Bekaert performed strongly in advanced wire products. Sales prices are considerably higher compared to the first quarter of last year, due to the sharp rise in raw materials’ prices which marked 2004. Sales were negatively affected by currency movements.
Combined sales grew most rapidly in Latin America and Asia, whilst the markets in North America came under increased pressure. In Europe, Bekaert is experiencing increasing competition from the ‘dollar countries’ as a result of the strong position of the euro in relation to the dollar. Sales of building products remained at the same level as in the exceptionally strong first quarter of 2004. Sales of steel cord China showed an increase compared to the strong first quarter of 2004. The measures the Chinese authorities took to combat vehicle overloading, as reported previously, only began to have a negative influence on sales from the second quarter of last year. In the other regions, Bekaert achieved a strong growth in sales of steel cord products, backed up in part by supplies from its worldwide production platform. The third steel cord plant in China was officially inaugurated in April.

Bekaert achieved robust sales growth in advanced materials, largely due to the acquisition of Solaronics in combustion technologies.

Sales in advanced coatings dropped slightly, due to currency movements. At the end of March, the remaining shares in Sorevi S.A. were acquired; the company is active in the application of diamond-like coatings in a variety of industrial applications.

 

 

 

 

 

Whereas last year customers placed advanced orders in anticipation of increased raw materials’ prices, the opposite tendency is noticeable for some product lines in 2005. Due to diverse developments in raw materials’ markets, with regard to both prices and supply, and economic trends which show signs of weakening worldwide, Bekaert faces more uncertainty. The strong position of the euro in relation to the dollar is having more and more influence on the competitive landscape for Bekaert in Europe. Demand for steel cord products for reinforcing tires continues to be a growth-supporting factor worldwide.

 

 

 

 

 

 

 

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