14 November 2005
Third quarter trading update 2005 - Bekaert achieves 11% sales growth
In the first nine months of 2005, Bekaert achieved consolidated sales of € 1 440 million and combined sales of € 2 286 million, an increase of 11% and 14% respectively.
[1]
[2]
[3]
The consolidated sales’ increase was 10% from organic growth and 2% from the net movement in acquisitions and divestments, offset by adverse currency movements of 1%.
Consolidated and combined sales by business segment
First nine months 2005 |
Consolidated sales |
Combined sales |
|
in millions of € |
variance |
in millions of € |
variance |
Advanced wire products |
1 242 |
+11% |
2 044 |
+15% |
Advanced materials |
98 |
+14% |
98 |
+14% |
Advanced coatings |
100 |
+2% |
100 |
+2% |
Intersegment sales and others |
0 |
- |
44 |
- |
Total |
1 440 |
+11% |
2 286 |
+14% |
Combined sales by activity platform
Advanced wire products: |
+15% |
Advanced materials |
+14% |
Wire Europe |
-4% |
Fibre technologies |
+13% |
Wire North America |
-6% |
Combustion technologies |
+24% |
Wire Latin America |
+24% |
Composites |
-6% |
Wire Asia |
+22% |
|
|
Building products |
+16% |
Advanced coatings |
+2% |
Steel cord China |
+34% |
Industrial coatings |
-1% |
Steel cord others |
+19% |
Specialised films |
+3% |
Other advanced wire products |
+18% |
|
|
In the third quarter, Bekaert recorded a strong performance in advanced wire products but there is a definite slowing of demand in various markets in Europe and North America. In Latin America market demand remains stable. Only in Asia, and in China in particular, Bekaert realised accelerated growth. Sales in other advanced wire products increased, partly through the acquisition of ECC Card Clothing.
Bekaert also performed strongly in advanced materials. Besides organic growth, activities were also strengthened by the recent acquisition of Southwest Screens & Filters SA, in fibre technologies, and the earlier takeover of Solaronics, in combustion technologies.
Sales growth in advanced coatings remained limited. It was mainly the strongly project-driven activities in industrial coatings that underperformed. In specialised films, window film experienced strong growth.
With the opening of the new branch in Suzhou (China), Bekaert will strengthen its position in advanced materials and coatings in the Asian market.
Combined sales by geographical area
First nine months 2005 |
Combined sales |
|
in millions of € |
variance |
Europe |
762 |
+9% |
North America |
503 |
+6% |
Latin America |
770 |
+21% |
Asia |
216 |
+34% |
Rest of the world |
35 |
+5% |
Total |
2 286 |
+14% |
Outlook
While sales will continue to grow in the fourth quarter, Bekaert expects the weakening of the European and North American markets to continue.
Financial calendar
Fourth quarter trading update 2005 17 February 2006
2005 results 16 March 2006
2005 annual report available on Internet 21 April 2006
First quarter trading update 2006 10 May 2006
General Meeting of Shareholders 10 May 2006
Dividend payable (coupon nr. 7) 17 May 2006
2006 half year results 28 July 2006
Third quarter trading update 2006 10 November 2006
[1] The figures in this press release are unaudited.
[2] Combined sales are sales generated by consolidated companies, joint ventures and associates.
[4] Excluding ‘intersegment sales and others’.