Bekaert: Trading update for the nine months to September 2023
17 Novembre 2023 - 7:00AM
Bekaert: Trading update for the nine months to September 2023
Trading update for the nine months to September
2023
Resilient performance in challenging markets; profit
guidance for FY2023
Bekaert has delivered a resilient performance in the first nine
months of 2023, despite many of our end markets remaining
challenging. Sales of € 3 355 million (-13% against
the same period in 2022) were lower in this period, as anticipated,
from the reversal of raw material cost inflation and the
normalization of energy surcharges in previous periods, and lower
volumes, partially offset by a stronger mix.
Bekaert continues to benefit from the execution of its strategy,
with business selection driving price and mix improvements,
alongside excellent cash conversion and cost discipline. The group
is also making good progress in developing its new growth platforms
and with the completion of the disposal of the Steel Wire Solutions
businesses in Chile and Peru, Bekaert continues its repositioning
into markets with higher growth and margin.
Highlights
- Consolidated Sales of
€ 3 355 million in the first nine months of 2023
(-13%) driven by pricing reflecting lower raw material costs and
lower volumes
- The phasing out of previous wire rod price increases and energy
surcharges reduced revenues by approximately
€ 350 million and the lower overall volumes (-5%) reduced
revenues by approximately € 180 million in the first nine
months. Currency effects had an impact of around
€ -110 million.
- Successful focus on price and mix optimization towards higher
margin products increased revenues by around
€ 150 million
- Ongoing and proactive cost management to support margins,
including the closure of a plant in China in Q3
- Continued strong cash flow generation, due to further working
capital management, especially on inventories
- Rubber Reinforcement - whilst demand and plant occupation have
been strong in China, the anticipated weakness in Europe and North
America have resulted in lower revenues
- Specialty Businesses - mixed performance across sub-segments,
with excellent progress from Dramix® products in target markets and
new contract wins improving mix, the successful commercialization
of hydrogen activities (Currento®), offset by weaker demand in
combustion technologies and filtration
- BBRG - very strong growth in both Ropes and A-Cords, sustained
high order book and significantly increased demand for
Armofor®
- Steel Wire Solutions - continued strong energy and utility
markets in North America, with lower volumes in other regions
- Growth platforms continue to progress, with a developing
partnership with Toshiba in hydrogen electrolysis and partnership
with ABB to deliver a predictive maintenance services for mine
hoist systems
- Commissioned 12 MWp solar power farm at plant in Burgos,
Spain
- The disposal of Steel Wire Solutions businesses in Chile and
Peru now completed
OutlookDespite the challenges in many of our end markets,
Bekaert continues to benefit from actively managing pricing and
business mix, and the transformational initiatives of recent years,
which continue to improve operating margins, cash flow and overall
business resilience. Whilst uncertainty remains for the financial
year 2023, management is currently anticipating:
- Consolidated sales of approximately € 4.3 billion
reflecting the ongoing reversal of raw material cost inflation and
the normalization of energy surcharges in 2022
- EBITu margin in the range of 8.5-8.7% (up from 8.2% last
year)
- Strong cash performance for the year, driven by ongoing working
capital management
The Group expects the challenging demand environment to continue
in most regions into Q1 2024 and Bekaert will remain focused on
successfully managing these pressures, as it has done to date in
2023. The group will continue to strengthen its business
fundamentals and resilience, and improve opportunities for growth,
margin expansion and cash flow generation, and therefore we remain
confident in our ability to deliver our strategy.
- p231117E - Trading update Q3 2023
Grafico Azioni NV Bekaert (EU:BEKB)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni NV Bekaert (EU:BEKB)
Storico
Da Set 2023 a Set 2024