Bekaert sees reduced net profit in H1

Tuesday, 31 July 2018 17:37:44 (GMT+3)   |   Istanbul

Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced that in the first half of the current year it achieved consolidated sales of €2.15 billion, rising by three percent compared to the first half of the previous year. In the first six months, Bekaert reported a net profit of €44.61 million, decreasing by 49 percent year on year.

In the given period, the company’s EBITDA went down by 31 percent to €204 million, while its EBITDA margin declined to 9.5 percent from 14.2 percent, both compared to the first half of 2017.

Bekaert stated that, while the underlying demand in the automotive and industrial steel wire markets remains strong, the adverse margin effect from a number of factors, including continued raw material price increases, the impact of changes to trade policies, its loss-making activities in Figline Valdarno, Italy, and the difficult business climate in Latin America, that have weighed on its profitability since the second half of 2017, seem to be more impactful than it had projected. Accordingly the company will accelerate its actions to progressively improve its profitability level.

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