
Combined sales: |
€ 1 040 million |
Capital expenditures (PP&E): |
€ 39 million |
Total assets: |
€ 758 million
|
Employees: |
6 000 |
Automotive markets shift into lower gear
The automotive industry is a large user of Bekaert’s steel wire products. Both in the original equipment and replacement markets, Bekaert serves a wide range of customers. The economic conditions in 2012 were unfavorable and pushed demand down for our products serving the OEM markets. Demand for new cars and commercial vehicles in the EU reached the lowest level recorded since 1995 and reflected a substantial decrease year-on-year. Most countries saw their markets contract, with vehicle sales in southern European countries sliding to their lowest levels in decades. This had an impact on, amongst others, spring wires and diesel particulate filter media.
The tire manufacturers also saw their European sales figures drop in 2012, not only because of the sluggish OEM market but also due to a global delay of tire replacement, especially in southern Europe. Some tire makers therefore downsized their manufacturing capacity in EMEA.
Bekaert was, however, able to secure its market share and continued the future-oriented development programs with its customers. Other steel wire products with an important aftermarket such as wiper blades, performed well throughout 2012.
Energy markets fuel performance …
Demand continued to be strong in markets of oil and gas extraction, power distribution, and other energy-related applications.
Bekaert’s armoring wires for overhead power cables and submarine power distribution, flat and shaped wires for offshore pipes and wedge filters, as well as anchorage rope wires for oil platforms, all performed well in 2012.
… but shadow on solar industry remains
The one big exception in energy-related markets was the solar industry. The entire supply chain of the European PV solar market saw its business further decline in 2012. The sawing wire market in Europe has become a shadow of its former self. Most wafer makers have stopped their production activities in the region or have ceased to exist.
Bekaert announced on 2 February 2012, a major restructuring program with actions directly related to the changed solar market. This program included measures to rightsize Bekaert’s global sawing wire operations. More specifically in Europe, and in Belgium in particular, the plan drastically decreased our activity scope and employment in production, technology and engineering.
Building the foundations for further growth
Bekaert’s business platform targeting European construction markets withstood the continued difficult market circumstances well and gained market share by offering product innovations and optimal service in the many infrastructure and construction segments it serves.
Demand was particularly strong for Bekaert’s Dramix® steel fibers for concrete reinforcement. The Dramix® fibers portfolio has been substantially extended in 2012 with the launch of the 3D-4D-5D fiber series. The addition of the new fiber types takes concrete reinforcement to the next performance class. Previously unknown levels of anchorage, tensile strength and ductility guarantee the best possible solution for an ever wider range of applications.