2009-03-13  Annual results 2008:  Bekaert delivers
 
Highlights [1]

Bekaert delivers vigorous growth, record results and continuing strong dividend

+59% EPS before non-recurring items: € 13.08 compared with € 8.22
+58% EBIT before non-recurring items of € 294 million
+38% EBITDA of € 412 million
+23% Consolidated sales of € 2.66 billion
+17% Combined sales of € 4 billion
+16% EPS: € 8.83 compared with € 7.63

Strong dividend of € 2.80 per share

The combination of strong organic growth in emerging markets, an innovation-based product mix, and overall price increases reflecting higher raw materials prices, resulted in vigorous sales growth in 2008.

Bekaert's continued efforts to enhance its global operational excellence and innovation strategy, combined with accelerated growth in emerging markets and fast growing industries, contributed to the strong earnings growth.

Record sales

In 2008, In 2008, Bekaert achieved consolidated sales of € 2.66 billion and combined sales of € 4.01 billion,
an increase of 22.5% and 17.3% respectively.  
Growth in consolidated sales stemmed 17.7% from organic growth, largely driven by passed-on raw material price increases, and 5.8% from the acquisitions in Vicson (Venezuela) and Proalco (Colombia). Fluctuations in several exchange rates largely compensated each other with a net negative impact of 1.0%.
 

Consolidated and combined sales by geographical area

2008

Consolidated sales

 

Combined sales

 

In millions of €

Variance

 

In millions of €

Variance

Europe

1 095

+4.2%

 

1 100

+4.0%

North America

559

+9.3%

 

589

+8.3%

Latin America

216

+204.0%

 

1 515

+21.4%; mso-highlight: red">

Asia

759

+50.2%

 

764

+47.8%

Other regions

33

-6.2%

 

42

-19.5%

Total

2 662

+22.5%

 

4 010

+17.3%

 

Consolidated and combined sales by business segment

2008

Consolidated sales

 

Combined sales

 

In millions of €

Variance

 

In millions of €

Variance

Advanced wire products

2 331

+26.4%

 

3 690

+19.2%

Advanced materials

199

-2.0%

 

199

-2.0%

Advanced coatings

121

-3.1%

 

121

-3.1%

Intersegment sales and others

11

-

 

-

-

Total

2 662

+22.5%

 

4 010

+17.3%

 

Advanced wire products

Key figures (in millions of €)

2007

2008

Consolidated sales

1 844

2 331

Operating result (EBIT) before non-recurring items

Operating result (EBIT)

215

208

352

290

Depreciation and amortization

106

158

EBITDA

314

448

EBITDA margin on sales

17.0%

19.2%

Combined sales

3 095

3 690

Share in result of the joint ventures

47

57

Combined sales growth by activity platform

Wire Europe

Wire North America

Wire Latin America

Wire Asia

  +7.3%

+19.2%

+19.8%

+73.8%

Building products

Steel cord China

Steel cord others

Other advanced wire products

+21.7%

+63.7%

  +1.4%

 -24.3%

Bekaert advanced wire products posted vigorous sales growth across nearly all activity platforms throughout 2008. Earnings increased significantly as a result of accelerated business development in emerging countries and Bekaert's continued efforts for product portfolio and capacity optimization.

-           Significant expansion in emerging markets

Steel cord China (+64%), wire Asia (+74%) and wire Latin America (+20%) represented 56% of the revenues of the advanced wire products business segment, versus 52% in the same period of last year. Combined with sales generated by the Central European activity platforms, total sales in emerging markets added up to over 70%.

 

-           Accelerated growth through innovation

Major investments in R&D and in Bekaert's production capacity for product innovations – especially when built up in emerging countries – created strong leverage on results. These innovation efforts allowed Bekaert to significantly improve profitability, taking maximum advantage of growth sectors such as energy and mining.

 

-           Adjusted production capacity in mature markets

In wire North America, sales grew by almost 20%. This strong growth was driven partly by the start-up of a sales and trading operation. Lower market demand in North America and in Western Europe has led to almost flat sales in steel cord others. Wire Europe experienced difficult market conditions, especially in the Western European platforms. Bekaert took appropriate actions in 2008 to adjust the wire and steel cord capacity in Belgium in line with declining demand.

 

Advanced materials

Key figures (in millions of €)

2007

2008

Sales

204

199

Operating result (EBIT) before non-recurring items

Operating result (EBIT)

17

17

1

-17

Depreciation and amortization

8

35

EBITDA

26

18

EBITDA margin on sales

Share in result of the joint ventures

12.6%

0

9.2%

-1

Combined sales growth by activity platform

Stainless

Fiber technologies

-33.5%

 +3.7%

Combustion technologies

Composites

   -5.6%

+42.9%

Throughout 2008, sales of advanced materials were relatively stable in the aggregate, but showed fluctuations by individual activity platform and ended with a 2% decline year-on-year. The sales drop in stainless was the result of decreased volumes and sustained pressure on margins from strong fluctuations in nickel-based raw materials prices. Other activity platforms operated in a highly competitive market environment and were impacted by the economic downturn towards the end of the year. Consequently, Bekaert advanced materials ended with an almost break-even operating result before non-recurring items.

