Bekaert sales decline as rubber reinforcement volumes grow in Asia, North America

Brussels — Bekaert expects a 7% year-on-year decline in first quarter sales, mainly due to the impact of currency and price/mix, partially offset by higher volumes.

The Belgian group expects sales to come in at €917 million, reflecting a €32 million positive impact of volumes, offset by a €30 million negative impact of price-mix and a €45 million negative impact of currency rates.

Sales were also hit by a €31 million impact of “disposals in Latin America,” the Belgian steel wire and tire reinforcement supplier said in a 13 May trading update.

Within the rubber reinforcement segment, Bekaert reported “strong volume growth in Asia” and increased volumes in North America, which compensated for weaker demand in Europe.

The group said it continued to focus on its “high-quality tire cord position amid a competitive climate.”

During the quarter, Bekaert also completed the acquisition of Bridgestone’s steel cord plants in Thailand and China, with the deal closing at the end of April.

Bekaert also announced reporting changes tied to its rubber reinforcement activities.

From 2026, the ‘hose’ and ‘conveyor belts’ subsegment, previously reported under ‘Speciality Businesses’, will be integrated into the Rubber Reinforcement segment.

According to the supplier, the move reflects “operational and technology synergies in cord manufacturing, as well as a closer alignment of end-markets.”

Elsewhere, Bekaert said it continued to implement cost and operational efficiency measures to mitigate margin pressure linked to higher energy and raw material costs stemming from the Middle East conflict.

“Continued geopolitical and trade uncertainty, including ongoing inflationary and supply chain pressures linked to the conflict in the Middle East, may adversely impact global demand and input costs,” the group said.

This, it noted, could put increasing pressure on the margin.

To date, Bekaert said it had been able to mitigate the direct impacts of the conflict in the Middle East.

“At this stage, the group continues to expect sales and margins to be at similar levels to last year on a like-for-like basis,” it said.