2003-03-17



13 March 2003      Annual results of the Bekaert Group for 2002

The Bekaert Group, a world leader in metal transformation and advanced coating technologies, headquartered in Belgium, announced today its results for the year 2002. 

  • Result from operations (before non-recurring items) increased by almost 70 %
  • A record operational cash flow (EBITDA before non-recurring) of €268 million, an increase of 23%
  • Non-recurring provisions of €144 million due to restructuring, closure of activities and impairments
  • A consolidated net loss of €49.5 million
  • A sharp improvement of the debt position and lower working capital
  • A proposed dividend of gross €1.68 per share

Sales

Combined sales for the subsidiaries, joint ventures and associates remained constant at €2.8 billion.  At €1.9 billion, consolidated sales were up by 3.8 % in spite of the negative impact of the low dollar and currency movements of 2.1%. Sales of the joint ventures and associates decreased by 7.1 % to €0.9 billion, largely due to the termination of some joint ventures including Hikari Corporation (Japan) and Netlon Sentinel Limited (United Kingdom). 

Sales per business unit

 

Total combined sales

Consolidated sales

in millions of euros

%

% change

%

% change

Wire

Steelcord

Bekaert Fencing

Bekaert Advanced Materials

Others

Sales intersegment

1 457

677

469

243

58

-94

50.2%

23.3%

16.2%

8.4%

1.9%

-2.2%

0.8%

-3.4%

25.2%

 

 

674

605

390

220

58

-84

34.6%

31.1%

20.0%

11.3%

3.0%

-0.1%

1.4%

0.7%

34.4%

 

 

Total

2 810

100%

-0.2%

1 863

100%

+ 3.8%

 

Sales geographical spread

 

Total combined sales

Consolidated sales

in millions of euros

%

% change

%

% change

European Union

Rest of Europe

North America

Latin America

Rest of World

999

144

678

739

250

35.6%

5.1%

24.1%

26.3%

8.9%

-2.3%

6.6%

0.2%

-2.0%

37.7%

906

144

553

30

230

48.7%

7.7%

29.7%

1.6%

12.3%

-0.1%

6.7%

1.9%

58.6%

19.9%

Total

2 810

100%

-0.2%

1 863

100%

+3.8%

Consolidated net result of the Group

Bekaert made a consolidated net loss of €49.5 million, mainly due to non-recurring items and impairment charges. The strong operating results have been negatively impacted by an impairment charge of €84 million on the existing financial fixed assets of Unisolar on grounds of prudence and in strict application of the IFRS accounting rules. The impairment had no impact on cash flow.  A charge of €60 million was related to restructuring and closure of plants, mainly in the business unit Wire and Bekaert Fencing.  The share in the result of the joint ventures and associates increased significantly from
€17 million to €23 million, thanks to good results in the Latin American markets. 

Profitability

The result from operations (EBIT) was €64.2 million, compared with €59.5 million in 2001.  Bekaert has taken significant steps to reduce its cost base and its working capital and has given priority to its long-term strategy, while maximising cash flow. This explains the decrease in selling and administrative expenses and the increase in R&D expenditures.  The EBIT margin, as a percentage of sales, remained constant at 3.4 %.  Excluding non-recurring charges, the margin amounted to 6.6 %.  After non-recurring items, earnings per share were negative at €2.24.

Cash flow

The EBITDA, before non-recurring, reached a record of €268 million, an increase of 23%. Consolidated cash flow amounted to €202 million and the operational cash flow (EBITDA) amounted to €226 million, reaching 12.1% on sales compared with 11.6% in 2001. 

Capital expenditures

Excluding acquisitions, capital expenditure for the consolidated companies amounted to €78 million compared with €122 million in 2001.  Total capital expenditure for the consolidated companies and for the joint ventures and associates was €119 million compared with the exceptionally high level of €222 million in 2001. 

