Bekaert reports strong 2005 sales, profits

Kortrijk, Belgium - Steelcord producer NV Bekaert SA has reported sales up by 10 percent and net profits up by 13 percent for the 12 months ended 31 Dec. 2005.

In advanced wire products, which represents around 90 percent of corporate sales and includes Bekaert's steel cord business, consolidated sales were up nine percent, to €1640 million, while combined sales, which includes all Bekaert's minority holdings, joint ventures and associates, were up 14 percent, at €2750 million.

The company said, "After an extraordinary year in 2004, which saw unprecedented price rises for wire rod (the raw material for advanced wire products), in 2005 Bekaert continued to experience the significant impact of the volatility of raw materials markets worldwide. In contrast to 2004, when customers built up their inventories, because of difficulties in obtaining supplies, the company experienced just the opposite in 2005, with customers running down their stocks, which translated into a slow-down in customer demand in some markets. Both raw materials prices and selling prices were higher on average than in 2004. The application of the inventory valuation rules had a limited impact on the operating result in 2005 unlike 2004 when this change had a positive effect of € 35 million, due to significant raw materials price increases."

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Press release from Bekaert

Bekaert posts in-line yr-on-yr rise in FY net on higher sales Forbes (via AFX) (Belgium)