Bekaert Rubber Reinforcement Earnings Down on Stable Sales

Bekaert’s rubber reinforcement business reported stable first-half sales of €885 million, despite strong volume growth, as price pressure and regional demand shift weighed on margins. The company’s total consolidated sales increased to €905 million, with organic sales growth of 2% year-on-year, supported by a 6% increase in volumes. However, price and mix declined 4% due to demand shifting towards Asia, and currency movements reduced sales by 3%. The acquisition of Bridgestone’s steel cord plants added 1% to sales. Underlying EBIT declined to €66 million, and the EBIT margin decreased to 7.3%. Earnings (EBITDA) fell to €107 million, with the earnings margin decreasing to 11.8%. The company’s Brazilian rubber reinforcement joint venture reported first-half sales of €65 million, down 23% year-on-year. Looking ahead, Bekaert expects demand to remain solid in China, Southeast Asia, and India, while market conditions in Europe and North America are expected to remain subdued due to import pressure. The company is targeting growth customers and focusing on improved cost absorption and high-value tire reinforcement products.