Italcementi’s net profit halved

Italcementi’s net profit halved
Published: 08 March 2010

Italcementi’s turnover declined by 13.3% in 2009, with the underlying EBITDA being off by 12.7% to €971.6m and the trading profit falling by 27.1% to €443m. Net financial costs rose by 25.6% to €98.1m, as these had been abnormally low in the previous year, thanks to the receipt of the €50m penalty from Sibirskiy Cement because of the non-completion of the sale of Set Çimento in Turkey.

The pretax profit declined by 27.7% to €309.5m, and the net attributable profit was exactly halved to €71.3% as the minorities’ charge rose by 7.4%, reflecting the strong profitability in Egypt, where there is a large minority.  In fact, the minorities’ charge was more than twice the group’s net attributable profit.   
 
Capital investment was 3.6% lower at €680.1m, while spending on acquisitions was substantially lower at €42.8m and consisted essentially of two ready-mixed concrete businesses, one in France and the other in Kuwait. Net debt at the end of last year declined by 9.7% to €2,419.9m, resulting in a gearing level of 51.6%, compared with 58.1% a year earlier. 

Shipments of cement and clinker were down by 11.1% to 55.7Mt in the year, while the aggregates tonnage fell by 19.1% to 35.4Mt and the ready-mixed concrete deliveries by 18.6% to 11.2Mm³.