Bekaert forecasts challenging market conditions

Belgian wire specialist Bekaert forecasts a particularly volatile market for the reminder of the year due to macroeconomic and geopolitical uncertainty. The company vows to adapt to market condition changes and will insist on its “pricing discipline” to offset inflation, it says in its first half-year earnings report monitored by Kallanish.

Despite increasing volatility, cost inflation, supply chain disruption and Covid-19 lockdowns in China, Bekaert grew H1 revenue 24% year-on-year to €2.8 billion ($2.8 billion) thanks to high prices and strong demand in the first months of the year.

The company is now focusing on addressing the “ongoing deglobalisation trends, securing supply continuity … adjusting sourcing channels affected by logistic and other supply disruptions,” it observes.

Bekaert is investing in increasing its market share in low-carbon concrete reinforcement products and successfully participating in offshore energy tenders. It is strengthening its presence in the green hydrogen sector, and developing products and services for the energy transition.

H1 Ebitda stood at €381 million, a 5% y-o-y increase.

Natalia Capra France