Lower European and Asian profits at Italcementi

Lower European and Asian profits at Italcementi
Published: 08 November 2010

Italcementi’s turnover for the first nine months declined by 4.7% to €3,665.9m and the running EBITDA was down by 16.2% to €660.

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 just €18.5m, with minority interests claiming considerably more with €115.0m, just 2.5% less than a year ago. Net debt at the end of September was 2.6% lower than a year earlier at €2357.0m, 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.

Cement and clinker sales in western Europe declined by 4.0% to 14.7Mt, while aggregates shipments retracted by 3.2% to 26Mt and ready-mixed concrete deliveries came off by 5.7% to 4.3Mm³.  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.

The Arab countries and Black Sea regional turnover was off by 1.1% to €1054.4m and the EBITDA declined by 5.3% to €303.9m.  Cement volumes declined by 3.9% to 14.6Mt, with aggregates sales declining by 11.1% to 1.7Mt but ready-mixed concrete deliveries improved by 10.1% to 3.1Mm³.
Asian cement deliveries improved by 4.8% to 8.3Mt and turnover improved by 4.2% to €330m, but the EBITDA dropped by 42.0% 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.  Thai ready-mixed concrete deliveries advanced by 18.4%.