Italcementi

Italcementi's turnover declined by 4.3% to €4790.9m in 2010, the underlying EBITDA came off by 13.9% to €836.3m and the trading profit fell by 20.1% to €353.8m. Net financial charges were reduced by 3.0% to €95.6m. Lower exceptional costs and an increased contribution from the Canadian associates left the pre tax profit 16.3% lower at €259.2m, but the net attributable dropped by 35.8% to €45.8m as the large minorities' charge rose by 5.0%, to €151.3m. Capital investment declined by 23.0% to €523.7m and spending on acquisitions dropped by 42.5% to €42.6m. Net debt at the end of 2010 was 7.8% lower at €2230.9m, giving a gearing of 44.7%, down from 51.6% a year earlier. The sale of emission rights produced an income of almost €56m, coming in the main from Italy, France and Bulgaria. Shipments of cement and clinker declined by 2.4% to 54.4Mt in the year, while the aggregates tonnage was down by 6.0% to 36.7Mt but ready-mixed concrete deliveries improved by 1.4% to 11.4Mm³.

Turnover in Italy declined by 16.4% to €824.8m and the EBITDA went from a positive €47.3m to a negative €36.3m and the trading loss more than doubled from €53.0m to €122.6m. Cement deliveries were off by 3.3%, but with a reduction less than that of the market, some market share was recovered. Prices deteriorated but the declines in both volumes and prices eased towards the end of the year. Costs were reduced thanks to an increased use of alternative fuels and lower energy consumption at the rebuilt Matera works.

French and Belgian turnover declined by 2.4% to €1493.8m and the EBITDA was off by 4.7% to €318.2m. French domestic deliveries were down by 4.3%, but overall cement and clinker sales were off by a more modest 3.0%. The aggregates and ready-mixed concrete deliveries both declined by about 2% in France, with aggregates prices improving but concrete prices falling. In Belgium, overall cement shipments improved by 1.5%, but domestic deliveries were down by 4.2%, though aggregates volumes improved by 3.6% and those for ready-mixed concrete advanced by 1.8%. Spanish domestic deliveries fell by 26.2%, but increased exports limited the overall volume reduction to 14.7%, leading to a 22.2% reduction in turnover to €176.5m and the EBITDA fell by 25.1% to €31.6m. Greek cementitous volume fell by 11.2%, leaving turnover 15.6% lower at €70.3m and the EBITDA fell by 31.3% to €21.1m. Bulgarian cement and clinker volumes dropped by 33.4% and prices suffered from falling demand and import pressures from Turkey. As a result, Bulgarian turnover fell by 44.1% to €56m and the EBITDA by 34.3% to €17m.

Egyptian turnover eased by 0.5% to €788.7m but the EBITDA improved by 3.2% to €270.7m. In endeavouring to maximise profits, domestic volumes were reduced by 5.4% in a market that grew by about 3%, with market shares of 26% in grey cement and of 42% in white cement. In Morocco, turnover improved by 1.8% to €326.1m but the EBITDA narrowed by 4.9% to €125.7m. Domestic deliveries rose by 2.9% and prices were slightly higher, helped by the new Aït Baha works and a new grinding line at Indusaha. In Turkey, domestic deliveries rose by 8.8% and total shipments by 5.6%. A 27.1% increase ready–mixed concrete volumes was largely offset by lower prices. For Turkey, a €4m EBITDA loss was still incurred, but with prices are now improving. In Kuwait turnover rose by 2.4% to €50m and, group cement volume was up by 5.0%, but, ready-mixed concrete deliveries declined by 5.3%.

The turnover across the USA, Canada and Puerto Rico improved by 3.5% to €415.3m and the EBITDA just over doubled by rising 103.2% to €25.4m. Canada provided a healthy market. North American cement volumes were virtually stable overall, edging ahead by 0.2% to 4.0Mt, but prices suffered from severe competitive pressures in the USA and declined. Downstream, aggregates volumes rose by 50.4% to 1.0Mt and ready-mixed concrete deliveries were up by 3.9% to 0.8Mm³.

Indian turnover eased by 1.2% to €169.8m while the EBITDA dropped by 40.6% to €36.0m, though domestic sales deliveries rose by 3.8% and total cement and clinker deliveries by 8.4% in an over-supplied market, but signs are now more positive. The Thai turnover recovered by 12.1% to €180.2m and but the EBITDA dropped by further 32.8% to €15.0m. Domestic cement sales improved by 3.1% and exports to Cambodia and Burma were higher, but clinker exports were well down leading to total cementitous volume being off by 2.1%, while ready-mixed concrete volumes rose by 17.9%.

In China, turnover rose by 11.3% to €52.1m on a volume that was 9.4% higher, but new capacity led to lower prices and the EBITDA declined by 10.0% to €8.0m. The Kazakhstan turnover rose by 44.9% to €46.7m as volumes rose by 16.1% and prices increased, more than doubling the EBITDA to €9m. The international trading activities sold 3.8Mt of cement and clinker last year, a reduction of 6.9%, with higher inter-group sales being higher by lower third party volume. The turnover generated by the trading activities improved by 3.7% to €229.3m and the EBITDA rose by 30.0% to €14.3m.

In the first quarter of 2011, the cost of the civil unrest in Egypt cost the group some EGP80m (US$13.5m).