28-07-2003



28 July 2003   First Half Year results 2003

Bekaert confirms profit improvement

Bekaert, world leader in advanced metal transformation and coating technologies, headquartered in Belgium, announces today its first half-year results for 2003. 

  • The consolidated net result of the Group increased from € 9.4 million last year to € 43.7 million.  
  • EBIT to sales amounts to 7.3 %.
  • The share in the result of the joint ventures and associated companies increased by 50 %.

Sales

At constant currencies, consolidated sales are 3.4 % up while combined sales (subsidiaries, joint ventures and associates) were flat. Taking into account the impact of the stronger euro, consolidated sales decreased by 5.4 % and combined sales by 10.4 % compared with 2002.

 

 

Consolidated sales

Combined sales

in millions of euros

1H03

1H02

% D

1H03

1H02

% D

Wire

Steelcord

Bekaert Fencing

Bekaert Advanced Materials

Others

Intersegment

319
308
217
106
27

(44)

367
306
218
113
26

(44)

-13.2%

+0.8%

-0.3%

-6.2%

+3.8%

666
345
260
110
27

(45)

811
343
263
127
26

(48)

-17.9%

+0.5%

-1.1%

-13.7%

+3.8%

 

Total

933

986

-5.4%

1 363

1 522

-10.4%

 

 

Consolidated sales

Combined sales

in millions of euros

1H03

1H02

% D

1H03

1H02

% D

European Union

Central & Eastern Europe

North America

Latin America

Asia

Rest of World

465

95

245

13

102

13

490

51

297

18

86

44

-5.1%

+87.8%

-17.5%

-29.5%

+18.9%

-71.1%

516

95

287

339

104

22

545

51

363

416

95

52

-5.3%

+87.8%

-21.0%

-18.7%

+9.5%

-58.0%

Total

933

986

-5.4%

1363

1 522

-10.4%

 

Combined sales of Bekaert Advanced Materials, excluding Unisolar, decreased by 4.7 %.  At constant currencies, combined sales were up 5.7 %. The hard winter and delayed governmental orders in North America temporarily affected Bekaert Specialised Films.

Combined sales of Steelcord remained at the level of previous year. However, at constant currencies, combined sales were up 13 % confirming the worldwide increase of sales volumes.

Combined sales of Wire were down 18 %. The decrease is largely explained by the weaker demand in Europe and North America, a stronger euro and the effect of the closure of some low margin activities.

Combined sales of Bekaert Fencing decreased by 1.1 % compared with previous year. 

Profitability

Margins on sales continue to improve due to a better product mix, a strict cost control, the successful implementation of the restructuring programmes, and the high activity level in Steelcord, particularly in China.

EBIT to sales was 7.3 %. EBIT amounted to € 68.3 million, after € 4.4 million non-recurring charges, to be compared with € 20.8 million, after € 47.5 million restructuring provisions, in 2002.

The share in the result of the joint ventures and associates increased by 52 % to € 18 million, due to the elimination of the losses from Unisolar, which was divested in May 2003, and to the good performance of the Latin American joint ventures. 

Bekaert realised a consolidated net profit of the Group of  € 43.7 million in the first half of 2003 (2002: € 9.4 million).

Cash flow

The operational cash flow (EBITDA) amounted to € 131.1 million, an increase of 29 % (EBITDA 2002 : € 101.5 million). This represents 14 % on sales compared with 10 % in 2002. Consolidated cash flow reached € 114.2 million, an increase of 24 %.

Capital expenditure

Capital expenditure of the consolidated companies was € 41 million during the first half of 2003 versus € 37 million during the same period last year. A higher figure is expected in the second half, reflecting the impact of the important investment programme in China.   

Balance Sheet

The gearing ratio was 46.8 % (2002: 48.1 %). Consolidated net debt decreased from € 463 million (June 2002) to € 412 million (June 2003).

Outlook

Bekaert continues to face difficult macro-economic conditions and the impact of a strong euro. While the demand of several products in Europe and North America is under pressure, Steelcord remains good.  

end of the press release.

See annexes : Consolidated Income Statement, Consolidated Balance Sheet, Consolidated cash flow statement, Key figures per share, Additional key figures, and the Profit and Loss Statement for N.V. Bekaert S.A.

