Bekaert: Full Year Results 2016: Bekaert delivers strong profit growth as it moves into higher gear
01 Mars 2017 - 07:04AM
Full Year Results
2016
Bekaert delivers
strong profit growth as it moves into higher gear
8.2% Underlying
EBIT, up 32% to € 305 million - Underlying EBITDA +18%,
exceeding half a billion euro
Highlights
Bekaert achieved strong margin and
volume growth throughout 2016. An overall stronger business
portfolio and the growing impact from the various global
transformation programs boosted the company's profit performance
and cash generation. The underlying EBIT increased by 32% to € 305
million, representing a margin on sales of 8.2%. Our underlying
EBITDA totaled
€ 513 million, up 18% from last year and reflecting a margin of
13.8%. We achieved an improvement in ROCE (from 9.1 to 11.8%
underlying) which resulted in ROIC (8.3) exceeding the WACC (8.0),
allowing us to return to a value creative position.
The Group's 4% organic volume growth
stemmed from firm demand in global automotive markets and steadily
increasing sales volumes in industrial steel wire and construction
markets. This growth was largely offset in Bekaert's top line by
the lower wire rod prices and price-mix effects (-3%).The net
effect of mergers, acquisitions and divestments was +2.5% while
adverse currency movements accounted for -2.5%.
Bekaert achieved excellent results in
all regional segments: EMEA improved on the already high profit
margins of last year; our activities in North America and Asia
Pacific almost doubled their underlying EBIT performance compared
with 2015; and Latin America delivered excellent results with an
EBIT margin increase of 50%. The integration of the Bridon
activities in Bekaert's consolidated statements via the newly
established Bridon-Bekaert Ropes Group, tempered Bekaert's profit
performance in the second half, as anticipated.
- Consolidated sales of € 3.7 billion
(+1%) and combined sales of € 4.4 billion (-1%)
- Currency impact: € -65 million (-2%)
on consolidated sales; € -96 million (-2%) on combined sales
- Gross profit of € 690 million (18.6%
margin) compared with € 598 million (16.3% margin) in 2015
- Underlying EBIT of € 305 million
(8.2% margin) compared with € 231 million (6.3% margin)
- EBIT of € 260 million (7.0% margin)
compared with € 219 million (6.0% margin)
- Underlying EBITDA of € 513 million
(13.8% margin) compared with € 436 million (11.9% margin)
- Underlying ROCE of 11.8% compared
with 9.1%
- Net debt of € 1 068 million,
including € 279 million acquisition impact of the Bridon merger
deal. Net debt on underlying EBITDA was 2.1, slightly higher than
last year (1.9). Excluding the Bridon impact, net debt on
underlying EBITDA dropped to 1.5, reflecting the strong cash
generation of Bekaert in 2016
- EPS: € 1.87 compared with €
1.82
The Board of Directors confirms its
confidence in the strategy and future perspectives of the company
and will propose to the Annual General Meeting of Shareholders a
gross dividend of € 1.10 per share, compared with € 0.90 last
year.
Press release in PDF
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The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Bekaert via Globenewswire
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