Bekaert rubber reinforcement business reports sales, earnings growth

Brussels – Bekaert SA’s Rubber Reinforcement business has seen sales and earnings grow significantly in 2021, helped by ‘good pricing discipline’ and higher volumes.

The segment achieved €2 billion in consolidated third party sales, up 27.3% from last year, Bekaert reported 25 Feb.

Sales were driven by a 9% increase in volumes and an 18.3% rise in price-mix effects, which included the impact from passed-on raw material prices.

Earnings (EBITDA) was up 32% at €342 million, driven by higher sales.

Over the final quarter, Bekaert said the segment continued to have strong sales, except in China and Indonesia.

In the two Asian markets, it said, demand remained subdued as a result of softer domestic markets and lower exports due to container shortage and freight cost increases.

The setback was however “more than compensated” by continued strong volumes in other regions and by good pricing discipline, Bekaert added.

The segment’s joint venture in Brazil reported 50.4% sales growth at constant exchange rates.

Here, Bekaert said the devaluation of the Brazilian real had a “significant” adverse effect of 7.7%, resulting in a top-line growth of 42.7% to €183 million.

Including joint ventures, the business unit’s combined sales increased by 28.4% to €2.24 billion.

Bekaert operates three plants in Brazil through a 55.5%-owned joint venture with ArcelorMittal, called Belgo Mineira Bekaert Artefatos de Arame Ltda (BMB).