Bekaert: Trading update for the nine months to September 2024

Trading update for the nine months to September 2024 Taking actions to address weaker end market conditions; share buyback restarted Bekaert has delivered a sales performance of € 3 016 million in the first nine months of 2024 (-10% against the same period in 2023). Sales were impacted by lower volumes (-4%) and the reversal of raw material cost inflation and energy surcharges in previous periods (-5%). Bekaert remains very focused on extracting further cost efficiencies, maintaining...

Zwevegem, 22/11/2024 (informazione.it - comunicati stampa - industria)

Trading update for the nine months to September 2024

Taking actions to address weaker end market conditions; share buyback restarted

Bekaert has delivered a sales performance of € 3 016 million in the first nine months of 2024 (-10% against the same period in 2023). Sales were impacted by lower volumes (-4%) and the reversal of raw material cost inflation and energy surcharges in previous periods (-5%).

Bekaert remains very focused on extracting further cost efficiencies, maintaining margins and generating cash while managing increasingly weak end markets in the third quarter. The period has further demonstrated the benefits from the strategic improvements in recent years and the business resilience they have brought to the group. Whilst there are clear headwinds, the group continues to execute its strategy.

Financial highlights

Operational and strategic highlights

Outlook
The company's financial performance in the first nine months of 2024, managing the challenges of weaker end markets and lower volumes, and robust financial position gives Bekaert confidence in its ability to further deliver on its strategic and financial priorities.
Whilst uncertainty remains for the financial year 2024, management is currently anticipating:

The group expects the challenging and uncertain environment to continue in most regions into Q1 2025 and will remain focused on successfully managing these pressures through production efficiencies, capacity management and corporate overhead reductions. The group will continue to deliver its strategy, strengthening business fundamentals and resilience, and improving opportunities for growth, margin expansion and cash flow generation.

Share buyback

The group continues to actively evaluate acquisition opportunities and to strategically reposition the Group in faster growing markets. With the investments already made in the growth platforms, the group has established a position to scale further as these markets develop.

To date in 2024 there have been fewer acquisitions than anticipated. Consequently, and supported by continued good cash flow generation and low levels of indebtedness, the Board has taken the decision to restart the share buyback immediately and will purchase for cancellation up to €200 million of Bekaert shares over the next 24 months.

Conference call

Yves Kerstens, CEO of Bekaert, and Seppo Parvi, CFO, will present the 2024 third quarter trading update at 10:00 a.m. CET on Friday 22 November. This presentation can be accessed live upon registration ( registration link ) and will be available on Bekaert's website after the event.

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