Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on BEKAERT NV. We currently have 5 research reports from 1 professional analysts.
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A mixed bag in Q3, as the solar market weighed
18 Nov 16
The 9M revenues reached €2,759m (-1% yoy) as organic volume growth of 4.5% was more than offset by the lower wire rod prices (-3.2%), while the effect of mergers, acquisitions and disvestments was +1.6%. The company expects continuing strong demand from the automotive and construction markets in Q4 16 and anticipates a moderate pick-up in demand from solar markets after the Q3 decline. A reduction in feed-in tariffs is expected in China in April 2017 and demand is projected to strengthen ahead of this change. The oil and gas markets will remain weak. Bekaert believes its transformational excellence programmes will continue to underpin its move towards a sustainable higher level performance and has revised its previous target range (between 7% and 8% REBIT) for full-year 2016 and now expects to achieve between a 7.5% and 8% REBIT margin on sales.
Strong H1 margins lead to a rise in FY16 guidance
29 Jul 16
Bekaert reported robust H1 16 results. Main facts: H1 16 revenue reached €1.82bn (-4% yoy), strong currency impact of €-63m (3% of revenue). Recurring EBIT margin of 8.6% (€157m) to be compared with 5.9% in H1 15. Net income was impacted by “other financial income and expenses” of €-53.2m (versus €-13.9m) and reflected the increase in the fair value of the conversion option of the previous convertible bond (€-42.7m) in line with the evolution of the share price. The EPS was, consequently, €0.58 versus €0.93 in H1 15. Net debt was €1,151m (versus €1,023m in H1 15)including the €298m acquisition impact of the Bridon merger deal. Net debt/EBITDA was 2.4x, unchanged from the same period last year and up from 1.9x at year-end 2015. Excluding the Bridon impact, net debt/EBITDA was 1.8x, slightly down from year-end 2015. The company expects it will end the year ahead of the target goal of 7% recurring EBIT, achieving between 7% and 8% REBIT for full-year 2016.
Negative FX and prices offset Q1 16 volume growth
11 May 16
Bekaert reported Q1 16 revenue showing mixed figures. The company also looks more cautious for the second half of the year. Bekaert achieved consolidated sales of €884m in Q1 16, a 2% yoy decrease. The solid organic volume growth (+5.5%) was fully offset by significantly lower wire rod prices (-6%) which were passed on to customers. At the same time, mix improvements (+3%) were more than offset by continued price erosion in tyre markets (-2%). The net effect of acquisitions (+2%) and divestments (-2%) was neutral, but unfavourable currency movements – driven by LatAm and Brazil – drove consolidated sales down by 2%.
Strong prospects ahead despite some tailwinds
26 Feb 16
Bekaert reported strong FY15 results and 2016 guidance, both above market expectations and our forecasts. Main figures: * 2015 revenue at €3.67bn, in line with expectations, corresponding to an organic growth of 2% (+14% reported). * The 2015 adj. EBIT reached €223m vs €164m last year, corresponding to an operating margin of 6.1% above expectations. * 2015 EPS €1.83 versus market estimate of €1.65. * Dividend raised to €0.90/share as expected (vs €0.85 last year). * Net debt €832m at year-end vs est. €991m despite acquisitions (€235m net of divestiture). Bekaert forecasts a significant step in 2016 towards the goal of a 7% adj. EBIT margin, and expects to outperform the market environment as it anticipates strong demand in the automotive sector (>40% of sales) to continue, while, seeing pressure across most other industries due to global overcapacities.
