BRUSSELS—Bekaert S.A.'s Rubber Reinforcement business has seen sales and earnings grow significantly in 2021, helped by "good pricing discipline" and higher volumes.
The segment achieved $2.18 billion (€2 billion) in consolidated third party sales, up 27.3 percent from last year, Bekaert reported Feb. 25.
Sales were driven by a 9-percent increase in volumes and an 18.3-percent rise in price-mix effects, which included the impact from passed-on raw material prices.
Earnings (EBITDA) was up 32 percent at $373 million, driven by higher sales.
Over the final quarter, Bekaert said the segment continued to have strong sales, except in China and Indonesia.
In the two Asian markets, it said, demand remained subdued as a result of softer domestic markets and lower exports due to container shortage and freight cost increases.
The setback was however "more than compensated" by continued strong volumes in other regions and by good pricing discipline, Bekaert added.
The segment's joint venture in Brazil reported 50.4 percent sales growth at constant exchange rates.
Here, Bekaert said the devaluation of the Brazilian real had a "significant" adverse effect of 7.7 percent, resulting in a top-line growth of 42.7 percent to $200 million.
Including joint ventures, the business unit's combined sales increased by 28.4 percent to $2.4 billion.
Bekaert operates three plants in Brazil through a 55.5-percent owned joint venture with ArcelorMittal, called Belgo Mineira Bekaert Artefatos de Arame Ltda.
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