European steel wire rod and specialty steel products maker Bekaert has lifted its sales guidance to around €4.6bn ($5.4bn).
The company noted in its earnings report on Jul 30 that the merger of its Colombian businesses Almasa with Proalco will add €11mn in revenue in the second half of the year.
Bekaert noted that sales across all its segments rose in H1 2021 owing to strong demand from the automotive, construction, and mining sectors. The firm’s consolidated sales from its rubber reinforcement, steel wire solutions, specialty business, and subsidiary BBRG increased by 39pc to €2.78bn in January-July from €2.06bn in the same period last year.
In Q2 2021, the company’s consolidated sales increased by 58pc to €1.4bn against Q2 2020 and by 8pc from €1.34bn in Q1 2021.
Of the total revenue, Bekaert’s steel wire solutions business grew by 35.3pc in H1 2021 from the same year-ago period following increasing steel prices and a 17pc growth in volumes driven by higher sales to Latin America, Europe, and China. The company expects demand in this segment to remain strong through the second half of the year as well.
In H1 2021, Bekaert’s EBITDA rose to €372mn from €188mn in the same period last year.