continued pricing discipline in an inflationary environment and positive price-mix effects on the back of a structural improvement of the business portfolio.”While the global macro environment remains unstable due to the developments in Ukraine, the resurgence of the Covid-19-pandemic in China, and the supply chain issues and cost inflation, Bekaert continues to execute its transformation agenda at a high pace. Bekaert first quarter actions have been specifically geared towards1. Leveraging the benefits from our global footprint and local services and sourcing channels, making us well positioned to address the ongoing deglobalization trends2. Driving further agility of the supply chain management, which has allowed securing supply continuity to customers & adjusting the sourcing channels that were affected by the situation in Ukraine3. Strong pricing discipline and execution, significantly offsetting the overall cost inflation4. Seizing the growth opportunities arising from sustainability and innovation trends by strong growth in low-carbon concrete reinforcement solutions & successful project wins in offshore energy tenders, progress in building a leading innovation position in hydrogen electrolysis technologies, and other product and service solutions supporting the energy transitionMarket developmentsStrong momentum in European and North American markets; recovering activity level in Latin America after a soft quarter start; subdued demand in China as a result of the stringent Covid-19 lockdown measuresAcceleration of the reverse globalization is due to continued global supply chain interruptions on the back of raw material shortages and freight bottlenecksContinued high raw material prices and surging cost inflation of transportation and energyOutlook - While the 2022 outlook remains particularly volatile, Bekaert projects the current organic revenue run rate to continue throughout the year. Despite the overall increased uncertainty and high cost inflation, Bekaert’s profitability
Belgium headquartered leading steel cord and wire manufacturers Bekaert has achieved consolidated sales of EUR 1.38 billion in January-March 2022 quarter, up by 23.2% YoY due to a positive impact from wire rod price changes. Bekaert said “Strong sales growth in all four business units on lower volumes across several business activities and continued pricing discipline in an inflationary environment and positive price-mix effects on the back of a structural improvement of the business portfolio.”While the global macro environment remains unstable due to the developments in Ukraine, the resurgence of the Covid-19-pandemic in China, and the supply chain issues and cost inflation, Bekaert continues to execute its transformation agenda at a high pace. Bekaert first quarter actions have been specifically geared towards1. Leveraging the benefits from our global footprint and local services and sourcing channels, making us well positioned to address the ongoing deglobalization trends2. Driving further agility of the supply chain management, which has allowed securing supply continuity to customers & adjusting the sourcing channels that were affected by the situation in Ukraine3. Strong pricing discipline and execution, significantly offsetting the overall cost inflation4. Seizing the growth opportunities arising from sustainability and innovation trends by strong growth in low-carbon concrete reinforcement solutions & successful project wins in offshore energy tenders, progress in building a leading innovation position in hydrogen electrolysis technologies, and other product and service solutions supporting the energy transitionMarket developmentsStrong momentum in European and North American markets; recovering activity level in Latin America after a soft quarter start; subdued demand in China as a result of the stringent Covid-19 lockdown measuresAcceleration of the reverse globalization is due to continued global supply chain interruptions on the back of raw material shortages and freight bottlenecksContinued high raw material prices and surging cost inflation of transportation and energyOutlook - While the 2022 outlook remains particularly volatile, Bekaert projects the current organic revenue run rate to continue throughout the year. Despite the overall increased uncertainty and high cost inflation, Bekaert’s profitability
