Bekaert: first half year 2016 results
Bekaert continues performance improvement trend
8.6% REBIT, up 40% to € 157 million on strong volume growth and improved business performance
Bekaert achieved strong volume and margin growth in the first half of 2016. The Group's 6% volume growth stemmed from firm demand in automotive and solar markets and steadily increasing sales volumes in industrial steel wire and construction markets. The robust volume growth was more than offset in Bekaert's top line by adverse currency movements (-3%), lower wire rod prices (-4%) which we pass on to our customers, and price erosion and mix effects (-3%). The slowdown in oil and gas markets affected the product-mix due to declining demand for profiled wires and steel ropes.
Bekaert's overall stronger business portfolio and the growing impact of the various global transformation programs drove a significant profit improvement. REBIT increased by 40% to € 157 million at a REBIT margin on sales of 8.6%, compared with 5.9% in the first half of 2015.
Bekaert achieved excellent results in EMEA (13.6% REBIT margin), very strong margin growth in Asia Pacific (12.2%, more than doubling the margin of the first half of 2015) and Latin America (9.3% REBIT margin, up 70%), and improved margins in North America (4.8%, up 30%).