2005-11-14



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’.

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