 

Advanced coatings

 

Key figures (in millions of €)

2007

2008

Sales

124

121

Operating result (EBIT) before non-recurring items

Operating result (EBIT)

3

-1

4

3

Depreciation and amortization

12

8

EBITDA

11

11

EBITDA margin on sales

9.0%

9.2%

 

Combined sales by activity platform

Industrial coatings

-7.0%

Specialized films

-0.1%

 


 

 

Share in combined sales by activity platform

 

 

 

 

 

 

 

 


 

Both in terms of sales and results, the advanced coatings segment showed comparable year-on-year figures in the aggregate. Industrial coatings was particularly impacted by the economic downturn in the last months of the year, while the nominal growth of specialized film coatings (+6%) was canceled out entirely by exchange rate movements. Solid growth in industrial film applications compensated for the declining demand from residential and car film markets.

 

 

Other activities

 

Bekaert further increased its investments in research and development, totaling € 68.5 million in 2008 (+21%). These R&D expenses applied to the activities of the technology centers in Deerlijk (Belgium) and in Jiangyin (China). The engineering department, which is the main supplier of proprietary machinery for the company's investment programs, operated at a high activity level during the first nine months of the year, and adjusted to changing market circumstances and the subsequent investment spread from the fourth quarter onwards.

 

 

Financial Review

 

Continuing strong dividend

 

In the light of Bekaert’s strong performance in 2008 and confidence in its future, the Board of Directors will propose that the General Meeting of Shareholders on 13 May 2009 approve the distribution of a gross dividend of € 2.80 per share, compared with € 2.76 last year. If this proposal is accepted, the net dividend per share will amount to € 2.10 and the net dividend on shares with VVPR strip, entitling the holder to reduced withholding tax of 15%, will be € 2.38. The dividend will be payable as from 20 May 2009.

 

 

Non-recurring items

 

Non-recurring expenses totaled € 83.7 million and included provisions for the restructuring of the Belgian manufacturing operations of advanced wire products (€ 42.5 million); for production platform moves within Europe; for environmental liabilities; and for several asset impairments, including those related to carding solutions (other advanced wire products: € 10 million) and several activities within the advanced materials segment (€ 18.8 million), applying mainly to stainless and combustion technologies.

 

 

Excellent financial results

 

Bekaert achieved a record operating result (EBIT) before non-recurring income and expenses of € 294 million, compared with € 186 million for the financial year 2007 (+58%). This equates to an EBIT margin on sales before non-recurring income and expenses of 11.1%, compared with 8.6% last year. Including non-recurring items, EBIT was € 210 million (2007: € 175 million), representing an EBIT margin on sales of 7.9% compared with 8.0%.

EBITDA reached a record high € 412 million, compared with € 299 million in 2007 (+38%).

The increase in interest charges was due to the net debt position incurred to finance major capital expenditures and an increased working capital level in line with growth. Taxation on profit amounted to € 25 million compared with € 19 million in 2007.

Notwithstanding the transfer of Vicson and Proalco to the consolidated perimeter, the share in the results of joint ventures and associated companies totaled € 56 million (2007: € 47 million). This increase, reflecting the higher results posted by joint ventures, was mainly driven by the operations
in Brazil
.

The result for the period therefore attained € 192 million, compared with € 162 million in 2007. After third-party minority interests (€ 17.7 million as against € 8.7 million), the result for the period attributable to the Group was € 174 million, compared with € 153 million last year.

Bekaert ended the year with earnings per share of € 8.83 (2007: € 7.63), an increase of 16%.
Before non-recurring costs the earnings per share amounted to € 13.08 compared with € 8.22
a year ago, a significant increase of 59%.

Cash flow attributable to the Group totaled € 376 million as against € 277 million in 2007.

 

 

Strong balance sheet

 

As at 31 December 2008, shareholders’ equity represented 44% of total assets. Net debt increased to € 627 million (2007: € 448 million), mainly due to capital expenditure programs and increased working capital in line with growth. The gearing ratio (net debt to equity) was 53.5%.

Bekaert repurchased 238 800 of its own shares in 2008. The company canceled 161 000 shares, kept 55 000 in portfolio, and delivered 22 800 to option holders. This reduced the total number of outstanding shares to 19 783 625 as at year-end 2008.

 

 

Cash flow statement

 

Net cash flow from operating activities amounted to € 222 million (2007: € 221 million). Operating working capital increased by € 162 million to € 653 million, mainly reflecting organic growth. Cash flows from investing activities amounted to € 243 million, of which € 239 million from expansions in Asia, Slovakia and Belgium.

Acquisitions represented an investment of € 44 million (mainly the acquisition of the remaining 50% of the shares in Beksa Celik Kord Sanayi ve Ticaret AS, Turkey). Dividends received from joint ventures amounted to € 46 million.

The share buy-back program represented a cash outflow of € 20 million.


 

NV Bekaert SA (statutory accounts)

 

The Belgium based entity’s sales amounted to € 608 million, compared with € 606 million in 2007. Operating profit for the period was € 0.6 million, compared with € 46.3 million last year. Increased energy and labor costs, rising raw materials and consumables prices, along with asset impairments and provisions for environmental liabilities and restructuring plans explained the strong decline in profit.

 

 

Outlook

 

Consolidated sales from January onwards will include the revenues of Ideal Alambrec (Ecuador) and Prodac (Peru), as the regional holding company covering the businesses in Ecuador, Peru, Venezuela and Colombia came into effect on 1 January 2009. Bekaert holds 80% of the shares in this holding company. Consequently, all respective entities will be included in the consolidated perimeter as of the start of 2009.

Short-term visibility on market developments is extremely limited. However, Bekaert does not expect the current activity slowdown to last on a company-wide scale. The company's proven resilience now shows in its flexibility to optimally manage production capacity and capital spending in line with demand and to limit working capital and cost levels accordingly.

