| Combined sales: |
€ 1 690 million |
| Consolidated sales(*): |
€ 812 million |
| Capital expenditures (PP&E)(*): |
€ 29 million |
| Total assets(*): |
€ 480 million
|
| Employees: |
7 700 |
| (*) Consolidated entities |
Continued consolidation in Latin America
In Latin America, a well balanced mix of markets and products resulted in solid performance for the region in 2012. Peruvian and Venezuelan markets in particular showed robust growth, while the business environment in Colombia and Brazil continued to be highly competitive.
Early 2012 Bekaert and its Chilean partners announced the successful closing of their shareholding transaction by which Bekaert became the principal shareholder (52%) in the partnership with operations in Chile, Peru and Canada. As a consequence, Bekaert consolidates the results of all respective entities since the start of 2012 in the Group’s financial statements. In support of the growing importance of the region in the Bekaert Group’s strategy and results, Bekaert has established a regional management office in Bogotá, Colombia in 2012.
Subsidiaries under the Bekaert Ideal Holding
Bekaert holds 80% of the shares in Ideal Alambrec (Ecuador), Vicson (Venezuela) and Proalco (Colombia).
Ecuador
The Ecuadorian economy is characterized by steady GDP growth, mainly driven by the country’s strong oil extraction industry. Public spending continued to be high in 2012 with social and logistic investments including infrastructure and housing projects.
Bekaert’s subsidiary in Ecuador recorded stable sales volumes in 2012. After a difficult first half, sales picked up, especially in construction markets.
The Ideal Alambrec plant invested in cut & bend equipment to further broaden its product offering in the construction market.
Venezuela
Heavily driven by the oil sector, which accounts for 95 percent of exports, and stimulated through public investments preceding the presidential elections in October of 2012, Venezuela's economic growth ended above the regional average. Persisting economic imbalances and political risks associated with the country are elements of uncertainty in assessing future economic developments.
Bekaert’s subsidiary Vicson recorded exceptionally strong growth in most markets served. However, a lack of wire rod supplies led to activity losses and temporary production shutdowns in the last quarter of 2012. Bekaert ensured continuity of operations as much as possible, but carefully watches the evolutions in this business environment which is characterized by major currency-related uncertainties and a regulated but instable supply of raw materials.
Bekaert continues to pursue solutions to optimally cover the business continuity and currency risks, in full support of its customers and of its dedicated team of 682 employees in the country.
Colombia
The Colombian economy’s growth has slowed somewhat due to a demand decline in export markets and a delay in mining and energy investments.
Bekaert’ subsidiary, Proalco, saw its sales and results under pressure from continued weak demand in agriculture markets and the highly competitive and very fragmented business environment.