Bekaert Annual results 2014
Highlights:
Bekaert achieved stable 2014 revenues compared with 2013. The company realized an organic sales growth of 2.8%, most of which was cancelled out by adverse currency movements. Bekaert's activities in EMEA achieved excellent results while continued price erosion in Chinese tire markets led to profit deterioration in Asia Pacific. The North American business remained stable. Subdued demand and competition from import flows led to depressed margins in Latin America. In spite of a weak final quarter, Bekaert achieved improved EBIT, EBITDA and EPS results for the year 2014.
- Consolidated sales of € 3.2 billion (+0.9%) and combined sales of € 4.0 billion (-1.7%)
- Currency impact: € -72 million (-2.3%) on consolidated sales and € -144 million (-3.5%) on combined sales
- Gross profit of € 486 million (15.1% margin) compared with € 482 million (15.1%) in 2013
- REBIT of € 164 million (5.1% margin) compared with € 166 million (5.2%)
- Non-recurring items of € +7 million compared with € -29 million
- EBIT of € 171 million (5.3%) compared with € 137 million (4.3%)
- EBITDA of € 342 million (10.6%) compared with € 297 million (9.3%)
- EPS: € 1.51 compared with € 0.42
Bekaert continued to invest in future growth:
- Since January 2014 the company acquired a steel wire business in Costa Rica, the steel cord activities of Pirelli, and ropes businesses in the US and Brazil. The company also signed an agreement for the acquisition of a ropes entity in Australia early 2015
- R&D expenses totaled € 59 million (€ 62 million in 2013)
- Capital expenditure (plant, property and equipment) reached € 133 million, up 40% from last year
- Net debt increased from € 574 million to € 853 million, primarily as a result of cash costs associated with the Pirelli steel cord acquisition
The Board of Directors will propose to the Annual Meeting of Shareholders a gross dividend of € 0.85 per share, unchanged from the previous year.