Kortrijk, Belgium-based Bekaert, one of the world's largest steel cord and wire manufacturers, has announced that in the first quarter of the current year it achieved consolidated sales of €799 million, down 11 percent compared to the first quarter of the previous year. The company stated that the market conditions during the first quarter this year were reflected in the revenue, with low demand in mature markets and a highly competitive environment driving strong price pressure in emerging markets.
According to Bekaert's statement, sales in Europe, the Middle East and Africa (EMEA) in the first quarter declined by 10 percent year on year due to weak demand caused by the depressed automotive and other industrial markets across Europe. The company also pointed out that low demand in tire replacement markets, investment delays in energy markets, and increased competition from Asian imports drove sales down in North America. Bekaert saw a seven percent decrease in Asia Pacific sales, since the price levels of products serving the tire markets have been sliding in China due to weak demand and general overcapacity.
Regarding 2013, Bekaert stated that it is on track with the implementation of its cost reduction programs. The continued weak economic environment, the lack of consistent indicators of a global recovery, overcapacity in most markets and the corresponding overall price pressure will however weigh on profitability.
