Trading update third quarter 2004

Bekaert expects double-digit growth for 2004

Bekaert sustained its strong organic sales growth in the third quarter across all business segments and regions. The company has made further major efforts to manage continuing volatility in the raw materials markets, which has nevertheless inevitably translated into higher sales prices.
In the first nine months of 2004, Bekaert achieved an increase in consolidated and combined sales of 19% and 17% respectively(1)(2).   

The consolidated sales’ increase was 20% from organic growth and 3% from the net movement in acquisitions and divestments, while adverse currency movements amounted to 4%.

(1) All comparisons for the first nine months of 2004 are made relative to the same period in 2003
(2) Combined sales are the sales realised by the consolidated companies, joint ventures and associated companies
(3) Excluding intersegment sales

In a generally favourable economic environment, Bekaert performed well for most of its products in Western Europe and North America. In addition, the company performed well in the growth markets in Latin America and Central Europe.  In China, strict government regulations have resulted in temporary slow-down in the market growth for (steel cord reinforced) radial tyres.  With its investment programme, Bekaert, however, is convinced that the Chinese Government’s long-term objectives, which are to bring the logistical costs of the infrastructure down to the same level as those in Europe and North America, will lead to an important increase in the pace of radialisation, i.e. the rate at which consumers switch from using diagonal tyres to radial tyres.

Advanced wire products
Combined sales of this whole business segment increased by 19%.  Sales in wire Europe and wire North America both increased by 22%. The markets for wire Latin America and wire Asia performed well and sales increased by 26% and 65% respectively.  Sales for building products rose by 37%. Sales of steel cord China decreased by 4%, while sales of the activity platform ‘steel cord others’ increased by 20%.
Consolidated sales of advanced wire products improved with the acquisition of Bekaert Hlohovec, a.s. (Slovak Republic) and of the remaining shareholding of Contours Ltd (U.S.).

Fencing systems Europe
Combined sales of fencing systems Europe rose by 10%.  Sales of Bekaert Fencing NV increased by 14%, while sales of the Handling activity decreased by 20%.

Advanced materials
Combined sales of advanced materials increased by 11%. In fibre technologies, sales rose by 11%. Combustion technologies achieved an increase of 44%, amongst others due to the acquisition of Solaronics Technologies. Composites experienced a sales’ decrease of 26%, mainly due to the exit from composite profiles.

Advanced coatings
Combined sales for advanced coatings rose by 10%. In industrial coatings, sales went up by 16%.  Sales of specialised films increased by 5%.  Consolidated sales also rose as a result of the increased stake in Sorevi S.A. (France) and in Precision Surface Technology Pte Ltd (Singapore). 

Outlook
Bekaert expects a double-digit growth in 2004.

Financial calendar

Analyst Day	17    December  2004
Fourth quarter trading update and provisional 2004 results	21    February   2005
2004 results	17    March       2005
2004 annual report available on Internet	22    April         2005
First quarter trading update	11    May          2005
General Meeting of Shareholders	11    May          2005
Dividend payable (coupon nr. 6)	18    May          2005
2005 interim results	1      August      2005
Third quarter trading update	14    November  2005

                                             Press                                 Investor Relations
                                             Françoise Vanthemsche        Jacques Anckaert
                                             Tel. +32 56 23 05 71            Tel. +32 56 23 05 72

Profile Bekaert (www.bekaert.com) seeks sustainable profitable growth based on its two core competences: advanced metal transformation and advanced materials and coatings. Bekaert aims to consolidate its position as both market and technological leader around the world. With its broad range of high technological products, systems and services, Bekaert offers high added value for its clientele. Bekaert (Euronext Brussels: BEKB) is a European based company, headquartered in Belgium, employing 17 000 people.  In 2003 Bekaert, present in over 120 countries, generated sales of € 2.6 billion.