Bekaert Expects Double Digit Growth for 2004

Bekaert sustained its sales growth across all business segments in the third quarter. However, after making further efforts to manage unpredictable raw material markets, sales prices inevitably grew.

In the first nine months of 2004, Bekaert achieved an increase in consolidated and combined sales of 19 per cent and 17 per cent respectively (1)(2). The consolidated sales’ increase was 20 per cent from organic growth and three per cent from the net movement in acquisitions and divestments, while adverse currency movements amounted to four per cent.

The company terms the economic environment “generally favourable,” and claims that most of its products performed well in Western Europe and North America. In addition, the company is said to have performed well in its growing markets in Latin America and Central Europe. Bekaert explains that strict government regulations in China have resulted in temporary slow-down in the market growth for (steel cord reinforced) radial tyres. However, with its investment programme in place the company is convinced that the Chinese Government’s long-term objectives, which are to bring the logistical costs of the infrastructure down to the same level as those in Europe and North America, will lead to an important increase in the rate at which consumers switch from using diagonal tyres to radial tyres.

Bekaert expects a double-digit growth in 2004.