Notwithstanding the economic circumstances, Bekaert is confident that its broad geographical coverage with a strong presence in emerging markets, as well as its growing portfolio of product innovations and strong balance sheet, will be of strategic importance. Bekaert will closely monitor market developments and customer requirements, so advantage can be taken of opportunities the moment they arise.

 

 

Financial calendar

2008 annual report available on Internet                                                17      April              2009

First quarter trading update 2009                                                          13      May              2009

General Meeting of Shareholders                                                         13      May              2009

Dividend payable (coupon n° 10)                                                          20      May              2009

2009 half-year results                                                                          31      July               2009

Third quarter trading update 2009                                                         13      November      2009

 

 

The statutory auditor has confirmed that his audit procedures, which have been substantially completed, have revealed no material adjustments that would have to be made to the accounting information included in this press release. The consolidated financial statements have been prepared in accordance with IFRS as adopted by the European Union and the same accounting policies and methods of computation as in the December 31, 2007 annual consolidated financial statements were used.

 

 

In 2007, Bekaert achieved consolidated sales of € 2.2 billion and combined sales of € 3.4 billion, an increase of 8.2% and 7.0% respectively. [1]   [2]

The consolidated sales’ increase was 8.0% from organic growth and 2.5% from the net movement in acquisitions and divestments. Currency movements had a negative impact of 2.3%.

Consolidated and combined sales by business segment

 

2007

Consolidated sales

 

Combined sales

 

in millions of €

variance

 

in millions of €

variance

Advanced wire products

1 844

+9.2%

 

3 095

+8.4%

Advanced materials

204

+10.4%

 

204

+10.4%

Advanced coatings

124

-8.9%

 

124

-8.9%

Intersegment sales and others

2

-

 

-4

-

Total

2 174

+8.2%

 

3 419

+7.0%

Consolidated and combined sales by geographical area

 

2007

Consolidated sales

 

Combined sales

 

in millions of €

variance

 

in millions of €

variance

Europe

1 051

+7.5%

 

1 057

+5.1%

North America

511

-14.5%

 

544

-14.6%

Latin America

71

+124%

 

1 248

+12.2%

Asia

506

+36.9%

 

517

+33.9%

Other regions

35

+3.9%

 

53

-0.5%

Total

2 174

+8.2%

 

3 419

+7.0%

Advanced wire products

Key figures (in millions of €)

2007

2006

Consolidated sales

1 844

1 689

Operating result (EBIT) before non-recurring items

215

189

Operating result (EBIT)

208

177

Depreciation and amortization

106

99

EBITDA

314

276

EBIT margin on sales

11.3%

10.5%

EBITDA margin on sales

17.0%

16.4%

Combined sales

3 095

2 854

Share in result of  the joint ventures

47

51

Combined sales growth by activity platform

Wire Europe

Wire North America

Wire Latin America

Wire Asia

+10%

   -2%

+12%

+14%

Building products

Steel cord China

Steel cord others

Other advanced wire products

+11%

+48%

   -6%

   -2%

                                       

In 2007 combined sales of advanced wire products were 8.4% higher.

Despite the sustained pressure on margins from the rising cost of energy, raw materials and consumables, Bekaert achieved substantial growth in advanced wire products. The operating result was up 17.8%, mainly due to higher volumes in China and a better product mix.

Bekaert posted increased sales in 2007 of products with higher added value, in which the company has secured a substantial position in recent years. The rapid growth in the submarine energy transmission, green energy, telecommunication, mining, and oil and gas production segments translated into strong demand for reinforcing wire for cables and flat and profiled wire for flexible pipes, wires for hoisting cables, sawing wire and tire cord for off the road heavy equipment. These market segments are expected to continue to grow in 2008.

Wire Europe strengthened its position with the successful market launch of Bezinal®2000 wire products, the unique selling proposition of which is their high corrosion resistance, and higher sales of nylon-coated wire. Bekaert held its position in industrial low-carbon wires throughout Europe and further expanded its production platform in Central Europe.

Wire North America sales were adversely affected by an 8% negative exchange effect. Market conditions remained difficult, which chiefly impacted on sales of products for the automotive, agricultural and construction sectors, but the weak dollar created export opportunities, especially for reinforcement wire for flexible pipes.

Wire Latin America posted good sales figures from our joint ventures in the Andina region (Venezuela, Colombia, Peru and Ecuador). Bekaert further reinforced its position in this region by the acquisition of 100% of Vicson, S.A., in Venezuela, and a majority interest in Productora de Alambres Colombianos S.A. in Colombia. The operations in Brazil and Chile faced higher energy costs and strong competition from growing Asian imports.

Wire Asia posted higher sales in the local Chinese market, but exports were lower due to the increase in export duties.

Growth in building products was mainly driven by further global market penetration of Dramix® steel fibers for concrete reinforcement, another Bekaert product with high added value.

Steel cord China reported again substantial growth. To meet the strong market demand, the company invested in significant capacity expansion at its plants in Jiangyin (Jiangsu province) and Shenyang (Liaoning province) in 2007. This raised the total capacity for steel cord for the reinforcement of car and truck tires to 250 000 tonnes by the end of the year. The workforce has also grown steadily, to over 5 000.

