N.V. Bekaert S.A. Business Report FY ended Dec. 2014

Financial Overview

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 Rate of change (%) Factors
Net Sales 3,215.7 3,185.6 0.9 1)
EBITDA 341.9 297.0 15.1 -


Factor
1) Net Sales
-FY ended Dec. 2014, the Company's consolidated sales increased by 0.9% year-on-year. The organic consolidated sales growth (+2.8%) was cancelled out by the effect of adverse currency movements, the Chilean peso in particular.

Acquisitions

-The Company has reached an agreement with Pirelli & C. SpA for the acquisition of Pirelli's steel cord activities. The deal has an enterprise value of EUR 255 million. As part of this transaction, Bekaert and Pirelli will enter into a long-term supply agreement of tire cord to Pirelli. The acquisition agreement includes the purchase by Bekaert of Pirelli's steel cord manufacturing sites in Figline Valdarno (Italy), Slatina (Romania), Izmit (Turkey), Yanzhou (Shandong Province, China) and Sumare (Brazil). The deal includes all of the personnel and assets of the respective entities. (From a press release on February 28, 2014)

Overview of acquisition of Pirelli's steel cord activities

  • 5 factories: Italy, Romania, Turkey, China, Brazil
  • Production capacity: 150 kilo ton tire cord
  • Employees: 2,127 personnel
  • Sales amount: EUR 300 million *Taking effect after January 2015

 

Fire

-In November 2014, a fire caused structural damage to part of the Company's manufacturing plant in Rome, Georgia U.S., specializing in bead wire for the tire industry and in rubber reinforcement products for hydraulic rubber hose markets. The damaged parts of the site are being rebuilt and re-equipped to restore bead wire production activities over the course of 2015.

R&D Expenditure

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Total 59.3 62.4 69.4



R&D Structure

-As of Dec. 31, 2014, the Company has 400 employees working in R&D on various projects worldwide.

-The Company's global technology platform consists of 2 main Technology Centers in Deerlijk (Belgium) and Jiangyin (Jiansu province, China).

Product Development

Ternary Cu-Zn-Co coated Tire Cord
-The Company successfully launched ternary Cu-Zn-Co coated tire cord that makes it possible for tire makers to create cobalt-free rubber compounds. As a result, the cobalt salt mixing step can be eliminated in the rubber compounding process and the amount of cobalt in the total supply chain of tire making can be reduced by 80%.

Reduction of parts of Window wiper

-Thanks to the technology of coated high carbon flat spring wire, a next generation window wiper was developed based on 6 parts instead of 23 parts with 50% weight reduction and better aerodynamic behavior.

Capital Expenditure

(in million EUR)
FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Overall 154.5 96.8 127.3

 

Data

Number of Employees

Dec. 2014 Dec. 2013 Dec. 2012
Total 24,127 21,790 22,549

 

Sales by Product

 (in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Rubber reinforcement products 1,205.6 1,206.5 1,337.2
Other steel wire products 1,851.5 1,788.2 1,927.3
Stainless products 143.5 180.6 180.0
Coatings & other 15.2 10.3 17.1
Total 3,215.7 3,185.6 3,460.6

 

Sales by Geographic Area

 (in million EUR)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Europe, Middle-East and Africa 1,063.8 1,040.2 1,044.1
North America 554.7 547.7 658.9
Latin America 631.3 644.6 812.3
Asia Pacific 965.9 953.1 945.4
Total 3,215.7 3,185.6 3,460.6

 

Sales by Application

 (%)
  FY ended Dec. 31, 2014 FY ended Dec. 31, 2013 FY ended Dec. 31, 2012
Automotive 38 37 34
Construction 22 23 26
Energy & Utilities 14 13 13
Equipment 9 9 8
Consumer goods 7 7 8
Agriculture 7 7 7
Basic materials 3 4 5
Total 100 100 100

>>>Financial Data