Increased volumes offset by pricing pressure
13 Nov 15
Bekaert reported Q3 15 revenues of €898m, 10% higher than last year, with acquisition and FX accounting for more than 15%. The organic decline was therefore 5% due to the positive price mix and volume effects (+1%) and significantly lower wire rod prices (-6%). By region; EMEA: the solid Q3 15 was driven by acquisitions, flat organic growth was driven by higher volumes, normal seasonality and an adverse impact of passed-on lower raw material prices. The North American activities reported 4% yoy sales growth in Q3, and FX effects accounted for +15% while the volume loss from the fire damage in Rome (Georgia, US) was the main driver of the organic decline (-11%). But the production plant was reopened during October and demand in the US is expected to stabilise in Q4. In Asia Pacific, Bekaert achieved 12% sales growth in Q3, acquisitions boosted sales by 7% and currency effects accounted for +13%. The price erosion which made up most of the organic sales decline (-8%) was mainly the result of passed-on lower wire rod prices. In LatAm, revenue was up 10% in Q3 as acquisitions, organic volume growth and an improved price-mix drove up sales significantly. Currency effects were almost neutralised as various devaluations (versus the US$) in the region offset the impact of a weaker euro. The segment’s top-line was, moreover, adversely impacted by declining raw material prices. Net debt was €906m at the end of September, €117m down from June 2015 thanks to the working capital decrease.
20 Feb 17
Hayward Tyler Group* (HAYT): Trading update and financial position (CORP) | Petra Diamonds (PDL): Interim results (BUY) | Gemfields* (GEM): Interim results (CORP) | Premaitha Health* (NIPT): Middle East momentum (CORP) | Sound Energy (SOU): Acquisition update and TE-8 well spud (HOLD) | Proactis* (PHD): Interim trading on track (CORP) | 7digital* (7DIG): Automotive contract win (CORP)
21 Feb 17
Lighthouse Group* (LGT): Middle Britain growth (CORP) | Utilitywise* (UTW): Double-digit sales growth (CORP) | Trakm8* (TRAK): Earnings expectations cut again (CORP) | dotDigital* (DOTC): Myriad growth opportunities (CORP) | Artilium* (ARTA): Five-year Telenet deal secured and prepaid (CORP) | Netcall* (NET): Cloud investment pays off (CORP)
N+1 Singer - Small-cap quantitative research - New quality style screen + 11 quality focus stocks
09 Feb 17
We introduce our fourth and final style screen representing “quality”. This screens for stocks with the best combination of high returns on capital/equity, EBIT margins and operating cash-flow conversion rates. These criteria should help us monitor how strong underlying returns translate into share price performance over time and under varying market conditions. The screen selects the “best” 25 stocks from our universe of just over 500 stocks and, as usual, we focus on a shorter list of stocks we cover or otherwise know and believe to be particularly interesting. We provide brief investment summaries on these focus stocks on pages 4 – 9. We will monitor performance and refresh the screen in approximately 3-4 months time.
The Slide Rule
12 Jan 17
What is The Slide Rule? The Slide Rule has been designed to dramatically simplify the identification of the best companies in the UK small/mid-cap sector by making a quantitative assessment of the relative potential of each company. At its core, The Slide Rule aims to identify those companies that create genuine shareholder value through strong returns on capital and solid growth, but also present a value opportunity with the potential tailwind of earnings momentum. Companies are assessed within a Quality, Value, Growth and Momentum (QVGM) framework.
Time to go over weight
24 Feb 17
We believe equity investors are taking an unnecessarily cautious stance on the construction sector. Forward looking indicators (e.g. consumer confidence, construction PMIs and housing starts) point to a stable market and recent sales LFL are particularly encouraging (e.g. Marshalls). Near term margins may suffer temporary distortions as inflationary pressures build. However, history has shown that modest input cost inflation is actually a positive for earnings growth in the sector. Therefore, as we move into 2018, margin trends are likely to surprise on the upside.
N+1 Singer - Morning Song 22-02-2017
22 Feb 17
CORETX (COR LN) Contract wins and new Lifestyle facility | Gooch & Housego (GHH LN) Solid Q1 trading plus earnings enhancing acquisition of StingRay Optics | NCC Group (NCC LN) Further issues in Assurance | PCI-PAL (PCIP LN) Strong H1 underpins positive outlook | UBM (UBM LN) Results | Verona Pharma (VRP LN) Phase IIa RPL554 add-on trial to tiotropium commenced