In the other regions, sales of steel cord were adversely affected by increased pressure on prices and exchange rate effects. In North America, there was also a decline in demand, which Bekaert had already anticipated by closing its steel cord plant in Dyersburg.                                                                                          

In Bekaert’s other advanced wire activities, carding products were impacted by the start-up of the Chinese production plant in Wuxi and the effects of the restructuring of the European plants.

Advanced materials

 

Key figures (in millions of €)

2007

2006

Sales

204

184

Operating result (EBIT) before non-recurring items

17

16

Operating result (EBIT)

17

15

Depreciation and amortization

8

9

EBITDA

26

24

EBIT margin on sales

8.5%

8.2%

EBITDA margin on sales

12.6%

13.1%

Combined sales growth by activity platform

Stainless[4]

Fiber technologies

  +21%

    +9%

Combustion technologies

Composites

+12%

   -4%

In 2007 sales of advanced materials recorded growth of 10.4%.

In advanced materials, Bekaert posted higher sales of fiber technology products for electrically conductive textiles and diesel particulate filters. Bekaert had a commercial breakthrough in this latter application in 2007, stimulated by more rigorous environmental regulations.

The increase in sales of stainless mainly reflected the higher nickel prices. Bekaert entered into a cooperation agreement with Indian steel company Mukand in 2007 to form a joint venture to set up a plant in Maharashtra (India) for the production of stainless steel wire.

In combustion technology, there was stronger demand for drying systems for the paper industry. Sales growth was boosted by the acquisition of Aluheat B.V. in the Netherlands, which specializes in the latest technologies for condensing boilers.

Bekaert achieved higher capacity utilization in composites in the second half of the year, but the market remained extremely competitive.

Advanced coatings  

Key figures (in millions of €)

2007

2006

Sales

124

136

Operating result (EBIT) before non-recurring items

3

3

Operating result (EBIT)

-1

1

Depreciation and amortization

12

11

EBITDA

11

12

EBIT margin on sales

-0.6%

0.6%

EBITDA margin on sales

9.0%

8.5%

Combined sales by activity platform

Industrial coatings

   -7%

Specialized films

-11%

                                     

In 2007 sales of advanced coatings were down by 8.9%.

Competition was  intense in the industrial coatings market. Bekaert’s sales of sputter hardware were maintained at the 2006 level, with a particularly strong second half. Sales of sputter targets were higher in Europe and Asia, but declined in North America.

Demand for specialized film coatings in North America remained weak, but this was offset to some extent by higher sales in Europe and Asia.

Other activities

Expenditure on research and development, one of the main pillars of Bekaert’s strategy, increased by 8.7% in 2007. The company set up the Bekaert Asia Research & Development Center in Jiangyin (Jiangsu province, China), a new innovation facility which enables Bekaert to attune its product development more accurately to the needs of its Chinese customers. The facility works closely with the Bekaert Technology Center in Belgium, which continues to direct the company’s research efforts and was extensively upgraded in 2007.

The engineering department maintained a high level of activity as a major supplier of sophisticated equipment for the internal investment programs.

Sustainability

Bekaert continued to work in 2007 on optimizing both its product portfolio and its production processes in the interests of people, the environment and the local community. Around € 3 million was spent on reducing energy consumption in the production of advanced wire products. Bekaert also invested in the development of environmentally-friendly products, some of which, such as metal fibers for diesel particulate filters, were successfully launched on the market in 2007. For its involvement in various socially and educationally inspired community projects, Bekaert received several international corporate social responsibility awards, amongst others in China.

Profitability

Bekaert posted an operating result (EBIT) before non-recurring income and expenses of € 186 million (2006: € 163 million). This equates to an EBIT margin on sales before non-recurring income and expenses of 8.6% (2006: 8.1%). The main drivers of this improvement in the results were the strong sales growth, particularly in China, and rising sales of products with high added value.

Non-recurring expenses amounted to € 11.7 million (2006: € 16.8 million), largely due to the cost of the restructuring programs in Europe and the United States for the carding products and steel cord activities. This translated into an operating result (EBIT) of € 175 million (2006: € 146 million), which equates to an EBIT margin on sales of 8.0% (2006: 7.3%).

The increase in interest charges was due to the higher market interest rates and the increase in net debt due to the high capital expenditures and the share buy-back program which continued in 2007.

Taxation on profit amounted to € 19 million (2006: € 18 million).

The share in the results of joint ventures and associated companies amounted to € 47 million (2006: € 51 million), reflecting the lower results posted by the joint ventures in the Mercosur region (Brazil and Chile) and the restructuring costs relating to the closure of the steel cord plant in Australia, a joint venture with OneSteel.

The result for the period therefore came out at € 162 million, compared with € 148 million in 2006. After third-party minority interests (€ 8.7 million as against € 4.8 million in 2006), the result for the period attributable to the Group was € 153 million (2006: € 143 million).

Bekaert ended the year with earnings per share of € 7.63 (2006: € 6.64), an increase of 15%.

EBITDA amounted to € 299 million, compared with € 262 million in 2006. The cash flow attributable to the Group was €  277 million (2006: € 262 million).

Balance sheet

As at 31 December 2007, shareholders’ equity represented 50% of total assets. Net debt increased to € 448 million (2006: € 375 million), mainly due to the share buy-back program and the capital expenditure program. The gearing ratio (net debt to equity) was 39%.

In order to increase shareholder value, Bekaert repurchased and cancelled 1 157 645 of its own shares in 2007. This reduced the total number of outstanding shares to 19 831 000 as at year-end 2007. On 5 March 2008 a further 161 000 shares were purchased and subsequently cancelled.

