Press Release
Kortrijk (Belgium), 21 February 2005.

Trading update fourth quarter 2004

20% sales growth in 2004

In the financial year 2004, Bekaert achieved consolidated and combined sales of € 2.2 billion and € 3.1 billion, an increase of 21% and 20% respectively. [1]^,[2]

Consolidated and combined sales by business segment in 2004         

 Combined sales by activity platform in 2004
The consolidated sales’ increase was 22% from organic growth and 3% from the net movement in acquisitions and divestments, while adverse currency movements amounted to 4%.

In 2004, Bekaert achieved strong organic sales growth in all business segments. Despite continuing volatility in the raw materials markets which necessitated increases in sales prices, the company succeeded in maintaining supplies to its customers.

Consolidated sales of advanced wire products also benefitted from external growth, with the acquisition of Bekaert Hlohovec, a.s. (Slovak Republic) and of the remaining shareholding of Contours Ltd (U.S.).

Consolidated sales of advanced materials were affected by the acquisition of Solaronics Technologies and the exit from composite profiles and consolidated sales of advanced coatings by the increased stake in Sorevi S.A. (France) and in Precision Surface Technology Pte Ltd (Singapore). 

Bekaert achieved solid sales growth in all regions. The company maintained its positions in Europe and North America and performed well in the growth markets of Latin America and Asia. Demand for steel cord products for tyre manufacturing was strong worldwide. In China, government regulations have resulted in a temporary slow-down in market growth, but during the fourth quarter, sales of steel cord China improved slightly.

Combined sales by geographical area in 2004

Events subsequent to the balance sheet date

On 12 January 2005, Bekaert signed an agreement to sell the shares of Bekaert Fencing NV to the investment company Gilde for an enterprise value of € 281.5 million.

The outlook is favourable despite the continuing challenges in the raw materials markets.