Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced that in the first quarter of the current year it achieved consolidated sales of €782 million, falling 2.1 percent compared to the first quarter of the previous year. Bekaert reported a strong start to the year with a solid annual volume growth of 3.3 percent driven by higher demand in Europe and Asia.
According to Bekaert's statement, sales in Europe, the Middle East and Africa (EMEA) in the first quarter increased by six percent year on year, rising to the highest level in two years. The upward trend in demand from automotive markets in Europe as of the second half of 2013 continued at the start of 2014. This led to robust volume growth for tire cord and other steel wire products serving the automotive industry in Europe.
As regards Latin America, as anticipated, demand in the region slowed down in line with the GDP trend. Bekaert's activities maintained solid market shares but saw demand contract as a result of a slowdown in mining and infrastructure activities.
Bekaert expects sustained solid demand in Europe and will continue to defend and grow its strong positions in China. The company does not expect major changes in the North American markets and anticipates a continued slowdown in Latin America, in line with the GDP trend for the region. Currency movements are expected to cause an unfavorable translation impact also in the second quarter of 2014.