Approach
Bekaert is committed to provide transparent financial information to its shareholders. It is Bekaert’s intention to engage constantly in an open dialogue with its shareholders. Bekaert has always chosen to respond promptly to new international standards. The consolidated financial statements are prepared in accordance with the International Financial Reporting Standards (IFRS), which have been adopted by the European Union. Both private and institutional investors can count on our sustained commitment to transparent reporting, be it at shareholders’ or analyst meetings.
Share identification
The Bekaert share is listed on NYSE Euronext Brussels as ISIN BE0974258874 (BEKB) and was first listed in December 1972. The VVPR strip was listed as ISIN BE0005640140 (BEKS) until 3 January 2013, at which date the VVPR strips of all listed companies were removed from the listings. The ICB sector code is 2727 Diversified Industrials.
The Bekaert share in 2012
The Bekaert share took off well in early January 2012 and increased to an all year high of € 33.50 as a result of a general confidence in stock markets. This positive trend was reversed by the announcement of the restructuring plan in early February and of Bekaert’s 2011 full year results. These 2011 annual results outlined further explanations on the extent of the decline in the solar activities and its impact on Bekaert’s financial performance. They also highlighted the need and decision to implement a global, company-wide cost reduction program, with the intent to restore Bekaert’s long term profitability.
In early March, the announcement concerning the integration of the activities within the Chilean partnership into Bekaert’s consolidated perimeter resulted in a positive momentum for the share price. But shortly after, the financial markets globally turned negative amid serious macro-economic concerns over the state of the European economy. The Bekaert share price decreased more than the BEL20, the Belgian reference index.
A positive evolution of the share started halfway the second quarter, following the finalization of the social plan negotiations in Belgium and a better than anticipated first quarter trading update. The share price declined upon payment of the 2011 gross dividend. Macro-economic concerns on Europe cast a shadow on the financial markets and pushed the BEL20 index down to its lowest point since December 2011 on 1 June.
The Bekaert share price was further impacted due to its exit from the STOXX 600 and MSCI indexes, as the company’s market capitalization had gone below the minimum required level. The exit resulted in an immediate sale of shares from indexed funds. The share price decreased to a year’s low of € 17.21 on 14 June.
Bekaert announced its results of the first half of 2012 on 27 July. These results outlined the capability to reach stable sales volumes in difficult markets, but at the same time highlighted an uncertain outlook due to a global economic slowdown and the further decline of demand and price levels in the sawing wire market. Upon positive guidance by the European Central Bank, stock markets recovered. The Bekaert share price increased and reached a peak of € 24.43 on 14 September.
During the fourth quarter, the Bekaert share price saw a pause in the upward trend. While financial markets progressed as a result of announcements of a Greek bailout, the share price dropped significantly after the company’s third quarter trading update. Lifted by the general financial markets’ year-end rally, the Bekaert share price finished at € 21.88 on 31 December.
Bekaert confirmed its membership in the BEL20 index and meets all index requirements. Bekaert is positioned as number 16 out of 20 companies, with a market capitalization of € 1.31 billion or a free float market capitalization of € 853 million (within the free float band of 65%) and a velocity of 144%.