Cash flow

Net cash flow from operating activities amounted to 221 million (2006: € 193 million). Operating working capital increased by € 42 million to € 494 million, mainly reflecting organic growth and new acquisitions. Cash from investing activities amounted to € 152 million. Investments in property, plant and equipment totaled € 192 million, mainly due to the capital expenditure programs in China, Belgium and Slovakia. Bekaert plans a similar level of investment in 2008.

Acquisitions represented an investment of € 15 million. Dividends received from joint ventures amounted to € 55 million and the share buy-back program represented a cash outflow of € 111 million.  

NV Bekaert SA (statutory accounts)  

The company’s sales amounted to € 606 million, compared with € 574 million in 2006, an increase of 5.5%. The profit for the period amounted to € 87 million, compared with € 60 million in 2006.  

Dividends  

In the light of Bekaert’s strong performance in 2007 and confidence in its future, the Board of Directors will propose that the General Meeting of Shareholders on 14 May 2008 approves the distribution of a gross dividend of € 2.76 per share, which represents an increase of 10.4%. If this proposal is accepted, the net dividend per share will amount to € 2.07 and the net dividend on shares with VVPR strip, entitling the holder to reduced withholding tax of 15%, will be
€ 2.346. The dividend will be payable as from 21 May 2008. 

Outlook 

Bekaert expects continuous growth in its activities in 2008, supported by strong capital investment programs of € 200 million, mainly in China, India, Indonesia and Russia. Management will pay particular attention to the rising wire rod prices and procurement. Bekaert is committed to defend its leadership positions worldwide, while managing difficult market conditions in the mature markets.  

The company will continue its drive for global operational excellence and innovation. Additional investments are planned in the course of 2008 to support research and development, including the installation of a new test facility for wire products at the Bekaert Technology Center (Belgium) and further expansion in the number of research staff, in order to provide maximum support to our global customer base and to ensure sustainable profitable growth.  

Financial calendar

2007 annual report available on the Internet                                           18      April              2008

First quarter trading update 2008                                                          14      May              2008

General Meeting of Shareholders                                                         14      May              2008

Dividend payable (coupon n° 9)                                                            21      May              2008

2008 half year results                                                                           1      August          2008

Third quarter trading update 2008                                                           7      November      2008

Fourth quarter trading update 2008                                                       20      February        2009

2008 results                                                                                       13      March           2009

 

 

The statutory auditor has confirmed that his audit procedures, which have been substantially completed, have revealed no material adjustments that would have to be made to the accounting information included in this press release. The consolidated financial statements have been prepared in accordance with IFRS as adopted by the European Union and the same accounting policies and methods of computation as in the December 31, 2006 annual consolidated financial statements were used, except for an option foreseen in IAS 19 Employee Benefits and the first application of IFRS 7 Financial Instruments: Disclosures. Bekaert decided to elect for the IAS 19 option to recognize actuarial gains and losses on defined-benefit plans directly in equity. This decision resulted in a retroactive restatement of the financial statements and the obligation to present a ‘statement of comprehensive income’, encompassing all income and expenses recognized both in the income statement and in equity. The impact of the adoption of IFRS 7 has been to expand the disclosures provided in the financial statements regarding the Group’s financial and capital risk management.

 

Annex 1: Press release March 14, 2008

Consolidated income statement

 

(in thousands of €)

2007

2006

Restated

 

 

 

CONTINUING OPERATIONS

 

 

Sales

Cost of sales

Gross profit

2 173 598

-1 739 669

433 929

2 009 587

-1 614 703

394 884

  

 

Selling expenses

Administrative expenses

Research and development expenses

Other operating revenues

Other operating expenses

Operating result (EBIT) before non-recurring items 

-98 239

-96 582

-56 700

14 597

-10 665

186 340

-96 697

-95 314

-49 562

23 279

-13 862

162 728

Non-recurring items

Operating result (EBIT)

-11 738

174 602

-16 794

145 934

 

 

 

Interest income
Interest expense
1

Other financial income and expenses

Result from continuing operations before taxes

2 517

-35 017

-8 482

133 620

3 735

-28 171

-6 557

114 941

 

 

 

Income taxes1

Result from continuing operations (consolidated companies)

-19 095

114 525

-18 370

96 571

 

 

 

Share in the results of joint ventures and associates

Result from continuing operations

47 100

161 625

50 991

147 562

 

 

 

DISCONTINUED OPERATIONS

 

 

Result from discontinued operations

-

-

 

 

 

RESULT FOR THE PERIOD

161 625

147 562

Attributable to :

the Group

minority interests

 

152 890

8 735

 

142 791

4 771


 

Annex 2: Press release March 14, 2008

Consolidated statement of comprehensive income

(in thousands of €)

2007

2006

Restated

Result for the period

161 625

147 562

Other comprehensive income

Exchange differences1

Cash flow hedges

Remeasurement of net assets held prior to acquiring control

Available-for-sale investements

Actuarial gains and losses (-) on defined-benefit plans1

Share of other comprehensive income of joint ventures and associates

Other

Deferred taxes relating to other comprehensive income1

Ohter comprehensive income for the period, net of tax

 

5 748

-4 168

9 140

8 139

26 255

1 349

94

-3 809

42 748

 

-30 948

-2 625

-

-462

11 760

829

-882

-2 253

-24 581

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

204 373

122 981

Attributable to:

the Group

minority interests    

 

196 008

8 365

 

