Cementir suffers from the poor Italian market

Cementir suffers from the poor Italian market
Published: 09 March 2011

Cementir Holding, the Italian cement group that controls Aalborg Portland in Denmark and Cimentas Izimir Cimento Fabrikasi in Turkey, has announced a turnover 2.4% higher at €842.3m in respect of 2010. 

This was helped by a recovery in volumes in both Scandinavia and Turkey from the spring onwards in addition to good volumes from Egypt and the Far East for the whole year.  Italy, on the other hand, suffered from a poor performance throughout the year.  Shipments of grey and white cement increased by 3.9% to 10.01Mt, while ready-mixed concrete deliveries were ahead by 3.6% to 3.19Mm³.  However, aggregates shipments did fall by 11.6% to 3.61Mt. The number of employees was reduced by 4.4% to 3289.    

Apart from the falling volumes and prices on the Italian market, the results were also hit by higher energy costs and the EBITDA fell by 19.6% to €108.9m.  The trading profit (EBIT) dropped by 56.8% to €22.5m, but a sharply higher income from associates and a positive net financial result limited the reduction at the pre-tax level to 46.1% to €25.9m.  A higher minorities charge, which jumped by 83.4% to €8.3m, however, reduced the net attributable profit by 68.7% to €9.3m.  Net debt at the end of the year declined by 11.9% to €336.1m to give a gearing level of 31.2%, compared with 38.0% a year earlier.

Earlier in 2011, Cementir Holdings’ Turkish subsidiary Çimentas Izmir Cimento Fabrikasi raised cash by reducing its stake in its ready-mixed concrete arm Cimbeton Hazir Beton from 76.2% to 66.4% in two stages.