Bekaert H1 profit tumbles

Friday July 31, 2009 05:14:06 PM GMT
Reuters News
BEKAERT/ (UPDATE 1)

* H1 REBIT 86 mln euros vs 85 mln euro forecast

* Expects to benefit from lower raw materials in H2

(Adds detail)

BRUSSELS, July 31 (Reuters) - Belgian steel cord and wire manufacturer Bekaert reported a 47 percent drop in first-half operating profit on Friday due to continued weak demand in Europe and North America.

Recurring earnings before interest and tax (REBIT) fell to 86 million euros ($121 million), just above the average estimate of 85 million euros in a Reuters poll of seven analysts.

Bekaert, whose products are used to reinforce tyres and concrete, said visibility remained limited and gave no concrete forecast for the full year.

It did say, however, that it saw no further negative impact on its profit margin from raw material prices, which were stabilising.

"The substantially lower raw material prices year-on-year will have a corresponding impact on Bekaert's sales for the second half of 2009," the group said in a statement.

The group, which also produces window film for houses and cars for insulation and to hold glass shards, said net debt fell to 621.8 million euros from 627 million at the end of 2008 mainly as a result of a reduction in working capital.

Bekaert has a quarter of the world's market share in steel cord and is rapidly expanding in China, where it has about 7,000 staff, a third of its total workforce. (Reporting by Antonia van de Velde; Editing by Dale Hudson)

http://www.forexyard.com/en/reuters_inner....EKAERT-UPDATE-1

No one is immune - I guess this is where it pays to be the fit, healthy little guy with few overheads.

Operating PROFIT....not operating sales.... $121 million in profit in the first HALF of the year is still alot of Jack!

i feel sorry for the some reps.. they don't hit numbers then they'll be release. i know a few and they good guys too.
to cut cost down they have to close service center that have less will calls and ups film from nearest service centers. hire some yahoo who doesn't know anything about film for less money.
i think they've already begun this aren't some warehouse closing: dallas, atlanta, pompano,ohio i can't name them all.

You've got to separate the film MFG group from the steel cord group. I think this figure is for the combined divisions... maybe not though.



Anaheim service center used to be a busy place... not anymore.

They may go the way of CP one day.......let go of most all of their reps and try mostly phone sales.........look what it has done for LULU. Sales down drastically, profits in the crapper.......A tough road to go down....we will see

I don't know about that. I got a call last week from a dealer in San Jose looking for some Slate 30, he needed about 1/2 a roll to finish up an ongoing project.
He has been a Panorama dealer for years and was cancelled out of the blue, no explanation, just "we're sorry".
Now that could be because of Paul at BAWF, he and Denver are tight, but if they are that slow I can't imagine why they would be turning down business.
Granted he wasn't a big dealer, on average he bought 30-35k per year but in this economy why turn that down?

is paul buying all the window film and stocking it at his shop?

Wouldn't surprise me. Although I do hear that they are slower than normal and their prices have sure come down.

you've got to be a dumb arse if you didnt

"What goes around comes around"

Bekeart has done this to themselves.

No sympathy here

Everyone is consolidating... probably partly due to customers not being able to pay their bills but I also heard 3M was yanking dealers up north too at the urging of others... Paul is a savvy guy, it's dog eat dog in the BA.



Their prices were way down there even before it got slow.

dog eat dog?

the strength for even that is losing