119 983

2 998


Annex 3: Press release March 14, 2008

Consolidated balance sheet

(in thousands of €)

31 Dec 2007

31 Dec 2006

Restated

Non-current assets

1 335 478

1 305 560

Intangible assets

Goodwill

Property, plant and equipment

Investments accounted for using the equity method

Other non-current assets

Deferred tax assets1

51 887

70 118

917 617

215 560

74 851

5 445

57 510

76 965

824 158

237 747

90 591

18 589

Current assets

977 079

914 269

Inventories

Trade receivables

Other receivables

Short-term deposits

Cash and cash equivalents

Other current assets

Assets classified as held for sale

385 443

437 743

52 694

15 179

58 063

20 395

7 562

368 764

398 928

53 814

29 019

52 139

9 918

1 687

TOTAL ASSETS

2 312 557

2 219 829

 

 

 

Equity

1 146 586

1 108 978

Share capital

Retained earnings1

Other reserves1

Equity attributable to the Group

Minority interests

173 663

995 481

-70 990

1 098 154

48 432

173 300

1 004 780

-117 952

1 060 128

48 850

Non-current liabilities

525 507

516 354

Employee benefit obligations1

Provisions

Interest-bearing debt

Other non-current liabilities

Deferred tax liabilities1

120 796

25 151

322 495

2 055

55 010

151 042

26 664

274 373

3 845

60 430

Current liabilities

640 464

594 497

Interest-bearing debt

Trade payables

Employee benefit obligations

Provisions

Income taxes payable

Other current liabilities

Liabilities associated with assets classified as held for sale

252 953

231 745

83 381

12 434

12 642

44 434

2 875

217 952

227 827

76 042

13 379

16 270

43 027

-

TOTAL EQUITY AND LIABILITIES

2 312 557

2 219 829


 

Annex 4 : Press release March 14, 2008

Consolidated statement of changes in equity

 

(in thousands of €)

2007

2006

Restated

Opening balance

Effect of changes in accounting policies1

Total comprehensive income for the period

Creation of new shares

Acquisition of own shares

Dividends to shareholders of NV Bekaert SA

Dividends to minority interests

Other

Closing balance

1 108 978

-

204 373

1 841

-110 950

-49 590

-7 591

-475

1 146 586

1 130 278

-21 677

122 981

2 161

-56 078

-64 591

-7 613

3 517

1 108 978


Annex 5: Press release March 14, 2008

Consolidated cash flow statement

 

(in thousands of €)

2007

2006

Operating result (EBIT)

Non-cash and investing items included in operating result

Income taxes paid

174 602

115 100

-24 874

145 934

103 934

-16 822

Gross cash from operating activities

264 828

233 046

Change in operating working capital

Other operating cash flows

-41 933

-1 484

-31 947

-8 429

Cash from operating activities

221 411

192 670

New business combinations

Proceeds from disposals of investments

Dividends received

Purchase of intangible assets

Purchase of property, plant and equipment

Other investing cash flows

-14 736

4 210

54 715

-7 393

-192 415

3 744

-42 725

-

35 171

-8 555

-152 781

11 429

Cash from investing activities

-151 875

-157 461

Interest received

Interest paid

Gross dividend paid

Other financing cash flows

2 517

-33 340

-57 213

25 450

3 735

-25 773

-74 140

-16 992

Cash from financing activities

-62 586

-113 170

Net increase or decrease (-) in cash and cash equivalents

6 950

-77 961

Cash and cash equivalents at the beginning of the period

52 139

132 248

Effect of exchange rate fluctuations

-1 026

-2 148

Cash and cash equivalents at the end of the period

58 063

52 139


 

Annex 6: Press release March 14, 2008

Additional key figures

 

(in € per share)

2007

2006

Restated

Number of existing shares at 31 December

Book value1

Share price at 31 December

Weighted average number of shares

Basic

Diluted

Result for the period attributable to the Group

Basic1

Diluted1

Cash flow attributable to the Group

Basic1

Diluted1

19 831 000

57.82

92.00

 

20 039 098

20 169 889

 

7.63

7.58

 

13.82

13.73

20 946 779

52.94

94.70

 

21 491 565

21 596 843

 

6.64

6.61

 

12.21

12.15

 

(in thousands of €)                                                                             

Cash flow attributable to the Group (continuing operations)1

EBITDA

Depreciation and amortization

Capital employed

Operating working capital

Net debt

EBIT on sales before non-recurring items

EBIT on sales

EBITDA on sales

Equity on total assets1

Gearing (net debt on equity) 1

Average working capital on sales

276 866

298 579

123 977

1 533 704

494 083

448 084

8.6%

8.0%

13.7%

49.6%

39.1%

21.8%

262 306

262 156

116 222

1 410 281

451 647

374 744

8.1%

7.3%

13.0%

50.0%

33.8%

22.0%

 

NV Bekaert SA – Statutory Profit and Loss Statement (in thousands of €)

Sales

Operating result

Financial result

Profit from ordinary activities

Extraordinary results

Profit before income taxes

Income taxes

Result for the period

605 707

46 260

62 929

109 189

-24 204

84 985

1 783

86 768

574 078

47 695

63 429

111 124

-48 643

62 481

-2 313

60 168

 



[1] Combined sales are sales generated by consolidated companies plus 100% of sales of joint ventures and associates after

   intercompany elimination.

[2] All comparisons are made relative to the figures of the financial year 2006.

[3] Excluding ‘intersegment sales and others’.