Balance Sheet

The balance sheet remains strong.  At the end of 2002, shareholders’ equity accounted for 44.9% of total assets.  Net debt decreased from €544 million at the end of 2001 to €366 million at the end of 2002.  The decrease of €178 million is largely due to higher cash flow and currency movements of €51 million.  The gearing ratio at 31 December, defined as net debt on equity, was 41.8%.  Working capital decreased from €421 million to €351 million, a decrease of 17%.

N.V. Bekaert S.A. (Statutory Accounts)

Sales of the parent company amounted to €663.4 million, a decrease of 2.4% compared to 2001.  The loss for the year was €61.3 million.

Dividend

The Board of Directors will propose at the Annual General Meeting to maintain the gross dividend for 2002 at 1.68 euros per share.

Outlook

The outlook remains uncertain and will depend largely on world economic trends and political decisions at an international level and by the effect of the dollar/€ rate. Even the short-term prospects are hard to discern. In the early months of 2003, incoming orders for Wire are weakening, but Steelcord and BAM have returned to the pre December level.

End of this press release.

(See annexes : Consolidated Income Statement, Consolidated Balance Sheet, Changes in Shareholders Equity, Consolidated cash flow statement, Key figures, Additional key figures and Profit and Loss Statement for N.V. Bekaert S.A.)

Financial calendar

2002 annual report available on Internet             18     April            2003

First-quarter trading update                              14     May             2003

Annual General Meeting                                  14     May             2003

Dividend payable (coupon no. 4)                       21     May             2003

Second-quarter and 2003 interim results           28     July              2003

Third-quarter trading update                             14     November      2003

Fourth-quarter and 2003 provisional results         9     February       2004

Announcement of 2003 results                        18      March          2004

2003 annual report available on Internet            19      April            2004

First-quarter trading update                             12      May             2004

Annual General Meeting                                 12      May             2004

Dividend payable (coupon no. 5)                      19      May             2004

Financial analysts

Teleconference on 2003 interim results            28      July             2003

Analysts’ day at Bekaert                                19      December    2003

Analysts’ meeting on 2003 results                  18      March          2004

 

The statutory auditor has confirmed that their 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 annual accounts are established in conformity with the applicable Belgian law and regulations, on the understanding that the permission has been granted by the Belgian Banking and Finance commission to apply valuation rules which depart in some respects from the Belgian accounting legislation, but which are in accordance with the regulations of the 7th European Directive. These departures have been applied for the first time to the annual accounts of 2001 and 2000 (restated in 2001) and are based on the ‘International Financial Reporting Standards’ (previously IAS) issued by the ‘International Accounting Standards Board’, without being fully compliant with IFRS/IAS, due to the incomplete segment reporting provided by Bekaert.

 

All press releases are available (in Dutch, English and French) on Internet: www.bekaert.com


Appendix 1

Press release dd. 13 March 2003

Consolidated Income Statement

in thousands of euros

2002

2001

Sales

Cost of sales

1 863 467

(1 489 779)

1 795 909

(1 466 894)

Gross profit

373 688

329 015

Distribution & Selling expenses

General & Administrative expenses

Research and Development expenses

Other revenue

Other expenses

(109 958)

(108 891)

(36 068)

19 629

(74 158)

(116 070)

(114 092)

(33 496)

22 119

(27 963)

Result from operations (EBIT)

64 242

59 513

Interest income & expenses

Other non-operating income & expenses

(32 927)

(100 595)

(30 425)

5 360

Result from ordinary activities before taxes

(69 280)

34 448

Income taxes

7 406

4 554

Result from ordinary activities after taxes

(61 874)

39 002

Share in the result of the equity companies

Amortisation goodwill on companies accounted for under the equity method

Minority interest

Extraordinary items

23 096

(4 043)

(6 690)

0

16 565

(4 072)

(3 493)

(196)

CONSOLIDATED NET RESULT OF THE GROUP

(49 511)

47 806

 

