Italcementi
Italcementi's turnover for the first nine months of 2010 declined by 4.7% to €3,665.9m and the EBITDA fell by 16.2% to €660m. The trading profit fell by 25.1% to €303.4m and the interest charge rose by 19.6% to €92.8m, which after other items left the pre-tax profit 36.0% lower at €198.6m. The net attributable profit dropped by 82.2% to €18.5m, after a €115m minorities charge, largely in Egypt. The net debt at the end of September was 2.6% lower than a year earlier at €2,357m, giving a gearing of 48.2% compared with 55.0% a year ago. Capital expenditure was 37.2% lower at €314.4m. Cement and clinker deliveries were 2.4% lower at 41.2Mt. The volume of cement trading was 2.5% lower at 3.0Mt.
Cement and clinker sales in western Europe declined by 4.0% to 14.7Mt. Italian cement volumes fell by 4.2% to 7.1Mt with turnover being down by 13.6% to €528.3m and a €3.7m loss was incurred, compared with a €67m profit as prices dropped. In France and Belgium, turnover declined by 1.3% to €1,157.1m and the EBITDA came off by 3.2% to €256m, with prices being slightly lower in France but stable in Belgium. Group cement deliveries in Spain fell by 25.7% and prices were weaker, but cement and clinker exports limited the overall volume decline to 14.2%.
The Arab countries and Black Sea regional turnover was off by 1.1% to €1,054.4m and the EBITDA declined by 5.3% to €303.9m. Cement volumes declined by 3.9% to 14.6Mt. In Egypt, turnover rose by 1.4% to €610.6m but the EBITDA declined by 5.5% to €187.9m, as the company lost some volume trying to protect prices. The Egyptian export ban expired in October, having been in force for over two years. Moroccan cement deliveries were helped by the new Ait Baha works as well as an additional mill at the Indusaha grinding centre and rose by 3.6%, with turnover improving by 2.4% to €248.9m and the EBITDA edged ahead by 0.1% to €98.9m. In Turkey, cement consumption recovered, though prices declined. Cement deliveries in Kuwait improved by 3.5% and profitability improved. The main disappointment came in Bulgaria, where cement deliveries dropped by 38.9% because of lower construction activity and increased imports from Turkey. The impact on the profit line was reduced somewhat by a lower cost base and the sale of emission rights.
Asian cement deliveries improved by 4.8% to 8.3Mt and turnover improved by 4.2% to €330m, but the EBITDA dropped by 42% to €47m as profits fell in India and in Thailand. In India, turnover decreased by 7.8% to €125.2m and the EBITDA dropped by 58.8% to €22.9m. Cement volumes rose by 5.4%, but increased capacities put severe pressure on prices and kiln fuel and electricity prices rose. Thai turnover improved by 8.7% to €131.4m, but the EBITDA fell by 28.3% to €11.2m. Total sales volume declined by 3.0%, with domestic cement deliveries rising by 2.6% and cement exports to Cambodia and Burma increased but clinker exports dropped. Helped by government investment in the infrastructure, the Chinese cement volume rose by 11.4%, though prices were weaker. Profitability improved, thanks to costs being kept under strict control. In Kazakhstan volumes rose by 12.1% thanks to a strong first half, though third quarter volumes were 1.4% lower.
North American cement volumes declined by 0.9% to 3.0Mt, helped by a slight recovery in the third quarter. Italcementi is recovering market share in North America. The turnover improved by 1.7% to €317.0m and the EBITDA jumped by 50.6% to €13.7m.