[4] Following the internal repositioning of its advanced materials’ activities, Bekaert is reporting on its activities in stainless as a
  separate activity platform within the advanced materials business segment as from 1 January 2007. Previously, stainless was
  part of wire Europe. The figures for 2006 have been restated accordingly.

 

1 The restatement relates to the election for the IAS 19 option to recognize actuarial gains and losses on defined-benefit plans directly in equity.

1 The restatement relates to the election for the IAS 19 option to recognize actuarial gains and losses on defined-benefit plans directly in equity.

1 The change in accounting policies relates to the election for the IAS 19 option to recognize actuarial gains and losses on

defined-benefit plans directly in equity

1 The restatement relates to the election for the IAS 19 option to recognize actuarial gains and losses on defined-benefit plans directly in equity.

 

 

 

Contact info

Katelijn Bohez
Chief Communications Officer

President Kennedypark 18
8500 Kortrijk - Belgium

Telephone: +32 56 23 05 11
Telefax: +32 56 23 05 48

Contact Us

better together

  • transmission-cable

    Situation

    Alcan and Bekaert joined forces to install 210 miles of transmission cable

    Solution

    Bekaert seamlessly adjusted the lengths of the reels to help Alcan’s trucks drive through mountainous terrain

    Result

    Alcan could meet their customer’s delivery requirements

  • Algeciras-port

    Situation

    Optimal reinforcement required for the concrete pavement of the Algeciras port terminal in Spain.

    Solution

    Concrete strengthened with Dramix steel fibers, offering high fatigue resistance and load bearing capacity.

    Result

    The solution largely exceeds the Spanish standard for the design and construction of port pavement set at a durability of at least 25 years.

  • ski

    Situation

    Skiers count on safety when they go up the mountain

    Solution

    In close cooperation Bekaert developed superior quality wires that meet the technical customer requirements of ropeway constructors

    Result

    The customer handles the production of the cables, but also on-site weaving (or splicing) and installation. The cables have a life expectancy up to 40 years

  • Bezinal-2000

    Situation

    Although zinc provides a barrier to corrosion in most environments, specific conditions accelerate the corrosion process

    Solution

    Bekaert, drawing from its deep expertise in coating technology, has developed an advanced zinc/aluminum coating

    Result

    Bezinal® 2000 increases corrosion resistance with up to 500% compared to traditional galvanization

  • Bezinal-Plus-cardoor-lock

    Situation

    Although zinc provides a barrier to corrosion in most environments, specific conditions accelerate the corrosion process

    Solution

    Bekaert, drawing from its deep expertise in coating technology, has developed an advanced zinc/aluminum coating

    Result

    The Bezinal®PLUS coating eliminates expensive supplementary coatings for many applications, thus ensuring increased wear life for spring wire applications

  • Brickforce

    Situation

    Want to create long aesthetical walls and avoid movement joints

    Solution

    Applying Brickforce® allows me to double my joint distance

    Result

    With Brickforce® masonry reinforcement I can create new and exciting masonry wall design

  • Dramix-civil

    Situation

    You want to apply innovative solutions tailored to your projects

    Solution

    We analyze possibilities and come with economical solutions

    Result

    Save money and time during construction

  • Dramix-club

    Situation

    Learning about and finding your specific situation for an innovative and safe concrete reinforcement

    Solution

    Dramix® Club serves you with product info, design tools and execution details

    Result

    All specialists in the construction in industry can find ready-to-use tools & info

  • Drapo

    Situation

    Customer wants to design safely and economically

    Solution

    Bekaert offered and learned how to design industrial floors using the Drapo online software tool

    Result

    Customers have a fast way of design, with a full back-up team

  • Dramix

    Situation

    Looking for new opportunities for high performance constructions

    Solution

    Dramix® offers constructors an efficient and cost effective concrete reinforcement

    Result

    Gain on labor and time

  • concrete-pipe

    Situation

    We had huge rebar stocks and were dependent on our suppliers of traditional rebar

    Solution

    With Bekaert’s help, we switched to Dramix® for all our concrete pipe diameters

    Result

    Now we can respond easily to the specific demand of our customers

  • using-Dramix

    Situation

    I want to increase my productivity

    Solution

    Skip mesh placing by using Dramix®

    Result

    Can offer my customers a faster and more economical solution

  • Bekaert-lab

    Situation

    We need a safe solution and huge monthly volumes

    Solution

    Via tests in the Bekaert lab, we worked out the required fiber mix with the lowest cost to serve our customers

    Result

    Cost efficiency must not be a compromise on quality

  • Mesh-track

    Situation

    Our concrete taxiways were in a terrible state

    Solution

    Mesh track was the only alternative for us to solve the problem

    Result

    In an 8 year period, we had only positive experiences with this durable solution

  • Murfor

    Situation

    Want to create long aesthetical walls and avoid movement joints

    Solution

    Applying Murfor® allows me to double my joint distance

    Result

    Using Murfor®, I can create modern masonry walls

  • Stucanet

    Situation

    As an architect, I want unlimited possibilities to create round forms

    Solution

    Applying Stucanet® allows an easy execution

    Result

    Ease of use is not a compromise on creativity

  • burner

    Situation

    Customer demand for compact boiler design through a total solution.

    Solution

    Joint development of an environment-friendly burner system.

    Result

    Customers improve their competitiveness.

