Bekaert Sales Top 4 billion Euros in 2008

Bekaert, supplier of steel cord to the tyre industry, has reported consolidated 2008 sales of 2.66 billion euros and combined sales of 4.01 billion euros, and increase of 22.5 per cent and 17.3 per cent respectively. Growth in consolidated sales stemmed 17.7 per cent from organic growth, largely driven by passed on raw material price increases, and 5.8 per cent from the company’s acquisitions in Vicson (Venezuela) and in Proalco (Colombia). Fluctuations in several exchange rates largely compensated each other with a net negative impact of 1.0 per cent. Even in the fourth quarter of 2008, the economic downturn notwithstanding and compared with a strong last quarter of 2007, Bekaert posted consolidated growth of 5 per cent.

Increased demand and corresponding elevated local production capacity combined to produce growth in the Asian wire and steel cord activity platforms. Lower market demand in Western Europe and North America, however, led to almost flat sales in steel cord. The global economic crisis started to impact upon demand for the company’s products across most areas during the fourth quarter of 2008. Bekaert reports that customers from a range of industries and regions postponed orders and gave priority to using available stocks first.