Bekaert shares at almost 7-yr highs after FY beat, encouraging outlook

NV Bekaert SA

01/03/2024 09:08

** Shares in Bekaert  BEKB.BR  jump 9% after the Belgian
steel wire maker beat Fy margin expectations and flagged a good
start to 2024 across the majority of its business units,
expecting sales and margin improvement
    ** It reports underlying EBIT (EBITu) of 388 million euros 
($419 million), down 5.3%, but with an improved margin of 9.0%
vs 8.2% a year earlier 
    ** Bekaert in November had said it targeted FY EBITu margin
Of 8.5%-8.7%
    ** "We are positively surprised that the FY23 results
exceeded expectations," says Degroof Petercam, flagging that the
margin was achieved in challenging conditions 
    ** ING also says results are better than expected on
profitability and FCF (267 million euros in 2023)
    ** Bekaert says it expects modest 2024 sales growth and at
least stable y/y margins
    ** Degroof Petercam deems outlook comments as "more
encouraging than anticipated"
    ** End-2023 net debt was 254 million, down from the 380
million at the end of 2022, a stronger-than-anticipated
reduction according to Degroof Petercam 
    ** The shares head for their best day since July 29, 2022
        ** They trade at their highest price in almost 7 years 
    
 
($1 = 0.9251 euros)

 (Reporting by Olivier Sorgho)
 ((Olivier.Sorgho@thomsonreuters.com))