  • muselet

    Situation

    ICAS-HITE-Schneider group face ever higher demands and improving manufacturing standards for champagne muselets, the wire nets over the corks on sparkling wines

    Solution

    Development of Bekilacq®, a galvanized wire which we can lacquer in any color and doesn’t flake

    Result

    Bekaert continuous to cherish and support their unique partnership with the ICAS-HITE’s group

  • diesel-particulate-filter

    Situation

    Ever-tougher emission standards and legislation are forcing OEMs to develop ever-cleaner engines.

    Solution

    A sintered metal fiber web made of Bekaert metal fibers is used in a diesel particulate filter to lower the emission and to make filter maintenance redundant.

    Result

    Customers discover that filtration based on metal fibers is an excellent alternative to traditional ceramic filters.

  • booster

    Situation

    Increasing regulation and demand for product certification.

    Solution

    Dramix® booster: a proportioning device to integrate in ready mix depots.

    Result

    Automated mixing in set proportions.

  • Dramix-green

    Situation

    Fight corrosion as one of the main causes of damage to reinforced concrete.

    Solution

    Development of Dramix®Green containing a new corrosion inhibitor.

    Result

    Checking for surface defects in the concrete is no longer needed and rust stains are a thing of the past.

  • diesel-engine

    Situation

    Development of an environment-friendly diesel engine for trucks.

    Solution

    A revolutionary cable, strong and weather-proof.

    Result

    EURO 5-proof solution applied in a quarter of all trucks in Europe.

  • elevator

    Situation

    Nork-2 and Bekaert joined forces to develop a solution for a lightweight, energy efficient machine room-less elevator.

    Solution

    Bekaert created Flexisteel®, an thin but very durable elevator rope that runs perfectly on the small diameter sheaves of the compact Nork-2 machines. Its properties not only exceed those of conventional elevator cables, it also allows a more economical elevator design than flat belts.

    Result

    Thanks to Bekaert and Flexisteel® Nork-2 can service the elevator industry with a competitive MRL solution.

  • wiper-blade

    Situation

    Intensive relationship leads to co-development.

    Solution

    Developing a flat wire allowing simplified wiper blade production & design.

    Result

    New dynamic in wiper blade industry.

  • flexible-pipe

    Situation

    In the offshore oil and gas industry, flexible pipe manufacturers are looking more and more for wires with sour resistant properties.

    Solution

    Based on rolling and heat treatment technologies, Bekaert creates niche solutions tailored to the customers'needs.

    Result

    Customers receive added value way down the supply chain.

  • guardrail

    Situation

    In the US, medians are generally not protected by a guardrail, the resulting head-on accidents often take a huge toll.

    Solution

    The integration of a Bekaert cable in the K-12 rated median barrier system, developed by Gibraltar.

    Result

    A tight partnership between Bekaert and Gibraltar Cable Barrier System resulted in the installation of the new system in 15 different states across North America.

  • heating-cord

    Situation

    Cut emissions of Nox Nitrogen oxides in diesel engines, which involves injecting a urea-based liquid into the exhaust.

    Solution

    Bekaert heating cord is a special plastic-coated stainless-steel cable with a specific electrical resistance, reinforcing the injection hose.

    Result

    Today, Bekaert heating cord is fitted as standard to about a quarter of all the trucks in Europe.

  • high-voltage-power-line

    Situation

    Growing demand for transmission capacity, requiring resistance to increasing operating temperatures.

    Solution

    A steel core based conductor concept based on Bekaert wires with increased strength and an alternative coating

    Result

    Increased power grid capacity within the existing high voltage power lines network.

  • general-cable

    Situation

    Approximately 70% of transmission lines in the U.S. are more than 25 years old

    Solution

    Bekaert supplied General Cable all of the ACSR 7-wire strand for a project that involved 4 million feet of transmission cable

    Result

    Bekaert is a reliable global partner for General Cable’s future growth

  • shovel

    Situation

    Maximizing the efficiency of mechanical shovels by improving long-lasting wire rope

    Solution

    Incorporating a flat wire around the rope in the area where damage was occurring

    Result

    70% reduction in shovel downtime

  • wind-turbine

    Situation

    Ultra-strong and length-stable material is needed to reinforce synchronous belts which drive wind turbine blades.

    Solution

    A high-quality steel cord comprised of 83 twisted wires.

    Result

    Optimum tensile strength, length stability and adhesion with the rubber belt providing the wind turbine manufacturer with a substantially lighter, maintenance-free and space-saving solution.

  • steel-cord

    Situation

    Request for close contact with and tailor-made advice from Bekaert.

    Solution

    Bekaert teams visit customers’ plants to check on how our product is performing.

    Result

    Close to our steel cord customers, literally and figuratively.

  • HITE

    Situation

    Combining perfection and high production speed + maintain the rapid pace of growth.

    Solution

    The launch of a total quality management (TQM) project at the HITE plant in Spain.

    Result

    Higher output, a significant waste reduction and high cost savings for both parties.

  • wire-rod

    Situation

    Secure customer supply of our products despite extremely high market demand for wire rod and supply shortage.

    Solution

    Carry on Bekaert’s strategy of sourcing locally and maintaining good relations with suppliers.

    Result

    Continued production and delivery guarantee.

  • forklift

    Situation

    Preventing forklift accidents on the shop floor involving impact damage and personal injury

    Solution

    A wireless safety monitoring system that fully controls forklift access by means of specific identification keys, reports impact detection in real time, disables the forklift and sounds an audible alarm upon impact.

    Result

    Increased operator accountability has improved driving behavior and repair costs were brought down considerably.

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