Looking at the markets: Bekaert, Salzgitter, Voestalpine

As the market is becoming more and more global and competitive, it is essential for industrial companies to be well informed about trends concerning customer markets, manufacturing technologies. And - why not? - to take a look at how other companies perform.

With this brand new news column "Looking at the markets" Expometals intends to inform companies of the wire manufacturing and processing industries including the cable industry as well as tube manufacturing and processing companies by current reports on the business activities of stock companies which are busy in different industry sectors.

An additional source of valuable information might be the final part called "Latest trends" which considers newly published market surveys and other studies concerning directly or indirectly the mentioned industries.
The information has been compiled by Dipl.-Ing. Konrad Dengler, a technical journalist specialised in industrial activities.
This issue is focusing on the following companies:
Bekaert, Steel wire and steel wire products
Salzgitter, Steel & steel products including tubes
Voestalpine, Steel and steel products

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Bekaert
NV Bekaert SA, Kortrijk/Belgium (01/03/2017): The manufacturer of steel wire and steel wire products with almost 30,000 employees worldwide reports for the full year 2016 ended on December 31, 2016, a consolidated turnover of €3,715 million against €3,671 million a year ago which means an increase of 1.2%. Compared with the predecessor year a gross profit growth of €92 million to €690 million (+15.4%) could be achieved, resulting in a gross profit margin of 18.6% (in 2015: 16.3%). Operating result (EBIT) was €259.7 million against €219.4 million a year ago, the result before taxes was €149 million against €123.4 million a year ago. The underlying EBIT increased by 31.7% to €305 million against €231.5 million a year ago representing a margin on sales of 8.2%. EBITDA reached €481 million, representing an EBITDA margin on sales of 13.0% (12.0%). The underlying EBITDA totaled €513 million, up 18% from last year and reflecting a margin of 13.8%.
The group's 4% organic volume growth stemmed from firm demand in global automotive markets and increasing sales volumes in industrial steel wire and construction markets.
Bekaert achieved good results in all regional segments: EMEA (Europe, the Middle East and Africa) improved on the already high profit margins of last year; the activities in North America and Asia Pacific almost doubled their underlying EBIT performance compared with 2015. Latin America delivered an EBIT margin increase of 50%. The integration of the Bridon activities in Bekaert's consolidated statements via the newly established Bridon-Bekaert Ropes Group (BBRG), tempered Bekaert's profit performance in the second half, as anticipated. 
Projects
The duration of the share buy-back program announced in December 2016, has been extended until 30 June 2017.
BBRG is taking actions to grow volumes and leveraging scale, while making the necessary adjustments such as closure of the ScanRope plant in Norway, restructuring of the Belton plant in Texas, US, final closure of Shah Alam plant in Malaysia, and closure of Huizhou plant in China but investing in other existing locations in China. Bekaert is continuing to invest in order to meet growing demand, e.g. tire cord in US, India, Indonesia, and China.
Outlook
Despite growing uncertainty in Europe and global markets by recent political events, Bekaert expects automotive markets will continue to perform strongly over the first half of 2017. Bekaert also assumes a strong start to the year in the solar industry while oil and gas markets activities are expected to remain weak due to the continuing low level of planned investments in mining projects.
Sources
Bekaert Annual reports
17 03 01 FYR analysts meeting 
http://www.bekaert.com/en/about-us/news-room/news/bekaert-full-year-results-2016-bekaert-delivers-strong-profit-growth-as-it-moves-into-higher-gear
http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=765841
http://de.4-traders.com/indexbasegauche.php?lien=recherche&mots=Bekaert&x=6&y=11&RewriteLast=&noredirect=1&type_recherche=0
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Salzgitter

Salzgitter AG, Salzgitter/Germany (28/02/2017): The steel producer with about 25,000 employees worldwide achieved in the financial year 2016 external sales amounting to €7,905.7 million compared with €8,618.4 million in the previous year. The decline is above all due to the downtrend in the average selling prices of steel products.
Pre-tax profit increased to €53.2 million (2015: €4.1 million) and includes €19.1 million in contribution from the Aurubis investment (2015: €21.8 million) as well as a net figure of € –2.3 million in burdens on earnings from special items. Earnings after tax stood at €56.8 million (2015: € –56.0 million), exceeding the pre-tax result mainly due to the anticipated greater use of tax loss carryforwards.
With a net financial position of € 302 million and an equity ratio of 34%, the company continues to have a sound balance sheet and a comfortable financial basis.

