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 €1.8 billion, falling four percent compared to the first half of the previous year. Bekaert reported an annual volume growth of six percent stemming from firm demand in the automotive and solar markets and steadily increasing sales volumes in the industrial steel wire and construction markets. This growth was, however, more than offset by adverse currency effects, lower wire rod prices, and price erosion and mix effects.
In the first six months, Bekaert’s EBITDA increased by 11.5 percent year on year to €242 million, while its EBITDA margin rose to 13.3 percent compared to 11.4 percent in the same period of 2015.
Bekaert stated that it projects continued strong demand from the automotive, solar and construction markets in the second half of the year. However, it sees an increased impact from the low activity in global oil and gas markets, while it is also concerned about the continued weak economic environment in Latin America. Meanwhile, the company also projects some slowdown in Europe from growing uncertainty and a lack of confidence following Britain's choice to leave the European Union.