Half year statements are unaudited

Important dates:

Third quarter trading update                                     14 November  2003

Bekaert Analyst Day                                              19 December  2003

Fourth quarter and provisional 2003 results                 9 February   2004

Announcement of 2003 results                                18 March       2004

 

The consolidated 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


Press release dd. 28 July 2003                                               Appendix 1

Consolidated Income Statement

in thousands of euros

1st half 2003

1st half 2002

Sales

Cost of sales

932 698

<734 085>

986 121

<793 143>

Gross profit

198 613

192 978

Distribution & Selling expenses

General & Administrative expenses

Research and Development expenses

Other revenue

Other expenses

<57 196>

<52 828>

<18 734>

9 412

<10 950>

<57 977>

<52 695>

<18 898>

9 144

<51 726>

Result from operations

68 317

20 826

Interest income & expenses

Other non-operating income & expenses

<18 340>

<9 474>

<14 922>

<5 772>

Result from ordinary activities before taxes

40 503

132

Income taxes

<9 300>

<893>

Result from ordinary activities after taxes

31 203

<761>

Share in the result of the equity companies

Amortization goodwill on companies accounted for under the equity method

Minority interest

Extraordinary items

19 907

<1 937>

<5 482>

0

13 895

<2 053>

<1 640>

0

CONSOLIDATED NET RESULT OF THE GROUP

43 691

9 441

 

 

Goodwill

Net result before goodwill

4 281

47 972

9 749

19 190

 

 


Press release dd. 28 July 2003                                                                                 Appendix 2

Consolidated Balance Sheet

 

in thousands of euros

1st half 2003

1st half 2002

 

1st half 2003

1st half 2002

Non-current assets

1 165 122

1 276 239

Equity

837 895

923 468

Intangible assets

52 855

57 490

Capital

170 000

170 000

Goodwill

82 214

102 732

Reserves, retained earnings, adjustments

667 895

753 468

Property, plant & equipment

760 064

830 990

Minority interest

41 852

38 907

Investments accounted for under the equity method

196 292

238 578

Non-current liabilities

429 114

516 966

Other investments

73 697

46 449

Provisions

173 676

173 025

Current assets

863 204

858 288

Financial liabilities

237 199

337 332

Inventories

333 822

314 026

Other amounts payable

18 239

6 609

Trade receivables

369 048

383 187

Current liabilities

654 684

568 848

Other amounts receivable

66 589

59 100

Financial liabilities

302 064

237 081

Cash

57 857

55 304

Trade payables

197 086

180 811

Other liquid assets

21 707

14 739

Other current liabilities

145 855

135 913

Deferred charges & accrued income

14 181

31 932

Accrued charges and deferred income

9 679

15 043

Deferred tax assets

10 724

1 483

Deferred tax liabilities

75 505

87 821

TOTAL ASSETS

2 039 050

2 136 010

TOTAL EQUITY AND LIABILITIES

2 039 050

2 136 010

 


Press release dd. 28 July 2003                                                Appendix 3

Consolidated cash flow statement

(in thousands of euros)

1st half 2003
1st half 2002
Cash provided by <used in>

Operating activities

Investing activities

Financing activities

 

38 992

<48 331>

16 689

 

128 776

<27 899>

<103 897>

Net cash increase <decrease>

7 350

<3 020>

Key figures (per share)

EBITDA

EBIT

EPS (Earnings per share)

EPS before goodwill

Cash flow

Sales

Book value

Share price per 30 June

Number of shares

5.93

3.09

1.98

2.17

5.16

42.16

40.03

40.70

22 121 630

4.58

0.94

0.43

0.87

4.16

44.51

43.43

47.95

22 157 374

Additional key figures (in thousands of euros)
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

114 220

131 109

135 509

60 448

4 281

1 290 105

412 059

411 777

7.3 %

7.8 %

46.8 %

20.5 %

92 158

101 490

148 990

72 968

9 749

1 391 360

421 956

462 650

2.1 %

7.0 %

48.1 %

21.4 %

N.V. BEKAERT S.A. – STATUTORY  -  Profit and Loss Statement (in millions of euros)

Sales

Operating expenses

257.6

<252.7>

347.7

<338.7>

Operating result

4.9

9.0

Financial results

35.2

3.0

Profit from ordinary results

40.1

12.0

Extraordinary results

32.4

<6.6>

Result before income taxes

72.5

5.4

Income taxes

0

0

Result of the year

72.5

5.4

 

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