Development of the business units
The Strip Steel Business Unit's external sales (€1,814.6 million; 2015: €1,922.5 million) reported a slight price-induced decline. At € - 2.3 million, the business unit lifted its pre-tax result compared with the year 2015 (€ –26.0 million) that was burdened by € –41.9 million from the relining of a blast furnace at Salzgitter Flachstahl GmbH.
Thanks to the European Union's first anti-dumping measures, spot prices began to rise from the spring onward, which was gradually reflected in an improved selling price quality.
At €741.8 million, the external sales of the Plate / Section Steel Business Unit dropped below the year-earlier level as a result of weak selling prices and shipments (€908.8 million). Although the segment improved its result significantly it nonetheless delivered another pre-tax loss (€ –32.1 million; 2015: € –74.1 million). This figure includes order-related provisions and €6.3 million in expenses for measures aimed at structural improvements in the plate companies.
Even though the shipment volumes of the Mannesmann Business Unit (steel tubes and pipes) exceeded the previous year's figure, external sales (€999.4 million; 2015: €1,062.6 million) declined due to selling price and structural effects. Despite the increase in the result of Salzgitter Mannesmann Großrohr GmbH and the higher positive contribution to earnings of the EUROPIPE Group that is included at equity, the business unit reported a pre-tax loss of € –22.4 million (2015: €2.2 million).
Owing to markedly lower prices and the downturn in shipment volumes, external sales (€2,855.0 million; 2015: €3,210.7 million) of the Trading Business Unit declined significantly. Although the earnings position of the stock holding steel trade remained weak in the first three months, the following months up until and including autumn brought a temporary widening of margins that was based on the steel price trend. Combined with the result of international trading, this led to a very presentable pre-tax profit of €45.2 million (2015: €32.2 million).

Projects
After the focus on restructuring and cost cutting initiatives in recent years, the group now places special emphasis on innovation and growth.
Outlook
Thanks mainly to selling prices rising in the EU steel market in response to the anti-dumping measures initiated in Europe, the Strip Steel Business Unit anticipates a more positive development of business. Supported by ongoing cost reduction measures, a significant increase in the pre-tax result due to its return to the profit zone is envisaged despite the partly sharp rise in raw materials prices, particularly for iron ore and coking coal.
The Plate / Section Steel Business Unit will continue to be exposed to a difficult market environment in the current financial year. Satisfactory capacity utilization is nevertheless expected for the two heavy plate producers. The production of input materials for the Nord Stream II contract will contribute to a notable basic capacity utilization at the Mülheim mill. The two companies will benefit from the extensive cost cutting and efficiency enhancement measures initiated in 2016.
The companies belonging to the Mannesmann Business Unit will again reflect very heterogeneous developments in 2017: While the German large-diameter pipe mills report good capacity utilization, also due to bookings in the previous year, the order situation in the North American market has deteriorated. The segments of medium-diameter line pipe, precision and stainless steel tubes are likely to stage a hesitant recovery at minimum.
Sources
https://www.salzgitter-ag.com/zb/2016/9m/de/
https://www.salzgitter-ag.com/fileadmin/mediadb/szag/investor_relations/news_und_publikation/praesentationen/gj_2015_aktualisierung/SZAG-03-Ueberblick_16.pdfhttps://www.produktion.de/nachrichten/unternehmen-maerkte/salzgitter-ag-schreibt-2016-schwarze-zahlen-120.html?utm_campaign=20170228_1000_PRO+Morning-NL+PRO+Morning&utm_source=pro-morning&utm_medium=emailhttps://www.salzgitter-ag.com/en/press/press-releases/press-release-of-salzgitter-ag/1970-01-01-cd1b2c2118/key-data-for-the-financial-year-2016.htmlhttp://www.finanztreff.de/news/press-release-salzgitter-ag-key-data-for-the-financial-year-2016/11920888
http://de.4-traders.com/indexbasegauche.php?lien=recherche&mots=Salzgitter&RewriteLast=zbat&noredirect=0&type_recherche=0
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Voestalpine

