Brazil has consolidated its leading position in the Cimpor empire as the Portuguese-based cement major reports a rise in first-quarter 2011 profit.
Cimpor’s turnover in the first quarter rose by 14.3 per cent to Ä547.7m and the EBITDA improved by 15.4 per cent to Ä142.4m. A 4.2 per cent reduction in depreciation and provision charges to EUR53.7m led to a 31.7 per cent increase in the trading profit to EUR88.7m. Net financial expenses rose by 2.5 times to EUR9.8m, leading to a pre-tax profit 24 per cent higher at EUR78.9m and the net attributable profit emerged 27.1 per cent ahead at EUR57.9m. Net debt was 3.8 per cent lower at EUR1551m to give a gearing level of 71.8 per cent. Consolidated cement and clinker volumes increased by 4.7 per cent to 6.38Mt.
Brazil has reinforced its position as the leading source of volumes, turnover and profit. The Brazilian turnover rose by 34 per cent to EUR167.4m and the EBITDA advanced by 33.4 per cent to EUR49.9m, while cement and clinker sales improved by 9.1 per cent to 1.33Mt and cement prices were some nine per cent ahead. The results were boosted on conversion, thanks to the rise in the value of the Brazilian currency. To further strengthen its position in the Brazilian market, Cimpor has also announced plans this week for a new 1.2Mta integrated cement works to be built in Cerrado Grande at a cost of some EUR190m. Site work will start next year and is scheduled for completion in 2014. “This new cement production plant will allow Cimpor to benefit from the forecast growth of the south and southeast markets of Brazil, as the present units are operating at full capacity,” the company said in the statement.
Turnover in Portugal declined 3.1 per cent to EUR98.6m and the EBITDA eased 6.3 per cent to EUR24.6m per cent. Cement and clinker volumes fell by 16.5 per cent to 0.93Mt. Clinker exports to Egypt and the Canaries were down, and exports to Brazil have just been started. The cement tonnage was down by 4.3 per cent to 0.62Mt and some signs of price stability were being seen, while the reduction in demand in Andalucia was partially compensated for by increased volumes in Galicia.
In the Middle East, Egypt remains the largest contributor, but the turnover was off by 13.7 per cent to EUR51.5m and the EBITDA fell by 28.8 per cent to EUR16.7m as the tonnage was reduced by 10.5 per cent to 0.89Mt. The political situation led to production stoppages, but prices improved by some three per cent. In Morocco, the EBITDA eased by 1.6 per cent to EUR7.9m on a turnover that did improve by 17.5 per cent to EUR24.4m as volume improved by 11.2 per cent to 0.29Mt. The Tunisian turnover rose by 8.3 per cent to EUR20.7m and the EBITDA jumped by 37.5 per cent to EUR5.3m, thanks to lower clinker purchases, on volumes that were just 0.3 per cent higher at 0.44Mt. Turkish volumes rose by 26.9 per cent to 0.51Mt, generating a turnover 50.3 per cent higher at €Ä29.8m and producing an EBITDA up from EUR0.3m to EUR3.8m. Cement prices were increased by some 14 per cent and the contributions from aggregates and concrete were increased.
South African turnover edged ahead by 1.3 per cent to EUR33.3m on cement volumes that, helped by exports, were 5.7 per cent higher at 0.28Mt in a market that was off by some 10 per cent. Lower prices and higher energy costs combined to lower the EBITDA by 23.9 per cent to EUR11.8m. In Mozambique, turnover improved 19.1 per cent to EUR22.8m but the EBITDA was off by 4.2 per cent to EUR3.1m, because of higher maintenance costs. Cement volumes were 8.7 per cent lower as high prices attracted imports.