Minorities virtually eliminate Italcementi’s net profit

Minorities virtually eliminate Italcementi’s net profit
Published: 02 August 2010

Italcementi’s first half turnover declined by 5.1% to €2,455.1m and the running EBITDA was down by 12.6% to €434.5m.  The trading profit fell by 16.8% to €197.9m and the net attributable profit virtually disappeared by dropping 99.3% from €55.1m to €0.4m, above all reflecting the large minority in the profitable Egyptian business.  Net debt at the end of June was 11.7% lower than a year earlier at €2,458.1m, giving a gearing of 48.3%. 

Cement and clinker shipments in the period declined by 1.1% to 27.5Mt, while deliveries of aggregates were down by 4.0% to 19.2Mt, but ready-mixed concrete volumes increased by 1.8% to 5.7Mm³.  

Western European turnover declined by 9.1% to €1,247.7m and the EBITDA fell by 17.5% to €191.5m, while capital expenditure was reduced by 6.4% to €79.2m. Cement and clinker volumes were down by 5.1% to 9.7Mt, while consolidated aggregates shipments were 4.6% lower at 17.4Mt and ready-mixed concrete deliveries were 6.0% less at 2.9m m³. 

Egypt presented a positive picture, with turnover up by 6.7% to €445.4m, but the EBITDA was 2.0% lower at €134.4m. Capacity constraints meant that clinker had to be bought in and cement volumes advanced by 3.7%. In ready-mixed concrete, deliveries were off by 2.0% and prices weakened notably.  Moroccan turnover improved by 4.7% to €174.4m and the EBITDA was virtually unchanged at €66.6m. 

The Asian turnover improved by 0.6% to €212.8m, but the EBITDA dropped by 35.1% on the back of reduced profitability in India and Thailand. The Indian EBITDA dropped by 51.1% to €19.4m as a result of very competitive pricing in Southern India, but cement and clinker volume did improve by 3.5%. The Indian turnover declined by 13.6% to €82.3m.

North American turnover was off by 2.1% to €185.7m, but the EBITDA loss was reduced from €10.3m to €5.4m, thanks to a reduced cost base at the new Martinsburg plant. Cement shipments declined by a further 2.1% to 1.8Mt, while downstream volumes were ahead, helped by acquisitions.