Voestalpine AG, Linz/Austria (09/02/2017): The specialty steel maker with more than 48,000 employees worldwide reports a 3.3% drop in nine-month revenue of the business year 2016/17 (April 1 to December 31, 2016) to €8,101.2 million compared to €8,380.4 million (Q1-Q3 2015/16). Earnings before interest, tax, depreciation and amortization (EBITDA) for the nine months to the end of December fell 12.1% to €1,061.1 million.
The first three quarters were marked by moderate growth trends in Europe, continuing volatility with a recent increase in economic expectations due to announcements from the new president in the USA, stable growth in China as well as a weakening recession in Brazil.
Voestalpine’s main customer segments, the automotive industry demonstrated ongoing high demand and the consumer goods segment enjoyed a solid recovery. At the same time, the railway infrastructure sector recorded slight declines and the energy sector showed continued signs of weakness not only in Europe.
Projects
In October 2016, the Steel Division opened the world’s largest and most modern direct reduction plant in Texas. The start-up phase has so far proceeded on schedule and the plant should transition to normal operation by the end of the fourth quarter of 2016/17.
Moreover, in this division, with its new plant developed in-house to produce heavy plate featuring completely new product properties and the continuous casting facility 8 currently under construction (start-up of operations is scheduled for fall 2017), both located at the Linz site, technological expansion is being consistently driven forward.
The Metal Forming Division remains focused on the implementation of key technologies for automotive components—including the start-up of its facility for the direct hot forming of galvanized steel at the location in Schwäbisch Gmünd, Germany, and, the start-up of its second plant for producing laser-welded blanks in Linz. With the opening of an additive manufacturing center (3D printing) for producing complex metal components in Düsseldorf, Germany, the Special Steel Division has taken another step for the advancement of future-oriented technologies.
The Metal Engineering Division focused on starting up its new wire rod mill in Donawitz, Austria. This plant is fully automated and is considered state-of-the-art in terms of Industry 4.0.
News
In view of the US President Donald Trump's plans to renegotiate the NAFTA free trade agreement and to introduce a border tax on imports from Mexico (aiming to attract manufacturing jobs from there to the United States), Voestalpine has set up a "Taskforce USA" to monitor the effects on its business. The team consists of eight members representing the company's four divisions, equally split between Austria and the United States, and includes legal, treasury and international trade experts.
Voestalpine generated annual revenue of about €1.2 billion ($1.3 billion) in the NAFTA free trade area of the United States, Mexico and Canada in its 2015/16 business year and aims to reach €3 billion by 2020. North America currently accounts for around 11% of total sales. About a third of Voestalpine's production in Mexico, much of which is for international carmakers' plants there, is destined for the United States. Voestalpine's total exports to the United States are about €300 million a year. It also sends about a third of the sponge iron it produces in Texas back to Austria as raw material for its high-end steel products.
Outlook
Voestalpine expects earnings to grow significantly in the fourth quarter due to stabilizing raw material prices, a stronger oil and gas sector and higher steel contract prices. The outlook for the business year 2016/17 as a whole continues to remain in line with the expectations expressed at the end of the first half of Business Year 2016/17 (September 30, 2016).
The goal is still an adjusted operating result (EBITDA) at the level of the previous year (€1.45 billion), and an (adjusted) profit from operations (EBIT) close to the level of the past business year (€ 814 million).
Sources
http://www.voestalpine.com/group/static/sites/group/.downloads/de/aktie/praesentation/2015-16-fact-sheet.pdf
http://www.voestalpine.com/group/de/investoren/
http://derstandard.at/2000052347915/Oel-und-Gassektor-laesst-Voest-Gewinn-schmelzen
http://www.reuters.com/article/us-voestalpine-results-idUSKBN15O1CL?type=companyNews
http://www.reuters.com/article/voestalpine-usa-idUSL8N1G16RH?type=companyNews
http://de.4-traders.com/indexbasegauche.php?lien=recherche&mots=voestalpine&RewriteLast=&noredirect=0&type_recherche=0
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Latest trends – Market Research Reports
Steel and steel products
Iron & Steel Market Research Reports & Industry Analysis
More: http://www.marketresearch.com/Heavy-Industry-c1595/Materials-Chemicals-c91/Iron-Steel-c718/
Global Stainless Steel Market Analysis & Trends - Industry Forecast to 2025
http://www.researchandmarkets.com/research/4n4mqj/global_stainless
Stainless Steel Flat Products Market Outlook
http://www.crugroup.com/market-analysis/products/stainlesssteelflatproductsmarketoutlook
Global Laminated Steel Industry 2017 Market Research Report
https://www.prbuzz.com/business-entrepreneur/405272-global-laminated-steel-industry-2017-market-research-report.html
Global Steel Tube Market Professional Survey Report 2017
https://www.htfmarketreport.com/reports/114458-global-steel-tube-market-2
Global Stainless Steel Tube Market Professional Survey Report 2017
https://www.absolutereports.com/global-stainless-steel-tube-market-professional-survey-report-2017-10522250
Market Survey and Report of Europe Welded Steel Tube Industry 2017
http://www.abnewswire.com/pressreleases/qyresearch-market-survey-and-report-of-europe-welded-steel-tube-industry-2017_101634.html
Steel wire market reports on different markets
More: http://www.researchandmarkets.com/search.asp?q=steel+wire
Steel wire industry statistics
http://www.reportlinker.com/report/search/theme/steel_wire
General information
http://www.steelmarketupdate.com/
https://www.worldsteel.org/
http://www.eurofer.org/