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
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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 |
SalesCost 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 |