Vicenza, Italy-based AFV Beltrame Group (Beltrame), the European leader in the merchant bar market, has announced net revenues of €1.1 billion and an adjusted EBITDA of €74 million in 2019, respectively down 11.3 percent and 34.9 percent year on year.
In the same year, Beltrame's sales volumes amounted to 2.032 million mt. In particular, merchant bar sales were in line with the previous year, despite recording a drop in profitability from €81 million in 2018 to €57.2 million in 2019. "Sales volumes benefit from the greater proximity to customers thanks to the production alignment created in the Italian and French plants which have continued the process of continuously improving efficiency while maintaining excellent levels of industrial performance," Beltrame stated. Sales volumes of construction steel produced by the Swiss plant of Geralfingen also increased (+3.5%), but the same plant saw a reduction in margins "due to the reduction in commercial margins in the European construction markets and growing energy costs." In the meantime, the crisis in the automotive and in the specialty steel sector had an impact on the special bar quality (SBQ) business at Beltrame's Romanian plant in Calarasi, where sales revenues fell from €102.6 in 2018 to €78.3 million in 2019.
Describing last year, the group said the first three quarters had "positive dynamics" but were "followed by a fourth quarter characterized by extreme volatility and very strong price fluctuations."
Antonio Beltrame, president of AFV Beltrame Group, said that the group will face major challenges related to the impact of the coronavirus emergency. "There will not be a rapid return to normality. Indeed, the critical situation will certainly continue in 2021," he added. Nonetheless, "thanks to the actions undertaken in recent years and its financial strength" the group will be able to maintain its leadership "by continuing investments to always improve the service and the range and safety conditions of the plants." The group's investments in 2019 amounted to around €40 million and went in the direction of guaranteeing safety, quality and innovation.