  


 

Appendix 2

Press release dd. 13 March 2003

Consolidated Balance Sheet

in thousands of euros

2002

2001

 

2002

2001

Non-current assets

1 163 904

1 417 246

Equity

831 903

1 021 410

Intangible assets

54 950

60 736

Share Capital

170 000

170 000

Goodwill

72 178

93 342

Reserves, ret. Earnings & adjustments

661 903

851 410

Property, plant & equipment

777 586

910 015

Minority interest

44 343

42 548

Investments accounted for under the equity method

204 637

300 899

Non-current liabilities

549 736

646 749

Financial assets & others

54 553

52 254

Employee benefit obligations and provisions

183 382

177 948

 

 

 

Financial liabilities

342 912

462 920

Current assets

784 857

866 575

Other amounts payable

23 442

5 881

Inventories

311 826

342 681

Current liabilities

456 683

479 054

Amounts receivable

390 521

416 213

Financial liabilities

152 020

195 225

Financial assets

21 379

33 582

Trade payables

184 921

155 535

Cash & cash equivalents

52 381

58 324

Other current liabilities

112 080

117 946

Deferred charges & accrued income

8 750

15 775

Accrued charges and deferred income

7 662

10 348

Deferred tax assets

4 419

835

Deferred tax liabilities

70 515

94 895

TOTAL ASSETS

1 953 180

2 284 656

TOTAL EQUITY AND LIABILITIES

1 953 180

2 284 656


  

Press release dd. 13 March 2002

Appendix 3

Changes in Shareholders Equity

(in € 000)

2002
2001
Opening balance
Result of the Group

Currencies and others

Cancellation of shares

Dividends

Closing balance

1 021 410

(49 511)

(101 301)

(1 471)

(37 224)

831 903

1 031 566

47 806

(14 976)

(5 521)

 (37 465)

1 021 410

Consolidated cash flow statement (in € 000)
Cash provided by <used in>

Operating activities

Investing activities

Financing activities

 

248 816

(60 291)

(190 737)

 

207 883

(325 637)

127 350

Net cash increase (decrease)

(2 212)

9 596

Key figures (per share)

EBITDA

EBIT

EPS (Earnings per share)

EPS before goodwill

Cash flow

Sales

Book value

Gross dividend

Net dividend

Net dividend with VVPR-strip

Share price per 31 December

Number of shares

10.21

2.90

(2.24)

(1.55)

9.14

84.24

39.61

1.68

1.26

1.43

43.15

22 121 630

9.36

2.69

2.15

2.59

9.02

81.05

48.02

1.68

1.26

1.43

43.27

22 157 374

Additional key figures (in € 000)
Cash flow

Operational cash flow (EBITDA)

EBITDA (before non-recurring)

Depreciation and amortisation

Amortisation of goodwill

Capital employed

Working capital

Net debt

EBIT/sales

EBIT/sales (before non-recurring)

Gearing

Average working capital/sales

202 228

225 779

267 515

149 442

15 152

1 255 974

351 261

365 995

3.4%

6.6%

41.8%

20,7%

199 854

207 490

218 390

145 618

9 504

1 485 461

421 368

543 908

3.3%

4.1%

51.1%

24.0%

N.V. BEKAERT S.A. – STATUTORY  -  Profit and Loss Statement (in € 000)

Sales

Operating expenses

663 390

(655 359)

679 668

(681 134)

Operating result

8 031

(1 466)

Financial results

1 532

72 363

Profit from ordinary results

9 563

70 897

Extraordinary results

(70 848)

1 593

Result before income taxes

(61 285)

72 490

Income taxes

(1)

(130)

Result of the year

(61 286)

72 360

 

We use cookies in order to let you fully experience this website. Cookies are small files we put in your browser to mainly track usage or remember your settings of our site but they don’t tell us who you are. Want to know more about how we use these Cookies please read our Cookie policy.
Close